Connacher announces $22 Million Flow-Through Share Offering


CALGARY (CNW) - Connacher Oil and Gas Limited (CLL-TSX) ("Connacher" or the "Corporation") has announced that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets under which Connacher will issue 15,200,000 flow-through common shares ("Flow-Through Shares") on a "bought deal" basis for gross proceeds of approximately $22 million ($1.45 per Flow-Through Share). Connacher has granted the underwriters an over-allotment option to purchase up to an additional 2,280,000 Flow- Through Shares on the same terms and conditions, exercisable in whole or in part up to 30 days following closing of the offering, for aggregate gross proceeds of approximately $25 million. The offering is scheduled to close on or about October 22, 2010.


Only 85 2010s


remaining


Connacher will use the gross 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 net proceeds will primarily be used to further delineate and define Connacher's oil sands properties through the drilling of additional core holes and for conducting a three-dimensional (3-D) seismic program over Connacher's oil sands properties. Connacher remains positive about, and committed to, the exploration of its oil sands acreage to enhance its reserve and resource base which is anticipated to support future bitumen production growth.


A preliminary short-form prospectus will be filed with securities regulatory authorities in all provinces of Canada except Quebec. The offering is subject to the approval of such securities regulatory authorities, in addition to approval by the Toronto Stock Exchange.


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.


Up to


$3300 cash 4 Clunkers


$ UP TO 10,500


2010 Chevrolet


1500 “Cheyenne Edition” Model CC10543


$25,719 + fees/GST


CLEARANCE PRICED


$


2010 Chevrolet 2500 Crew Cab Duramax 4X4 Model CK20743


$44,946 + fees/GST


CLEARANCE PRICED


$4 1-888-791-3310 • Medicine Hat, AB • www.murraychev.ca WESTERN CANADIAN PIPELINE | FALL 2010 11


41036942•10/29/10


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28