Orleans Estimates $8.6MM Potential Financial Exposure to SemCAMS

Orleans Energy Ltd. has estimated potential financial exposure of approximately $8.6 million to SemCAMS ULC, a Canadian subsidiary of SemGroup L.P., relating to the marketing of a portion of the Company's natural gas and natural gas liquids (NGLs) sales for the month of June 2008 and for 22 days in July 2008. The contract pertaining to the production volumes purchased by SemCAMS has been terminated and does not represent an ongoing exposure for Orleans.

SEMGroup, a U.S. based midstream and marketing company, filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. SemCAMS also filed for creditor protection in Canada under The Companies' Creditors Arrangement Act ("CCAA"). In its bankruptcy filings, SEMGroup listed assets of $6.14 billion and liabilities of $7.53 billion.

As of this date, Orleans is not able to neither determine the period within which nor quantify with certainty the portion of the exposure that will be ultimately collected from SemCAMS. However, the monetary exposure amount is not considered significantly material to Orleans' overall financial position nor is it anticipated to impair the Company's ability to fund its remaining 2008 capital expenditures program. Based on the Company's current market guidance projections, applying the full potential financial exposure, Orleans' year-end net debt-to-2008 cash flow from operations would remain under one times. As of the close of business on July 25, 2008, the Company had $17.68 million of bank debt drawn against its available $65 million operating credit facility in-place with a Canadian chartered bank.


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