Cruiser Oil & Gas Ltd.
TSX VENTURE : COG

Cruiser Oil & Gas Ltd.

September 27, 2005 19:44 ET

Cruiser Provides Operations Update

CALGARY, ALBERTA--(CCNMatthews - Sept. 27, 2005) - Cruiser Oil & Gas Ltd. (TSX VENTURE:COG) ("Cruiser" or the "Company") provides the following operations update;

Blackstone Area

Cruiser's first well in Blackstone, Alberta has resulted in a successful completion of a dual zone gas well. The 12-25 well is expected to produce 75 boepd gross from the Glauconite and Cardium formations and should be on production during October. As well, there is potential for additional Cardium follow up locations. Cruiser has a 20% BPO working interest and a 10% APO working interest in this non-operated prospect.

Also in the Blackstone area, Cruiser's joint venture partner plans on immediately moving onto a second location to re-enter and deepen an existing well in order to test bypassed gas potential in the lower Cretaceous Fm. Cruiser has a 50% BPO working interest and a 25% APO working interest in this well.

Hanlan Area

Re-entry operations in the 02/02-01 wellbore have been suspended by the operator as a result of downhole obstructions encountered in the deep liner at the bottom of the hole. As a result, the prospect remains unevaluated since none of the prospective zones were completed. Cruiser is currently reviewing options to sidetrack from the existing wellbore or redrill the well. Cruiser has a 50% before payout (BPO) working interest and a 25% after payout (APO) working in this well.

Ansell Area

During the fourth quarter, there are plans to drill a follow-up location to the Company's joint venture partner's new dual zone gas discovery in the area. This well will target Cretaceous gas zones in which Cruiser has a 40% BPO working interest and 20% APO working interest.

General

Cruiser currently anticipates additional drilling activity to occur during the 2005-2006 drilling season at its Deanne and Karr prospects. In addition, Cruiser is moving forward with its to plans to reactivate the South Swan Hills property and the drilling of its Pembina infill well.

Cruiser continues to review additional farm-in and acquisition opportunities in order to successfully grow the Company and increase shareholder value.

Cruiser Oil and Gas Ltd. is a public junior oil and gas company engaged in the exploration, exploitation acquisition and production of petroleum and natural gas in Western Canada. Cruiser is focused on re-entry and new drilling of multi-zone gas and oil prospects west of the fifth meridian.

Cruiser Oil and Gas Ltd. trades on the TSX Venture exchange under the symbol COG.

Cautionary Statements

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. The Company disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

Disclosure provided herein in respect of boe units may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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