Orca Exploration Announces $30 Million Bought Deal Private Placement Financing


    TORTOLA, British Virgin Islands, June 19 /CNW/ - Orca Exploration Group
Inc. ("Orca" or the "Company") is pleased to announce that it has entered into
an agreement with a syndicate of underwriter's lead by Haywood Securities Inc.
and including Research Capital Corp. (collectively the "Underwriters")
pursuant to which the Underwriter's have agreed to offer and sell, on a bought
deal basis, 2,173,900 class B common shares ("Common Shares") of Orca at a
price of $13.80 per Common Share resulting in gross proceeds of approximately
$30 million (the "Offering"). Orca has also granted the Underwriter's an
option, exercisable in whole or in part at any time until 24 hours prior to
the closing date, to purchase on the closing date up to an additional 326,100
Common Shares, on the same terms and conditions of the Offering. If the
Underwriter's option is exercised in full, the total gross proceeds of the
Offering will be approximately $34.5 million.
    Orca will use the proceeds of the Offering to enable it to secure new oil
exploration assets and for working capital purposes. The Company intends to
acquire two new oil opportunities before the year end.
    All sales will be made on a private placement basis pursuant to
exemptions from the prospectus requirements of applicable securities laws. The
issue is subject to customary conditions including receipt of all regulatory
approvals including the approval of the TSX Venture Exchange. Closing of the
Offering is expected on or about July 5, 2007.
    These securities have not been and will not be registered under the
United States Securities Act of 1933, as amended, or the securities laws of
any state, and may not be offered or sold in the United States unless an
exemption from registration is available. This press release does not
constitute an offer to sell or the solicitation of an offer to buy these
securities in the United States.

    Forward Looking Statements

    This disclosure contains certain forward-looking estimates that involve
substantial known and unknown risks and uncertainties, certain of which are
beyond Orca Exploration's control, including the impact of general economic
conditions in the areas in which Orca Exploration operates, civil unrest,
industry conditions, changes in laws and regulations including the adoption of
new environmental laws and regulations and changes in how they are interpreted
and enforced, increased competition, the lack of availability of qualified
personnel or management, fluctuations in commodity prices, foreign exchange or
interest rates, stock market volatility and obtaining required approvals of
regulatory authorities. In addition there are risks and uncertainties
associated with oil and gas operations, therefore Orca Exploration's actual
results, performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking estimates and, accordingly,
no assurances can be given that any of the events anticipated by the
forward-looking estimates will transpire or occur, or if any of them do so,
what benefits, including the amounts of proceeds, that Orca Exploration will
derive therefrom.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this Press Release.

For further information:

For further information: Nigel A. Friend, CFO, +255 (0)22 2138737,
nfriend@orcaexploration.com; Peter R. Clutterbuck, CEO, +44 (0) 7768 120727,

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Orca Exploration Group Inc.

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