Cruiser Oil & Gas Ltd.
TSX VENTURE : COG

Cruiser Oil & Gas Ltd.

October 27, 2006 18:26 ET

Cruiser Reports Drilling Success at Willesden Green

CALGARY, ALBERTA--(CCNMatthews - Oct. 27, 2006) - Cruiser Oil & Gas Ltd. ("Cruiser" or the "Company") (TSX VENTURE:COG) is pleased to announce it has achieved drilling success at its operated Willesden Green property in which it has a 75% working interest before payout (45% working interest after payout). The Willesden Green 06-35 well was drilled to approximately 2530 m depth. The well encountered two commercial zones which have been tested individually. The total of the last recorded rates for both zones is approximately 645 mcfd and 130 bpd of liquids or approximately 237 boepd gross (178 boepd net to the Company). At the early stage of production, it is difficult to anticipate the stabilized production levels. The Company acknowledges the reserves analysis and assignment of volumes given to such new wells, however, the Company believes that absolute recoverable reserve volumes may be less than expected, with such belief made clearer once there is sufficient well production history to shift from a volumetric assessment to a decline curve assessment. As a result of the encouraging test rates, Cruiser will proceed with the tie-in of this well and prepare a commingling application to produce both zones simultaneously as soon as possible.

Cruiser is currently formulating subsequent development plans for this property, including considering future drilling locations in order to earn the balance of the land and to fully optimize the property. The Company has the potential to earn 3.75 sections at this time.

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.

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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