Replies to post #340 on Unconventional Oil

[johnlw]

This seems like a practical strategy:
....The transaction helps Connacher crystallize its strategy of hedging its initial natural gas requirements to make steam for its Great Divide oil sands project....

Makes more sense to me than building a nuclear facility.<gg>

[johnlw]

Connacher Announces Bought Deal Private Placement Financing

NEWS RELEASE TRANSMITTED BY CCNMATTHEWS

Connacher Oil and Gas Limited

January 31, 2006 - 08:32:31 ET

Connacher Announces Bought Deal Private Placement Financing


CALGARY, ALBERTA--(CCNMatthews - Jan. 31, 2006) -

Not for distribution to United States newswire services or for dissemination
in the United States

Connacher Oil and Gas Limited ("Connacher")(TSX:CLL) announces that it has
entered into an agreement to sell to a syndicate of underwriters led by GMP
Securities L.P. and including Raymond James Limited, Dominick & Dominick
Securities Inc., PowerOne Capital Markets Limited, Jennings Capital Inc.,
Octagon Capital Corporation, Bolder Investment Partners Ltd. and Mustang
Capital Partners Inc. (collectively "the Underwriters"), 8,571,500 common
shares at a price of $5.25 per common share to raise aggregate gross proceeds
of $45,000,375 on a bought deal basis. Connacher has granted the Underwriters
an option, exercisable in whole or in part at any time prior to closing, to
purchase up to an additional 5,714,300 common shares at the same offering
price. Should the Underwriters' option be exercised in full, the total gross
proceeds of the offering would be $75,000,450. Closing is expected to occur on
or about February 23, 2006. The common shares will be resold to accredited
investors by way of private placement and will be subject to a four month hold
period from closing.

The net proceeds from the financing will be used to fund Connacher's ongoing
exploration and development activities, for general corporate purposes
including working capital and may be used to partially reduce short-term
indebtedness incurred to acquire Luke Energy Ltd.

The securities offered have not been and will not be registered under the
United States Securities Act of 1933, as amended, and may not be offered or
sold within the United States or to, or for the account or benefit of, U.S.
persons absent registration or applicable exemption from the registration
requirements.

Connacher is a Calgary-based oil and natural gas exploration and production
company. Its principal asset is its 100 percent ownership of the Great Divide
oil sands project in Alberta, where 110 sections (70,400 acres) of oil sands
leases are held. The company also owns extensive conventional acreage and oil
production in southwest Saskatchewan. Following the recent exercise of some
outstanding warrants by third parties, Connacher now owns approximately 33
percent (basic) of Petrolifera Petroleum Limited (PDP - TSX), a Canadian
public company engaged in oil and natural gas exploration and production in
Argentina and Peru. Connacher has also agreed to acquire Luke Energy Ltd. and
is negotiating a binding agreement pursuant to which it is proposing to
acquire the refining assets of Montana Refining Company.