CONNACHER ANNOUNCES CLOSING OF EQUITY OFFERING

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Oct. 22 /CNW/ - Connacher Oil and Gas Limited ("Connacher" or the "Company"- CLL - TSX) announces that it has closed its previously announced equity financing (the "Offering") of 17,480,000 flow-through common shares ("Flow-Through Shares") at a price of $1.45 per Flow-Through Share (the "Offering Price") for gross proceeds of $25,346,000, which amount includes the proceeds from the exercise in full by the underwriters of an over-allotment option to purchase an additional 2,280,000 Flow-Through Shares at the Offering Price. The Offering was underwritten by a syndicate led by RBC Capital Markets with TD Securities Inc. as co-lead manager, and including Macquarie Capital Markets Canada Ltd., Raymond James Ltd., BMO Nesbitt Burns Inc., GMP Securities L.P. and Scotia Capital Inc.

Connacher will use the proceeds from the sale of the Flow-Through Shares to pay exploration expenses on the Corporation's properties which qualify as Canadian Exploration Expenses (as such term is defined in the Income Tax Act (Canada)). It is anticipated that the proceeds will be used to conduct additional three-dimensional (3D) seismic programs and to further delineate and define Connacher's oil sands properties through the drilling of additional core holes.

Connacher Oil and Gas Limited is a Calgary-based crude oil, bitumen, natural gas and natural gas liquids production company. Principal oil sands assets are held in the Great Divide region of Alberta. Conventional production is held in Alberta and Saskatchewan and Connacher also owns and operates a heavy oil refinery in Great Falls, Montana and maintains an approximate 19 percent equity stake in Petrolifera Petroleum Limited, a public oil company active in Argentina, Peru and Colombia in South America. Connacher's common shares (CLL - TSX) and its outstanding convertible debentures (CLL.DB.A - TSX) are listed for trading on the Toronto Stock Exchange.

Forward-Looking Information

This press release contains certain "forward-looking information" within the meaning of applicable securities law including statements regarding the proposed use of proceeds 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. 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 ability to access sufficient capital from external sources. 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, 2009 which is available at www.sedar.com. 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.