UPDATE 1-Orleans Energy to raise C$20 mln in equity financing

* To sell 9.1 mln shares at C$2.20 each

* To use proceeds to reduce debt

June 10 (Reuters) - Canada's Orleans Energy Ltd OEX.TO said it would raise C$20.0 million ($18.17 million) by selling 9.1 million shares to a syndicate of underwriters co-led by GMP Securities and Peters & Co.

The oil and gas explorer will sell its shares at C$2.20 per share, a discount of about 6 percent to the stock's Tuesday closing of C$2.35 on the Toronto Stock Exchange.

The financing is expected to close on or about June 30, the company said in a statement.

The Calgary, Alberta-based company expects to use the net proceeds to reduce bank debt, and thus increase its borrowing capacity to fund drilling activities and its recently installed Kaybob pipeline project. ($1=1.101 Canadian Dollar) (Reporting by Swaha Sircar in Bangalore; Editing by Ratul Ray Chaudhuri)