Connacher Oil and Gas Limited - Underwriters exercise full over-allotment option


    CALGARY, June 2 /CNW/ - Connacher Oil and Gas Limited ("Connacher" or the
"Corporation") announced today that it has received notice from RBC Capital
Markets, on behalf of the underwriters of the Corporation's equity financing
announced May 19, 2009 (the "Offering"), that the underwriters have exercised
their over-allotment option to purchase an additional 25,012,500 common shares
of Connacher. As a result of the exercise of the over-allotment option in
full, the aggregate gross proceeds to Connacher of the financing will now be
$172,586,250. The closing of the financing, including the over-allotment
option, is expected to occur on or about June 5, 2009. Upon closing of the
Offering, including the common shares issuable pursuant to the over-allotment
option, the Corporation will have 403,463,442 common shares (443,905,457
common shares on a fully diluted basis) issued and outstanding.

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States or any other
jurisdiction outside of Canada, nor shall there be any sale of the securities
in any jurisdiction in which such offer, solicitation or sale would be
unlawful. The Common Shares offered have not been, and will not be, registered
under the 1933 Act, or any state securities laws and may not be offered or
sold in the United States absent registration or an applicable exemption from
the registration requirements of the 1933 Act and applicable state securities

    Connacher is a Calgary-based bitumen, crude oil and natural gas company.
It is primarily an oil sands company, with operations at its 10,000 bbl/d
Great Divide Pod One steam assisted gravity drainage ("SAGD") plant in
northeastern Alberta and with plans to construct a second similar sized SAGD
project in Great Divide at Algar. It owns conventional Canadian production and
reserves, a 9,500 bbl/d heavy oil refinery in Great Falls, Montana and a 24
percent equity stake in Petrolifera Petroleum Limited (PDP-TSX), a successful
production and exploration company active in Argentina, Colombia and Peru in
South America. Connacher's Common Shares and convertible debentures are listed
for trading on the Toronto Stock Exchange.

    Forward-Looking Statements: This news release contains certain
"forward-looking information" within the meaning of applicable securities law
including statements regarding the proposed timing of closing of the Offering.
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. 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,
2008. 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, or Grant D. Ukrainetz, Vice President, Corporate
Development, Phone: (403) 538-6201, Fax: (403) 538-6225,, Website:

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