Orleans Energy Ltd. Announces Bought Deal Private Placement

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CALGARY, ALBERTA--(CCNMatthews - Oct. 27, 2006) -

This news release is not for dissemination in the United States or to any United States news services.

Orleans Energy Ltd. ("Orleans" or the "Company") (TSX VENTURE:OEX) is pleased to announce that it has entered into an agreement with Peters & Co. Limited, on behalf of a syndicate of underwriters, including GMP Securities L.P., Dundee Securities Corporation, Tristone Capital Inc. and Blackmont Capital Inc., to raise approximately $15.1 million through a bought deal private placement of 2,630,000 flow-through common shares at $5.75 per share.

Orleans will use the proceeds of the offering to incur Canadian exploration expenses prior to December 31, 2007. Orleans will renounce the expenditures to subscribers for the fiscal year ended December 31, 2006.

The offering is subject to customary regulatory approvals and is expected to close on or about November 14, 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.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction.

The common shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States.

Certain information regarding the Corporation 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 Corporation 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 Corporation '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

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