Orleans Energy Ltd.
TSX : OEX

Orleans Energy Ltd.

October 21, 2008 12:13 ET

Orleans Energy Announces New Board Member and Reaffirmed Bank Line

CALGARY, ALBERTA--(Marketwire - Oct. 21, 2008) - Orleans Energy Ltd. ("Orleans" or the "Company") (TSX:OEX) is pleased to announce the appointment of D. Michael G. Stewart, B.Sc., P.Eng., to the Board of Directors of Orleans. Mr. Stewart is a corporate director serving on the boards of Pengrowth Energy Trust, TransCanada Corporation, Canadian Energy Services Inc. (the general partner of Canadian Energy Services LP), and Northpoint Energy Ltd. Mr. Stewart is a native Albertan and a graduate from Queen's University in Kingston, Ontario in 1973 with a Bachelor of Science degree in Geological Sciences. He is a member of the Institute of Corporate Directors and the Association of Professional Engineers, Geologists and Geophysicists of Alberta.

Additionally, the Company announces that based on a recent semi-annual review of the borrowing base and facility amount associated with Orleans' operating credit facility with a Canadian chartered bank (the "Bank"), the Bank proposed an increase to the existing $65 million borrowing base of the operating line of credit. The borrowing base, which is re-determined semi-annually, represents the amount that can be borrowed from a credit standpoint based on, among other things, the Company's proved oil and gas reserves, results of operations, current and forecasted commodity prices and the current economic and credit environment, as confirmed by the Bank. Given Orleans' current strong financial position, with $30.6 million or 47% presently drawn against its operating line of credit, coupled with the universally higher fees associated with new and/or increased bank credit due to the current global credit crisis, the Company has elected to maintain its $65 million borrowing base and not increase it. As such, the Bank has reaffirmed the $65 million operating line of credit through to the next scheduled facility review in April 2009.

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.

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