Connacher Oil & Gas Ltd CLLZF

Connacher Oil and Gas Limited files Great Div

[lkcfan]

Connacher Oil and Gas Limited files Great Divide application /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ CALGARY, Aug. 17 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX) announced today that it has submitted an application for the Great Divide Oil Sands Project to the Alberta Energy and Utilities Board (EUB) and Alberta Environment. Connacher Oil and Gas Limited is a Calgary-based Canadian oil and natural gas exploration and production company. The company's principal asset is a 100 percent interest in 107 sections (68,480 acres) of oil sands leases, situated 80 km. south of Fort McMurray, Alberta. Connacher is proposing to develop the resources in a steam-assisted gravity drainage (SAGD) project called Great Divide. SAGD is a proven technology that involves drilling horizontal wells and constructing a processing facility that separates oil and water, generates steam and recycles water. Connacher's management and technical teams have direct experience with this technique. It is expected the Great Divide accumulation which is to be developed will produce up to 1,600 m3/d (10,000 bbl/d) of bitumen over a design life of 25 years. Accordingly, this proposed SAGD operation is estimated to recover about 14 million m3 (90 million barrels) of bitumen. Start-up is planned for the fourth quarter of 2006, subject to EUB and Alberta Environment approvals. Produced bitumen will be diluted and delivered to a third-party pipeline for shipment to refinery markets in Canada and the United States. Engineering and construction will provide an estimated 900 to 1,000 person-years of total direct, indirect and induced employment in the province during the construction phase while ongoing project operations should generate 60 to 70 person-years of annual employment. Over the project life, a significant royalty will also be payable to the Province of Alberta. Connacher has already initiated a public consultation process to seek ideas and feedback from area residents and other stakeholders. Forward-Looking Statements: Except for statements of historical fact relating to the Company, this press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are 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 statements. These factors include the inherent risks involved in the exploration and development of oil sands properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating oil prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Certain information regarding the Company in this news release, including future development plans, anticipated expenditures and anticipated production capacity constitute forward-looking statements under applicable securities law. As an oil sands enterprise in the development stage, the Company faces risks, including those associated with exploration, development, regulatory approvals and the ability to access sufficient capital from external sources. As a consequence, actual results will differ, and may differ materially from those anticipated in the forward-looking statements. The Company 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. For further information: Richard A. Gusella, President and Chief Executive Officer, Phone: [phone], Fax: [phone], Website: www.connacheroil.com, Email: [e-mail]