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Press release from CNW Group

Connacher Determines Not To Pursue Unsolicited, Non-Binding Conditional Proposal

Tuesday, December 13, 2011

Connacher Determines Not To Pursue Unsolicited, Non-Binding Conditional Proposal07:30 EST Tuesday, December 13, 2011CALGARY, Dec. 13, 2011 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX and Alpha) announced today that its Board of Directors has determined not to pursue the unsolicited, non-binding and conditional proposal received from a third party to acquire all of the outstanding shares of the company. The Board determined, upon extensive and thorough deliberation and following receipt of advice from its financial and legal advisors, that the proposal was not compelling.Connacher continues to pursue its joint venture initiatives and to execute its previously enunciated business plan.About ConnacherConnacher is a Calgary-based energy company. Its primary asset is its 100 percent ownership of bitumen reserves and production from two steam-assisted gravity drainage ("SAGD") projects, Pod One and Algar, at its Great Divide oil sands lease block in northeastern Alberta. Connacher also owns conventional reserves, undeveloped land and production in central Alberta and owns and operates a profitable 9,500 bbl/d heavy crude oil refinery in Great Falls, Montana.Forward-Looking InformationThis press release contains forward‐looking information, including but not limited to, the joint venture initiatives being pursued by Connacher and the continued execution of Connacher's business plan. Forward‐looking information is based on management's expectations regarding future growth, results of operations, production, future commodity prices and foreign exchange rates, future capital and other expenditures (including the amount, nature and sources of funding thereof), plans for and results of drilling activity, environmental matters, business prospects and opportunities and future economic conditions. Forward‐looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to operational risks in development, exploration, production and start‐up activities; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks; the risk of commodity price and foreign exchange rate fluctuations; risks associated with the impact of general economic conditions; sales volumes and risks and uncertainties associated with securing and maintaining the necessary regulatory approvals and financing to proceed with the continued expansion of the Great Divide oil sands project. Additional risks and uncertainties are described in further detail in Connacher's Annual Information Form ("AIF") for the year ended December 31, 2010 which is available at www.sedar.com.Although Connacher believes that the expectations in such forward‐looking information are reasonable, there can be no assurance that such expectations shall prove to be correct. The forward‐looking information included in this press release is expressly qualified in its entirety by this cautionary statement. The forward‐looking information included in this press release is made as of December 13, 2011 and Connacher assumes no obligation to update or revise any forward‐looking information to reflect new events or circumstances, except as required by law.For further information: Richard A. Gusella Chairman and Chief Executive Officer OR Grant D. Ukrainetz Vice President, Corporate Development Phone:  (403) 538-6201           Fax:  (403) 538-6225 inquiries@connacheroil.com        Website:  connacheroil.com