Connacher Announces Renewed Credit Facility

CALGARY, Jan. 28, 2013 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX; "Connacher" or the "Company") is pleased to announce that the borrowing base under the Company's revolving credit facility with a syndicate of Canadian lenders has been set at $ 95 million. The terms of the facility are otherwise unchanged. There are no outstanding amounts owing other than approximately $2.2 million in letters of credit.

The Company's 2013 capital program is well under way. At Algar, the re-drill of the 202-1 well pair has been completed. The drilling rig has been moved to Pod One, and has commenced the drilling of four new well pairs at Pad 104. First steam is estimated to commence in the third quarter of 2013.  Following completion of drilling at Pad 104, it is currently anticipated that the rig will be utilized to drill a minimum of two infill wells at Pod One.

About Connacher

Connacher Oil and Gas Limited is a single purpose Company active in the development, production and sale of bitumen. The Company's principal assets are holdings in the Great Divide oil sands project in northern Alberta, south of Fort McMurray.

Forward Looking Information:

This press release contains forward looking information including expectations regarding the commencement of first steam at Pad 104 and future drilling of infill wells at Pod One.

Forward looking information is based on management's expectations regarding the company's future financial position, the company's future growth, results of operations and production, future commodity prices and foreign exchange rates, future capital and other expenditures (including the amount, nature and sources of funding thereof), plans for and results of drilling activity, environmental matters, business prospects and opportunities and future economic conditions.  Forward looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to:  the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates, the uncertainty of geological interpretations, the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), risk of commodity price and foreign exchange rate fluctuations and risks associated with the impact of general economic conditions.

Additional risks and uncertainties affecting Connacher and its business and affairs are described in further detail in Connacher's Annual Information Form for the year ended December 31, 2011, which is available at www.sedar.com. Although Connacher believes that the expectations in such forward looking information are reasonable, there can be no assurance that such expectations shall prove to be correct. The forward looking information included in this press release is expressly qualified in its entirety by this cautionary statement. The forward looking information included herein is made as of the date of this press release and Connacher assumes no obligation to update or revise any forward looking information to reflect new events or circumstances, except as required by law.

SOURCE: Connacher Oil and Gas Limited

For further information:

Kelly J. Ogle or Greg Pollard
Phone: [phone]
[e-mail]