CONNACHER OIL AND GAS LIMITED

Connacher Oil and Gas Limited announces today that on October 16, 2009 a major milestone was achieved at the Algar construction site with the engineered lift of the two evaporator towers, which constitute part of Connacher’s second 10,000 bbl/d steam-assisted gravity drainage (“SAGD”) plant at its Great Divide oil sands development project in northeastern Alberta. Construction at the Algar project is proceeding on time and under budget at this time, with a target to complete the plant and tie in the associated seventeen SAGD horizontal well pairs in early April 2010. Thereafter, it will take approximately one month to commission the plant and steaming of the well pairs should start in May 2010 and last approximately three months before first production in approximately August 2010.