The following article appeared in the Calgary Herald on Wednesday, December29, 2010:

Connacher Oil and Gas sells Battrum play

Privately owned Hyak Energy pays $57.7 million for conventional oil properties

Calgary Herald December 29, 2010

Oilsands junior Connacher Oil and Gas sells conventional Battrum Saskatchewan property for $57.7 million to pay down debt.

CALGARY - Oilsand junior Connacher Oil and Gas Limited has sold its Battrum oil properties in Saskatchewan for $57.5 million to privately owned Hyak Energy, an affiliate of Accelerated Oil Technologies.

Production from the Battrum properties averaged approximately 700 barrels per day, at $82,000 per flowing barrel, the company said in a statement.

"Before adjustments for production since July 1, 2010, the consideration paid per proved and probable barrel of reserves was approximately $25 per barrel," Connacher said in a statement.

Proceeds from the sale, expected to close Feb. 15, will go toward reducing debt, Connacher said Wednesday.

The Calgary-based corporation had approximately $867 million in debt off revenues of $150 million, as of September 30.

Earlier this year, the company put on the auction block several of its Marten Creek and Randal conventional properties in Alberta at the same time it offered up the Battrum properties.

At the beginning of December Connacher said production reached 14,610 barrel per day at its Pod One and Algar thermal oilsands facilities in northern Alberta.

Shares of the company, which have increased 17 per cent in value this month on rising production, closed unchanged at $1.29 on the Toronto Stock Exchange.

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