Orleans Energy Ltd.

Orleans Energy Ltd.

June 02, 2006 13:50 ET

Orleans Energy Announces Closing of Mercury Acquisition

CALGARY, ALBERTA--(CCNMatthews - June 2, 2006) - Orleans Energy Ltd. (TSX VENTURE:OEX) ("Orleans" or the "Company") is pleased to announce that it has successfully completed the acquisition of Mercury Energy Corporation ("Mercury"), pursuant to the previously disclosed plan of arrangement (the "Arrangement"). The Arrangement received unanimous approval by security holders of Mercury (including common shareholders, option holders and warrant holders) who voted at the meeting of its security holders held on May 30, 2006. Of the securities voted at the meeting, representing 95.1% of the total securities (including common shares, options and warrants), 100% were voted in favour of the Arrangement. Additionally, on June 1, 2006 Mercury received a final order of the Court of Queen's Bench of Alberta approving the Arrangement. In connection with the Arrangement, Orleans issued 1,623,719 common shares and paid approximately $9.8 million in aggregate cash to former security holders of Mercury.

Additionally, the previously disclosed offer to acquire all of the issued and outstanding shares of Morpheus Energy Corporation ("Morpheus") expires today, June 2, 2006, at 4:30 p.m. (Calgary time), unless withdrawn or extended. The acquisition of Morpheus is anticipated to close next week.

Orleans Energy Ltd. is a Calgary, Alberta-based emerging crude oil and natural gas company, with common shares trading on the TSX Venture Exchange Inc. under the symbol "OEX". Orleans is a team of dedicated, experienced professionals focused on the creation of shareholder value via acquisition and development of crude oil and natural gas assets in Alberta.

Certain information regarding the Company contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this news release.

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