Orleans Energy Ltd.

Orleans Energy Ltd.

June 30, 2009 09:17 ET

Orleans Energy Announces Closing of Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - June 30, 2009) -


Orleans Energy Ltd. ("Orleans" or the "Company") (TSX:OEX) is pleased to announce that it has closed its previously announced bought deal equity financing (the "Financing"). Pursuant to the Financing, Orleans issued 9,091,000 common shares at a price of $2.20 per common share for total gross proceeds of $20,000,200. The Financing was co-led by GMP Securities L.P. and Peters & Co. Limited on behalf of a syndicate of underwriters including National Bank Financial Inc., Dundee Securities Corporation, Thomas Weisel Partners Canada Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., and RBC Dominion Securities Inc. As a result of the Financing, Orleans has approximately 62.05 million common shares issued and outstanding.

All of the net proceeds of the Financing will initially be used by Orleans for general corporate purposes, specifically reducing amounts owing under its bank credit facility, which will be subsequently redrawn and applied as needed to fund the corporation's on-going capital expenditures, including the drilling of a new Montney exploration prospect on Orleans' thirteen (13) section contiguous Alberta Crown land block and additional development drilling of the Montney reservoir at Kaybob in West Central Alberta, both of which enable the Company to realize the drilling incentive credits introduced by the Alberta government in March 2009, and the additional capital incurred in connection with the recent installation of Orleans' strategic Kaybob pipeline project.

As a result of the closing of the Financing, Orleans presently expects to incur approximately $42 million in total capital expenditures in 2009 (net of the anticipated aggregate drilling incentive credits of approximately $2 million). The revised 2009 capital program now encompasses the drilling of a total of four (3.7 net) horizontal wells at Kaybob and one (1.0 net) horizontal on the aforementioned exploration land block, all focused on "resource capture" of the Triassic Montney formation.

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

The information in this news release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry ; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that the Company will derive from them. 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. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.

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