News release,

Connacher Sells Its Halfway Creek Interests

CALGARY, Sep. 30, 2011, 2011 (Canada NewsWire via COMTEX News Network) --

Connacher Oil and Gas Limited (CLL-TSX) announced today that following an auction process, it has sold its undivided 50 percent working interest in lands at Halfway Creek, Alberta, situated south of Fort McMurray, for a cash consideration of $26.8 million, before transaction costs. Proceeds will be added to working capital to reduce the company's net indebtedness. As a result, Connacher now has cash balances in excess of $75 million and anticipates monetizing other non-strategic assets, including the already-announced sale of its interests in Latornell and a timely sale of its shareholding in Gran Tierra Energy Inc.

RBC Capital Markets advised Connacher on the transaction.

Connacher is a Calgary-based company engaged in bitumen production using steam assisted gravity drainage ("SAGD") in situ recovery techniques at its Great Divide oil sands operation. The company is also engaged in oil resource development projects using long reach horizontal wells and multifrac completion technology in central Alberta at Twining and Penhold and owns and operates a profitable heavy oil refinery situated in Great Falls, Montana.

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