Orleans Energy Ltd.

Orleans Energy Ltd.

February 22, 2008 12:11 ET

Orleans Energy Announces Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - Feb. 22, 2008) -


Orleans Energy Ltd. ("Orleans" or the "Company") (TSX VENTURE:OEX) is pleased to announce that it has entered into an equity financing agreement on a "bought deal" basis (the "Financing"). Pursuant to the terms of the Financing, Orleans will issue, on an underwritten basis, 7.0 million common shares at a price of $3.60 per share for total gross proceeds of $25.2 million. The Financing will be led by GMP Securities L.P., on behalf of a syndicate of underwriters, (collectively the "Underwriters"). The Company will grant the Underwriters an over allotment option to purchase up to an additional 1,050,000 common shares at a price of $3.60 per common share for a period of 30 days from the closing date for additional gross proceeds of $3.78 million. Orleans will use the proceeds of the Financing to fund its ongoing capital investment plans, including the continued exploration and development of Orleans' Kaybob Montney asset base, and for general corporate purposes. The Financing is subject to customary regulatory and stock exchange approvals. The common shares will be offered in all provinces of Canada (except Quebec), by way of a short form prospectus, and in the United Sates of America on a private placement basis pursuant to exemptions from registration requirements. The Financing is expected to close on or about March 13, 2008. After giving effect to the Financing, Orleans will have 45.62 million common shares issued and outstanding.

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

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction.

The common shares offered under the Financing will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States.

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, anticipations, 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 does not accept responsibility for the adequacy or accuracy of this news release.

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