"RAL" - TSX Exchange
"RLE" - Frankfurt Stock Exchange
CALGARY, June 26 /CNW/ -
Rally Energy Corp. (the "Corporation") is pleased to announce that
approval has been received from the Government of Pakistan for an interim gas
price for the period up to November 30, 2007 and to start production
immediately from the Salsabil Field in Pakistan.
The Salsabil gas price will be US$2.81/MMBTU as governed by the
provisions of Petroleum Policy 2001. Until the amine plant installation is
completed during the third quarter, an 11% quality adjustment discount
pertaining to CO2 content will apply.
The operator of the Safed Koh concession expects to commence gas
production this week from two wells at an aggregate rate of 15 to 20 MMCF/d or
5 to 6 MMCF/d net to the Corporation.
WEST ISSARAN, EGYPT
The Corporation is also pleased to announce that it has completed the
drilling of two additional oil wells, for a total of four wells, in West
Issaran. The table below outlines net pay results in feet, by formation, for
the West Issaran area. Included in the discovery area is the Issaran - 24 well
drilled in 2003.
Upper Middle Lower
Wells Dolomite Dolomite Dolomite
----------------- ------------ ------------ ------------
West Issaran - 1 220 35 75
West Issaran - 2 78 0 0
West Issaran - 4 164 20 0
Issaran - 24 147 0 84
There was no hydrocarbon present in the Nukhul formation in all 4 wells.
The Corporation expects to drill the West Issaran - 3 well next month and
several delineation wells in the fourth quarter of 2007 to determine the
reserves potential of the West Issaran discovery.
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.
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
For further information:
For further information: Abby Badwi, President & CEO; Douglas Urch, Vice
President, Finance & CFO, Tel: (403) 538-0000, Fax: (403) 538-3705