Connacher, Petrolifera Complete Signing of Block 107 License in Peru

Connacher confirmed the signing of a License Contract with Perupetro for the exploration and exploitation of hydrocarbons on Block 107 in the Ucayali Block onshore central Peru. The signing occurred at a ceremony in Lima, Peru on September 1, 2005, with the Vice-Minister of Energy and Mines and senior executives of Perupetro.

As previously advised, the License covers approximately three million acres and has a primary term of seven years with an agreed minimum work program of US $16.4 million, including the drilling of one well in year seven. The License is held 100 percent by Petrolifera, the operator. Connacher retains a 10 percent carried working interest through the drilling of the first well in exchange for its guarantee. The carried working interest is exchangeable into a two percent gross overriding royalty in certain circumstances, and Petrolifera has a right of first purchase of Connacher's interest in the License.

Connacher is a public Canadian company listed on the Toronto Stock Exchange under the symbol CLL. Its principal asset is a 100 percent interest in 68,480 acres at its Great Divide project in the Alberta oil sands. Connacher also owns 40 percent of and provides management services to Petrolifera. Petrolifera is a private company with interests in the Neuquen Basin, Argentina and in Peru.