Orleans Energy Ltd.

Orleans Energy Ltd.

July 12, 2007 09:23 ET

Orleans Energy Announces Closing of Equity Financing

CALGARY, ALBERTA--(Marketwire - July 12, 2007) -


Orleans Energy Ltd. ("Orleans" or the "Company") (TSX VENTURE:OEX) is pleased to announce that it has closed its previously announced bought-deal equity financing (the "Financing"). Pursuant to the Financing, Orleans issued 1.5 million flow-through common shares at a price of $5.45 per share and 2.8 million common shares at a price of $4.30 per share, for total gross proceeds of $20,215,000. The Financing was led by Orion Securities Inc., on behalf of a syndicate of underwriters including Peters & Co. Limited, Dundee Securities Corporation, GMP Securities L.P., Blackmont Capital Inc. and Tristone Capital Inc. (collectively, the "Underwriters"). The Underwriters received a fee equal to 5% of the gross proceeds raised in the Financing. In addition, the Company granted the Underwriters an option, exercisable for a period of 30 days following the closing of the Financing, to purchase an additional 420,000 common shares (representing 15% of the common shares issued pursuant to the Financing) at a price of $4.30 per common share on the same terms and conditions as the Financing, exercisable in whole or in part, to cover over-allotments, if any, and for market stabilization purposes.

Orleans will use the proceeds of the Financing to fund its ongoing capital investment plans, including the planned expansion of exploration and development capital activities at Kaybob in West Central Alberta, and for general corporate purposes. Proceeds from the flow-through share component of the Financing will be used to incur Canadian exploration expenditures prior to December 31, 2008, with such expenditures to be renounced to the subscribers of the flow-through common shares in the fiscal year ended December 31, 2007. Orleans presently now has 37,525,889 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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