Orleans Energy Announces Bought Deal Equity Financing

Orleans Energy Ltd. has entered into an equity financing agreement on a "bought deal" basis. Pursuant to the terms of the Financing, Orleans will issue, on an underwritten basis, 7.0 million common shares at a price of $3.60 per share for total gross proceeds of $25.2 million.

The Financing will be led by GMP Securities L.P., on behalf of a syndicate of underwriters, (collectively the "Underwriters"). The Company will grant the Underwriters an over allotment option to purchase up to an additional 1,050,000 common shares at a price of $3.60 per common share for a period of 30 days from the closing date for additional gross proceeds of $3.78 million.

Orleans will use the proceeds of the Financing to fund its ongoing capital investment plans, including the continued exploration and development of Orleans' Kaybob Montney asset base, and for general corporate purposes.

The Financing is subject to customary regulatory and stock exchange approvals. The common shares will be offered in all provinces of Canada (except Quebec), by way of a short form prospectus, and in the United Sates of America on a private placement basis pursuant to exemptions from registration requirements.

The Financing is expected to close on or about March 13, 2008. After giving effect to the Financing, Orleans will have 45.62 million common shares issued and outstanding.