ALTACANADA ANNOUNCES A RECAPITALIZATION

TSX-V SYMBOL: ANG

CALGARY, Nov. 29 /CNW/ - Our strategic process concluded in early November and resulted in the following plan to recapitalize.

AltaCanada has entered into a letter of understanding and has secured the agreement of its primary corporate lender and the holders of AltaCanada's subdebt to a series of transactions that will result in a reduction and extension of the senior debt and sufficient capital to service the Corporation's working capital requirements and to pursue drilling of the next several wells on the Corporation's Bakken play located in Northern Montana.

AltaCanada recently announced the encouraging results of its oil directed drilling program. AltaCanada drilled a Bakken test well under a farmout agreement with an industry partner and a joint venture with a recognized industry Bakken participant. That well which showed high porosity values and indications of both the generation of oil within the system and migration of oil through the system, has set up three additional wells that will be drilled on the play the first commencing in January, 2011. AltaCanada's share of the expenses of those wells will be 12% under the farmout to retain a 30% interest on a nine section earning block for each well on native lands. AltaCanada also participated in a Shaunavon well. Although that well came in structurally lower than anticipated it did produce oil and will hopefully lead to the drilling of additional Shaunavon prospects. These steps will result in a significant rebranding of the Corporation from a natural gas producer to a Bakken and Shaunavon oil exploration Corporation.

Key Elements of the proposed refinancing transactions are as follows:

1. Private Placements totaling a minimum of $4.5 million will be completed and subject to regulatory approval at $0.05/share to be raised as follows
   a. $1.5 million from our Montana partner
   b. $1.5 million from the board of directors, employees and insiders
   c. An additional $1.5 million (to $2.5 million) from third parties during December 2010
   
   
2. Subordinated debt holders have agreed to convert their subordinate debt totaling $4.3 million to a secured convertible debenture at the private placement price of $0.05/share.
   
   
3. Under the term sheet from our banker we will have a one year extension on our bank facility and requires paying down our senior debt from $7.975 million to $6.2 million.
   
   
4. Our Montana farmin partner will have a 6 month option to purchase AltaCanada's Canadian assets for cash proceeds on the full amount of the engineering value of those properties.
   
   
5. The remaining proceeds of the private placement will partially reduce trade payables and enable AltaCanada to pursue its drilling program.

After closing of all three proposed equity issues totaling $4.5 million, a total of approximately 258.0 million shares will be outstanding, the ultimate conversion of the subdebt. AltaCanada will have reduced total indebtedness from in excess of $18 million to $6 million over the past 6 months and positioned the company to move forward as an exploration company with prospects on almost 266,000 net acres of undeveloped lands in Montana.

Attached is a one page summary of key financial details with complete details contained in the full quarterly report, available from the Corporation or on Sedar.

The Corporation is engaged in the acquisition, exploitation and production of crude oil and natural gas reserves in Western Canada and Montana.  For more information on the Corporation, visit www.altacanada.com.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

HIGHLIGHTS
		Three Months		Nine Months
Period Ended September 30 (unaudited)		2010	2009	2010	2009
FINANCIAL
Total Revenue ($)		704,201	424,713	2,590,698	2,700,047
Cash Flow (Deficit) from Operations ($)		(519,934)	(258,154)	(1,448,483)	(979,470)
Per Common Share ($) - Basic/Diluted		(0.00)	0.00	(0.01)	(0.01)
Net Loss  and Comprehensive Loss ($)		(4,399,858)	(6,673,774)	(5,984,635)	(8,622,003)
Per Common Share ($) - Basic/Diluted		(0.03)	(0.09)	(0.06)	(0.12)
Capital Expenditures ($)		386,939	323,762	515,620	2,207,829
Net Debt at September 30 ($)		13,985,422	16,853,608	13,985,422	16,853,608
Shareholders' Equity at September 30 ($)		9,328,910	16,195,132	9,328,910	16,195,132
Total Assets at September 30 ($)		26,569,712	35,244,195	26,569,712	35,244,195
Common Shares - (weighted average for the period)
	Basic	168,003,760	74,381,538	107,681,416	74,381,538
	Diluted	168,003,760	74,381,538	107,681,416	74,381,538
Common Shares - (outstanding September 30)		168,573,310	74,381,538	168,573,310	74,381,538
OPERATIONS
Average Daily Sales:
	Natural Gas (Mcf/d)	1,466	1,918	1,495	1,986
	Oil and NGL (Bbls/d)	5	9	6	5
	Total (BOE/d)	249	329	255	336
	% Gas/Oil Ratio	98/2	97/3	98/2	99/1
Average Prices:
	Natural Gas ($/Mcf)	3.52	3.02	4.08	3.84
	Oil and NGL ($/Bbl)	51.29	26.75	56.00	41.12
	Total ($/BOE)	21.73	18.36	25.22	23.28
WELLS DRILLED
	Gross	-	-	-	5
	Net	-	-	-	2.7
Gross Success Rate (%)

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