Connacher Oil and Gas Limited steaming all 15 SAGD well pairs



    CALGARY, Oct. 5 /CNW/ - Connacher Oil and Gas Limited (CLL-TSX) announces
today that it has successfully commenced steam injection on all fifteen
steam-assisted gravity drainage ("SAGD") well pairs at Great Divide Pod One,
the company's first 10,000 barrel per day oil sands project located
approximately 50 miles south of Fort McMurray, Alberta. The company met its
timeline in achieving steam injection in all 30 wells (15 well pairs).
    The well pairs are located on two "pads" or large wellsites, which
include not only wellheads but gathering, measurement and monitoring
equipment, all of which is fully functional and operating. Initial downhole
monitoring suggests that heating of the reservoir has started as planned. The
company will continue circulating steam into both horizontal injection wells
and horizontal producer wells into December 2007, which is intended to result
in even heating of the bitumen and the reservoir along all wellbores. At that
time, the horizontal producing wells will be converted to full time production
and the intended bitumen ramp up to 10,000 barrels per day will commence.
    This pre-heating or steam circulation phase is necessary to enhance the
likelihood that each well pair achieves maximum productivity and recovery of
bitumen over time. Both this well steaming operation and the earlier plant
commissioning operations have gone exceptionally well, with little in the way
of upsets; allowing the company to continue to meet its previously established
schedule.

    Connacher Oil and Gas Limited is a Calgary-based Canadian oil and natural
gas exploration, development and production company. The company's principal
assets are its significant bitumen reserves and resources and its 100 percent
interest in approximately 95,000 acres of oil sands leases in the Great Divide
region 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 statements" within the meaning of such statements under
applicable securities law including: anticipated bitumen production rates and
the timeline for first production at Great Divide Pod One. Forward-looking
statements are frequently characterized by words such as "plan", expect",
"project", "intend", "believe", anticipate", estimate", "may", "will",
"potential", "proposed' and other similar words, or statements that certain
events or conditions" may" or "will" occur. These statements are only
predictions. Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and are 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 statements. 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, www.connacheroil.com, inquiries@connacheroil.com


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