Rally Energy closes $55 million equity financing



    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
    ANY UNITED STATES NEWS SERVICES/

    "RAL" - TSX Exchange  "RLE" - Frankfurt Stock Exchange

    CALGARY, March 13 /CNW/ - Rally Energy Corp. (the "Corporation") is
pleased to announce that it has closed its previously announced bought deal
equity financing with a syndicate of underwriters led by Wellington West
Capital Markets Inc. and including Westwind Partners Inc., D & D Securities
Company, Jennings Capital Inc., MGI Securities Inc., and Tristone Capital
Inc., pursuant to which the underwriters have agreed to purchase 10,000,000
common shares of the Corporation at $5.00 per Common Share to raise gross
proceeds of $50 million (the "Offering").
    The underwriters fully exercised their over-allotment option to purchase
additional shares from the Corporation and, accordingly, an additional
1,000,000 shares were issued at a price of $5.00 per share for additional
gross proceeds of $5 million, increasing the Offering to $55 million.
    Proceeds of the Offering will be used to fund the Corporation's
exploration and development programs in Egypt and Pakistan, for potential
acquisitions, and for general corporate purposes.
    Subsequent to this transaction, the Corporation has 113,530,494 shares
outstanding and 7,606,666 share purchase options.

    
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    Based in Calgary, Alberta, Canada, Rally Energy is an oil and gas
exploration, development and production company. The Corporation's primary
area of operation is in Egypt, where it has a 100% operating interest in the
Issaran oilfield, a significant heavy oil development opportunity with strong
growth potential. In Pakistan, the Corporation holds a 30% interest in the
Safed Koh Block, where it is participating in the development of a large
natural gas/condensate discovery.

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                         FORWARD-LOOKING STATEMENTS

    Except for statements of historical fact, all statements in this news
release - including, without limitation, statements regarding production
estimates, potential reserves and future plans and objectives of Rally - are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate; actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from anticipated results include risks and uncertainties most of
which are beyond Rally's control such as: risks relating to estimates of
reserves and recoveries; production rates and operating cost assumptions;
development risks and costs; the risk of commodity price and currency
fluctuations; general economic and industry conditions; political and
regulatory risks; environmental risks; stock market volatility; access to
sufficient capital from internal and external sources; and other risks and
uncertainties as disclosed under the heading "Risk Factors" and elsewhere in
Rally's documents filed from time-to-time with the Toronto Stock Exchange and
other regulatory authorities. The reader is cautioned that assumptions used in
the preparation of such information, while considered reasonable by Rally at
the time, may prove to be incorrect. The Corporation disclaims any intention
or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

     The TSX has neither approved nor disapproved of the contents of this
                                news release.
    




For further information:

For further information: Abby Badwi, President & CEO, Tel: (403)
538-0000; Douglas Urch, Vice President, Finance & CFO, Fax: (403) 538-3705

Organization Profile

RALLY ENERGY CORP.

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