Orleans Energy Announces Mailing of Take-Over Circular

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CALGARY, ALBERTA--(CCNMatthews - April 28, 2006) - Orleans Energy Ltd. (TSX VENTURE:OEX) ("Orleans" or the "Company") is pleased to announce that it has mailed its previously disclosed offer to acquire all of the issued and outstanding shares of Privateco (the "Offer"). Shareholders of Privateco can elect to receive, for each Privateco share, either $2.75 in cash or 0.466 of a common share of Orleans ("Orleans Common Share"), or any combination of the foregoing, subject to $29,401,264 in cash being paid and 7,474,898 Orleans Common Shares being issued. This assumes that all outstanding options and warrants will be exercised. Orleans intends to finance the cash component of this acquisition with the proceeds of the bought deal private placement financing which closed on April 27, 2006. The Offer is open for acceptance until 4:30 p.m. (Calgary time) on June 2, 2006, unless withdrawn or extended. Included with the Offer is the Directors' Circular of Privateco in which the Board of Directors of Privateco have unanimously recommended that the holders of Privateco shares accept the Offer. The Privateco acquisition is anticipated to close during the first week of June 2006.

Update on Acquisition of Mercury Energy Corporation

Orleans would also like to provide an update on the previously announced proposed acquisition of Mercury Energy Corporation ("Mercury"). On Monday, May 1, 2006, legal counsel to Mercury will be making application for an interim order in connection with a proposed plan of arrangement. Mercury is seeking approval to hold a special meeting of shareholders on May 30, 2006 to approve the proposed plan of arrangement. It is expected that Mercury will mail an information circular to its shareholders in connection with the special meeting during the first week of May 2006. Closing is anticipated on or about May 31, 2006.

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 either or both of the acquisitions 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
Email: dbernhard@orleansenergy.com

or

Head office:
Suite 1250, 521-3rd Avenue S.W.
Calgary, Alberta, T2P 3T3
(403) 261-8850 (FAX)
Website: www.orleansenergy.com