Rally Energy completes Pakistan acquisition



    "RAL" - TSX Exchange
    "RLE" - Frankfurt Stock Exchange
    www.rallyenergy.com

    CALGARY, March 6 /CNW/ - Rally Energy, through a wholly owned subsidiary,
has now closed the Purchase and Sale Agreement for the acquisition of an
additional 7.5% interest in the Safed Koh Concession in Pakistan, increasing
the Corporation's interest to 30%, as previously announced on October 24,
2006. All requisite Pakistan government approvals have been received and the
US$11.4 million purchase price was satisfied on March 2, 2007 by way of
US 8.55 million in cash and 1,372,846 common shares of Rally Energy Corp. The
shares were reserved for issuance in June 2006 at the then prevailing price of
$2.30 per share.
    At December 31, 2006, the Corporation's independent reserves evaluator
assessed this 30% interest as containing 12.7 million net BOE in the Salsabil
Field. This strategic acquisition represented a cost of $3.20/BOE for proved
and probable reserves and also increases the Corporation's exposure to large
prospective deeper untested zones in the Salsabil Field and to two large gas
prospects at Afiband and Zindapir, located immediately south of the Salsabil
Field.
    The Government of Pakistan recently announced that the gas price
applicable, expected to be US$3.47/MCF, will be governed by the proposed 2007
Petroleum Policy currently awaiting cabinet approval.
    Construction of the pipeline and gas plant is in the final stages of
completion. The operator has advised that first gas production will start on
March 21 at an expected rate of 15 to 20 MMCF/D (net 4.5 to 6.0 MMCF/D) from
two wells increasing to 60 MMCF/D (net 18 MMCF/D) by July 2007 following the
drilling of a third development well scheduled to spud within a week. The
development well is also designed to penetrate the deeper untested Sembar
sandstone that has the potential to double the reserves of the Salsabil Field.
Additionally, the Afiband and Zindapir structures will be tested by drilling
two high impact exploration wells, the first of which is scheduled to spud in
July 2007 and the second in early 2008. Abby Badwi commented that "these two
larger structures, with similar four-way seismically-defined closure as
encountered at Salsabil, have the potential to contain in excess of 2 TCF of
additional liquids-rich natural gas".

    
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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 operations 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,
www.rallyenergy.com

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RALLY ENERGY CORP.

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