Connacher announces closing of bought deal offering



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    CALGARY, Nov. 16 /CNW/ - Connacher Oil and Gas Limited ("Connacher" -
CLL - TSX) announces that it has closed its previously announced bought deal
financing of 10,350,000 flow-through common shares ("Flow-Through Shares") at
a price of $5.00 per Flow-Through Share for gross proceeds of $51,750,000,
which includes the exercise in full by the underwriters of an over-allotment
option to purchase an additional 1,350,000 Flow-Through Shares. The bought
deal financing was underwritten by a syndicate led by RBC Capital Markets and
including GMP Securities L.P., Orion Securities Inc., Raymond James Ltd., TD
Securities Inc., D & D Securities Company, Desjardins Securities Inc. and HSBC
Securities (Canada) Inc. The net proceeds of the offering of Flow-Through
Shares will be used to incur eligible Canadian exploration expenses, which
will be renounced in favour of the purchasers for the 2007 taxation year.
    Directors, officers, employees and associates of Connacher collectively
purchased an aggregate of 400,000 Flow-Through Shares at a price of $5.00 per
Flow-Through Share, on identical terms to those afforded all other purchasers.
    Connacher also announces that it has issued an aggregate of 100,000
Flow-Through Shares to an arm's length party pursuant to a private placement.
The Flow-Through Shares were issued at a price of $5.00 per Flow-Through Share
and are subject to a four month hold in accordance with applicable securities
legislation. Total gross proceeds of $52,250,000 were raised by Connacher
pursuant to the bought deal financing and the private placement.
    After giving effect to the common shares issued under the financing and
private placement, Connacher now has 209,896,923 common shares outstanding.

    Connacher Oil and Gas Limited is a Calgary-based Canadian company
primarily engaged in the exploration for, and development, production,
refining and marketing of, bitumen, crude oil, natural gas and refined
petroleum products. The company's principal assets are its significant bitumen
reserves and resources and its 100 percent working interest in approximately
95,000 acres of oil sands leases in the Divide and Halfway Creek regions near
Fort McMurray, Alberta. It also owns conventional production and reserves at
Marten Creek and Three Hills, Alberta and at Battrum, Saskatchewan. Connacher
owns and operates a 9,500 barrel per day refinery in Great Falls, Montana and
maintains a valuable 26 percent equity stake in Petrolifera Petroleum Limited
(PDP - TSX), a public company active in Argentina, Colombia and Peru in South
America.

    Forward-Looking Statements: This news release contains certain
"forward-looking information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate", "estimate",
"may", "will", "would", "potential", "proposed" and other similar words, or
statements that certain events or conditions "may" or "will" occur. These
statements are only predictions. Forward-looking information is based on the
opinions and estimates of management at the date the information is provided,
and is subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those projected
in the forward-looking information. These factors include the inherent risks
involved in the exploration and development of oil sands properties,
difficulties or delays in start-up operations, the uncertainties involved in
interpreting drilling results and other geological data, fluctuating oil
prices, the possibility of unanticipated costs and expenses, uncertainties
relating to the availability and costs of financing needed in the future and
other factors including unforeseen delays. As an oil sands enterprise in the
development stage, Connacher faces risks including those associated with
exploration, development, start-up, approvals and the ability to access
sufficient capital from external sources. For a description of the risks and
uncertainties facing Connacher and its business and affairs, readers should
refer to Connacher's Annual Information Form for the year ended December 31,
2006. Connacher undertakes no obligation to update forward-looking statements
if circumstances or management's estimates or opinions should change, unless
required by law. The reader is cautioned not to place undue reliance on
forward-looking statements.





For further information:

For further information: Richard A Gusella, President and Chief
Executive Officer, Connacher Oil and Gas Limited, Phone: (403) 538-6201, Fax:
(403) 538-6225, inquiries@connacheroil.com, Website: www.connacheroil.com


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