Update Regarding Strategic Process

CALGARY, April 27, 2012 /CNW/ - Connacher Oil and Gas Limited (TSX: CLL) ("Connacher" or the "Company") previously advised that its Board of Directors has initiated a process to review the Company's business plans and review strategic options. Goldman Sachs and RBC Capital Markets have been engaged to assist the Board of Directors in connection with this strategic review.

Connacher will be issuing its 2012 first quarter results, as is normal, on May 15, 2012, following its regularly scheduled Board meeting. Preliminary data indicates that financial results will show improvement over the comparable period for 2011 and that production is within previously issued guidance. Connacher continues to expand its "dilbit by rail" strategy and leased railcar fleet in order to take advantage of excellent pricing (after transportation costs) for diluted bitumen railed to refineries on the Gulf Coast which are currently not accessible by pipeline.   Pricing for diluted bitumen is quite volatile dependent on where in North America it is being purchased.  This dilbit by rail strategy allows Connacher to mitigate this volatility to a considerable degree and provide additional options to its normal Alberta-based sales.

The Company's outstanding convertible debentures, with a face value of $100 million mature on June 30, 2012. It is Connacher's intention to settle the convertible debentures in cash at that time, utilizing its current cash balances and a portion of its $100 million bank credit facility.

With regard to the strategic review process, Connacher and its advisors continue to be engaged with a number of highly qualified parties regarding the future plans of Connacher.  Interested parties' due diligence examinations are on-going and the Company will be advising shareholders of any significant developments in due course.

ABOUT CONNACHER

Connacher Oil and Gas Limited is a fully integrated Calgary‐based exploration, development and production company active in the production and sale of bitumen, crude oil, natural gas and natural gas liquids. The Company's principal assets are holdings in the Great Divide oil sands project in northern Alberta, as well as conventional light gravity crude oil and natural gas properties in central Alberta and a wholly‐owned subsidiary which operates a 9,500 bbl/d heavy crude oil refinery in Great Falls, Montana.

FORWARD‐LOOKING INFORMATION

This press release contains forward‐looking information including but not limited to the Company's 2012 first quarter financial and operational results and the Company's intentions with respect to settling its convertible debentures.

Forward‐looking information is based on management's expectations regarding future financial results, results of operations and financial position. 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 operational risks in development, exploration, production and start‐up activities and risks associated with the impact of general economic conditions.  Additional risks and uncertainties are described in further detail in Connacher's Annual Information Form ("AIF") 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 in this press release is made as of April 27, 2012 and Connacher assumes no obligation to update or revise any forward‐looking information to reflect new events or circumstances, except as required by law.

In addition, there can be no assurance that a transaction will result from the strategic review currently being undertaken by the Company's Board or, if a transaction does materialize, no assurance can be made with respect to the terms or timing associated therewith.

For further information:

Colin M. Evans or Kelly J. Ogle
Phone: [phone]
[e-mail]
connacheroil.com

Peter Sametz
Phone: [phone]
[e-mail]
connacheroil.com