Orleans Boasts 63% BOE Increase Over 2007

Orleans Energy Ltd. announced that the successful development of its Kaybob Montney natural gas "resource play" continues to enable the Company to generate strong quarterly production results. For the three months ended June 30, 2008 (Q208), Orleans achieved corporate average daily production of 4,020 barrels of oil equivalent (boe), surpassing the preceding quarter's record production yield of 3,784 boe per day. This level of production represents an increase of 63% over 2,460 boe per day attained in the comparable second quarter 2007 and an increase of 6% over the preceding first quarter 2008. The Company's natural gas sales for Q208 averaged 19.377 million cubic feet (mmcf) per day while crude oil and NGLs production averaged 790 barrels per day, resulting in a commodity weighting of 80% natural gas and 20% percent light gravity crude oil and NGLs.

The Company was able to maintain operational momentum through spring break-up by drilling two (1.36 net) horizontal wells at Kaybob on its western acreage block. Both wells were drilled from a common lease pad allowing for minimal surface lease disturbance and expedited tie-in subsequent to successful application of the "Packers Plus" completion technology. In July 2008, Orleans completed a six-staged fracture stimulation on one of the wells with 175 tonnes of proppant sand being displaced along the 590 meter horizontal leg. The well (0.68 net) recently flow tested at a gross raw production rate of approximately five mmcf per day (net 568 boe per day) and is presently shut-in for standard, downhole pressure test build-up. With respect to the second well (0.68 net), Orleans presently has a completion service rig on-site and intends to fracture stimulate the 508 meter horizontal leg with a six-interval, 200 ton gelled-hydrocarbon frac. On the eastern block of the Company's Kaybob acreage, Orleans recently drilled a Montney horizontal well (1.0 net) and is presently programming a multi-stage fracture stimulation. Thus far in 2008, Orleans has drilled seven (6.1 net) horizontal wells at Kaybob, four (3.1 net) on the western block and three (3.0 net) wells on the eastern block. Only two (1.7 net) of the drilled wells are presently on-production.

The Company's asset base at Kaybob encompasses 27.5 (25.0 net) sections of land. Prospectively, the Company intends to downspace with drilling densities of three horizontal wells per section on the majority of its lands. As a result, Orleans' current Montney drilling inventory consists of 30 primary locations with a potential total inventory of over 50 wells based on three wells per section. Presently, Orleans has only two sections of land where it is producing on reduced spacing from three wells. Of note, an exploration and production company has recently applied for downspacing approval of up to five wells per section on lands contiguous to Orleans' western Kaybob land block.

Elsewhere across the Company's diverse asset base, numerous drilling and re-completion activities are presently underway. At Gordondale, the newly-constructed infrastructure encompassing approximately 8.5 kilometers of pipeline was commissioned with production brought back on-stream on July 25, 2008. This field has been off-line since December 18, 2007. Gordondale provides the Company with approximately 250 boe per day of a light gravity crude oil and associated solution gas prospect in the Boundary Lake horizon. Orleans holds 20.5 sections (11.5 net) of contiguous Company-operated lands with rights generally to the base of Triassic.

At Gilby, the Company is presently drilling an Edmonton Sand well (1.0 net). Orleans has approval to drill on reduced spacing, up to four wells per section on 14.5 net sections of land, yielding a future drilling inventory of 40 Edmonton Sand wells. With regards to deeper reservoirs at Gilby, the Company has approval to drill on reduced spacing in the Mannville, providing for three wells per section in the Glauconite formation and two wells per section in the Lower Mannville formation, across eight sections of Orleans' land. In June 2008, the Company completed a 100% working interest gas well in the Ellerslie and Ostracod zones. This well was brought on-stream on June 21, 2008 at an initial "flush" production rate of approximately one mmcf per day (net 167 boe per day).

Second Quarter 2008 Financial Results

Orleans expects to release its financial results for the three-month interim period ended June 30, 2008 following TSX market close on Monday, August 11, 2008.



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