Connacher Spuds First SAGD Horizontal Well at Great Divide Pod One

Connacher Oil and Gas Limited said late Monday that it has spudded its first horizontal production well at its Great Divide Pod One SAGD oil sands project in northeastern Alberta.

The well, Great Divide Oil Corporation Producer 1 West (GDOC P1W), was spudded in on Sunday evening, November 26, 2006 utilizing Tri City Rig No.37. This marks the beginning of the company's 15 well pair program, comprised of 15 horizontal wells designed for bitumen production from the McMurray Formation and 15 horizontal wells designed for steam injection into the bitumen-bearing McMurray Formation. These are the initial 15 well pairs of what is anticipated to be a total of approximately 60-well pairs which will eventually be drilled to fully exploit the Pod One accumulation over the forecast 25-year life of the project.

A second rig is scheduled to be added to the drilling program in early 2007 to complete the drilling of the first phase well pairs.

Separately, the company is most pleased to announce the appointment of two new vice presidents within its operating group.

Darren Jackson, P. Eng., has been appointed to the position of Vice President, Operations effective immediately. Jackson holds a B. Sc. in petroleum engineering from the University of Alberta. He has over 18 years of Western Canadian oil industry experience, primarily focused on operations and production/exploitation engineering. He was previously employed by both major integrated and independent oil and natural gas companies and will be responsible for managing Connacher's overall production and operations.

Steve De Maio, P. Eng., has also been appointed, effective immediately, to the position of Vice President, Project Development. De Maio also holds an MBA and has most recently been consulting to Connacher as Deputy Project Manager, Great Divide. Prior to joining Connacher, Steve was Oil Sands Project Consultant to another independent oil sands company, which was recently sold to a major international oil company.

He has worked in the oil industry since 1993, including as a senior project engineer with a prominent independent engineering consulting firm; was, prior to its sale, Manager of Facilities and Development Engineering with a large and extremely active independent company, where he managed annual engineering and facilities budgets exceeding $125 million, and was subsequently President and a director of a small private energy company prior to returning to oil sands consulting work in 2005. De Maio will focus on new project development for Connacher, with an initial emphasis on subsequent pod development at Great Divide.

Jackson and De Maio will report to Mr. Peter Sametz, Executive Vice President and Chief Operating Officer.


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