Connacher Oil and Gas Limited is a Calgary-based crude oil and natural gas exploration, development, production and refining company. The company's principal asset is a 100 percent interest in approximately 98,000 acres of oil sands leases at their Great Divide project near Fort McMurray, Alberta. The company's 10,000 bbl/d Pod One steam-assisted gravity drainage ("SAGD") oil sands project commenced commercial production in March 2008, just four short years from first purchase of lands in the region and has already yielded over 3 million barrels of bitumen production.

Development of a second 10,000 bbl/d SAGD project ("Algar") was approved by the Energy Resources Conservation Board ("ERCB"), the Alberta Cabinet and other regulatory agencies in November 2008. Civil work on the site has now been completed and major long lead equipment items have been constructed. Completion of Algar will await improved economic conditions. During 2008, the company almost tripled its bitumen reserve base and expanded its resource base, laying the foundation for significant growth in the remainder of this decade and the next decade.

Connacher also owns conventional crude oil and natural gas production and reserves at Marten Creek, Randall, Latornell, Gilby and Three Hills, Alberta and at Battrum, Saskatchewan. They own and operate a 9,500 bbl/d heavy oil refinery located in Great Falls, Montana. Additionally, Connacher owns 22 percent of Petrolifera Petroleum Limited, a publicly-traded company listed on the TSX under the symbol PDP. Petrolifera owns crude oil and natural gas production and reserves and conducts exploration and development on its extensive acreage holdings in Argentina, Peru and Colombia in South America.

In pursuing its objective of maximizing shareholder value, Connacher secures large, operated working interests, where possible. Over time, a balanced portfolio of oil sands, conventional crude oil and natural gas production and refining capacity is being pursued. An opportunistic approach, supported by timely decisions, reflects management's experience and aggressive growth strategy to realize corporate objectives. Connacher pursues its objectives utilizing a conservative financial structure which reflects its asset base and which is designed to benefit shareholders.

Connacher's objectives and strategies are to:

Own and operate large working interests in oil sands and conventional oil and gas properties

Focus on projects characterizing expandability, repeatability and sustainability

Mitigate and manage risks of a smaller company in the oil sands with an integrated approach

Operate with financial discipline, maintain a high level of liquidity, and prefund major programs