Orleans Energy Ltd.

Orleans Energy Ltd.

November 12, 2009 09:19 ET

Orleans Energy Announces Closing of Bought-Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - Nov. 12, 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 3,125,000 flow-through common shares ("Flow-Through Shares") at a price of $3.20 per Flow-Through Share for total gross proceeds of $10,000,000. The Financing was led by National Bank Financial Inc., on behalf of a syndicate of underwriters including GMP Securities L.P., Peters & Co. Limited, RBC Dominion Securities Inc., Thomas Weisel Partners Canada Inc. and Research Capital Corporation.

All of the net proceeds of the Financing will initially be used by Orleans to reduce amounts owing under its bank credit facility, which will be subsequently redrawn and applied as needed to fund ongoing exploration activities eligible for renunciation as Canadian Exploration Expenses, which will be renounced to subscribers of the Flow-Through Shares effective on or before December 31, 2009. Orleans intends to both horizontally and vertically drill multiple Montney exploration prospects on two independent contiguous land blocks encompassing twenty-four (24) sections of land in the Greater Waskahigan area in west central Alberta.

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.

This news release is not for dissemination in the United States or to any United States news services. The Flow-Through 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, including the use of proceeds from the Financing and timing of renunciation of Canadian Exploration Expense. 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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