Orleans Energy Ltd.

Orleans Energy Ltd.

February 24, 2005 10:29 ET

Orleans Energy Announces Closing of Bought Deal Equity Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ORLEANS ENERGY LTD.

TSX VENTURE SYMBOL: OEX

FEBRUARY 24, 2005 - 10:29 ET

Orleans Energy Announces Closing of Bought Deal Equity
Financing

CALGARY, ALBERTA--(CCNMatthews - Feb. 24, 2005) - Orleans Energy Ltd.
("Orleans" or the "Company") (TSX VENTURE:OEX) is pleased to announce
today the closing of its previously disclosed "bought deal" private
placement financing of 4,666,667 common shares of Orleans at a price of
$3.00 per share for gross proceeds of $14.0 million, which includes the
exercise in full of the underwriters' "greenshoe" option to purchase an
additional 666,667 common shares. The underwriting syndicate was led by
GMP Securities Ltd., and included Peters & Co. Limited and Tristone
Capital Inc. After giving effect to the equity offering, Orleans will
have 14,990,526 common shares issued and outstanding.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
common shares offered have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities
Act'), and may not be offered or sold within the United States absent
registration or applicable exemption from the registration requirements
of the U.S. Securities Act.

Orleans Energy Ltd. is a Calgary, Alberta-based emerging 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
via acquisition and development of crude oil and natural gas assets in
Alberta.

Not for distribution to United States newswire services or for
dissemination 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, 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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Orleans Energy Ltd.
    Barry Olson
    President & CEO
    (403) 215-2941
    (403) 261-8850 (FAX)
    Email: bolson@orleansenergy.com
    or
    Orleans Energy Ltd.
    Dean Bernhard
    Vice President, Finance & CFO
    (403) 215-2945
    (403) 261-8850 (FAX)
    Email: dbernhard@orleansenergy.com
    Website: www.orleansenergy.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.