Connacher's projects on track

    CALGARY, Jan. 23 /CNW/ - Connacher Oil and Gas Limited (CLL-TSX)
announces today that it continues to hit and exceed milestones for its
projects this winter. The current financial market turmoil is not affecting
Connacher's progress or business activities.
    At Great Divide, Connacher's SAGD project continues to meet and exceed
milestones on its ramp up to 10,000 barrels per day of bitumen. For the month
of January 2008, the company is anticipating sales of over 40,000 barrels of
raw bitumen, which are approximately double the originally anticipated volumes
for the month. Production of raw bitumen has recently exceeded 2,000 barrels
per day.
    Seven well pairs have now been "flipped over" to SAGD production and
consistent with the ramp up process, are at various stages of contribution to
total volumes as individual wells also undergo a ramp up process. Connacher's
operating staff has been handling the increased oil treating loads in an
effective manner. Well pairs are converted from circulation phase to SAGD
production in a sequential disciplined manner, as reservoir temperature and
pressure constraints are met. The other components of the surface facilities
continue to perform very well, particularly the produced water treating
system, utilizing evaporator technology and the boiler systems. As the bitumen
throughput continues to ramp up to full capacity and all the limits of the
process are maximized, there will be additional learning. However, the
performance to date is indicative of good design and the competence of the
Great Divide operating staff.
    The produced raw bitumen is blended with diluent and is trucked and sold
into various markets. The logistics of this trucking and marketing operation
have also gone very well this month. As previously indicated, Connacher
anticipates that Pod One production will ramp up to 10,000 barrels per day of
bitumen from all 15 well pairs later in 2008.
    Operations on Connacher's 120 well core hole, seismic delineation and
2008 exploration program for 2008 is advancing favorably. Results of the
program will be evaluated and interpreted over the next two quarters. On the
conventional side of the business the company has now drilled and cased five
out of five gas wells in the Randall area of its Marten Creek gas production
area in northern Alberta. The six million cubic feet per day Randall gas
plant, gathering system and sales line is currently under construction and is
targeted for completion at the end of first quarter 2008. The Randall gas
discoveries of last winter and the new Randall gas wells will be tied in to
this new plant.

    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 Information: This press release contains certain
"forward-looking information" under applicable securities law including:
anticipated bitumen production and sales rates and the timeline for the
achievement of anticipated production levels at Great Divide Pod One,
Connacher's 2008 planned core hole program and the anticipated timetable for
completion of facilities and volumes of natural gas from the Randall area.
Forward-looking information is 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 information is 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 continuing ability to access
sufficient capital from external sources if required. Actual production levels
at Great Divide Pod One and the timelines associated therewith may vary from
those anticipated in this news release and such variations may be material.
The timeline for completion of the Randall gas plant, gathering system and
sales line are estimates only and may be delayed by factors outside of the
control of Connacher such as weather and access to services and required
equipment. 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,,

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