Orleans Energy Announces Closing of Private Placement

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CALGARY, ALBERTA--(CCNMatthews - April 27, 2006) - Orleans Energy Ltd. ("Orleans" or the "Company") (TSX VENTURE:OEX) is pleased to announce that it has closed its previously announced bought deal private placement financing of 5,600,000 subscription receipts at a price of $5.90 per subscription receipt and 670,000 flow-through common shares at a price of $7.50 per share for aggregate gross proceeds of $38,065,000. Both the subscription receipts and the flow-through common shares are subject to a four-month hold period which expires on August 28, 2006. The underwriting syndicate for the private placement financing was led by Peters & Co. Limited and included GMP Securities Ltd., Tristone Capital Inc., Dundee Securities Corporation and National Bank Financial Inc.

Each subscription receipt represents the right to receive one common share of Orleans ("Orleans Common Share") on the closing of the Privateco acquisition, as announced on April 6, 2006. The proceeds of the subscription receipt component of the private placement have been deposited in escrow pending the closing of the acquisition of the majority of Privateco's shares. If the closing of the Privateco acquisition does not take place by 5:00 p.m. (Calgary time) on June 30, 2006 or the Privateco acquisition is terminated at an earlier time, holders of the subscription receipts will be entitled to a return of their full subscription price and their pro rata entitlement to the interest earned on the escrowed funds and the subscription receipts will be cancelled. The Privateco acquisition is anticipated to close during the first week of June 2006.

The net cash proceeds of the flow-through common share component of the private placement of this offering will be used by Orleans to incur Canadian exploration expenses prior to December 31, 2007 in the aggregate amount of $5,025,000, representing the gross proceeds from the flow-through issue. Orleans will renounce the expenditures for the fiscal year ended December 31, 2006 to the subscribers of the flow through common shares.

Filing of NI 51-101 Oil and Gas Disclosure

Orleans also announces that effective today, it has filed with the appropriate Canadian securities administrators its requisite documentation relating to National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), which includes information and reports concerning the Company's crude oil, natural gas and natural gas liquids reserves as at December 31, 2005. These filings can be retrieved electronically from the System for Electronic Document and Analysis and Retrieval ("SEDAR") by accessing Orleans' public filings under "Search Database: Search for Public Company Documents" at www.sedar.com.

Orleans Energy Ltd. is a Calgary, Alberta-based emerging crude oil and natural gas company, with common shares trading on the TSX Venture Exchange Inc. under the symbol "OEX". Orleans is a team of dedicated, experienced professionals focused on the creation of shareholder value via acquisition and development of crude oil and natural gas assets in Alberta.

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, 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, including the risk that the Privateco acquisition may not close as planned, 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 Inc. does not accept responsibility for the adequacy or accuracy of this news release. Orleans Energy Ltd.
Barry Olson
President & CEO
(403) 215-2941
Email: bolson@orleansenergy.com

or

Orleans Energy Ltd.
Dean Bernhard
Vice President, Finance & CFO
(403) 215-2945
(403) 261-8850 (FAX)
Email: dbernhard@orleansenergy.com
Website: www.orleansenergy.com

or

Head office:
Suite 1250, 521-3rd Avenue S.W.
Calgary, Alberta, T2P 3T3