Rally Energy Shareholders and Optionholders Approve Acquisition



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

    CALGARY, Sept. 17 /CNW/ - Rally Energy Corp. ("Rally") is pleased to
announce that at a special meeting held today, Rally's shareholders and
optionholders approved the proposed acquisition arrangement with Logria
Corporation (the "Purchaser"), an affiliate of Citadel Capital Company and
National Petroleum Company S.A.E. The final certified results of the vote are
as follows:

    
    -  99.2% of common shares voted in favour of the arrangement, 0.8% voted
       against. A total of 70,695,928 votes were cast, representing 61% of
       outstanding common shares.

    -  100% of options voted in favour of the arrangement. A total of
       6,949,233 votes were cast, representing all outstanding options.
    

    These totals exceed the required two-thirds of the votes cast on the
arrangement resolution by shareholders present in person or represented by
proxy at the special meeting, and shareholders and optionholders present in
person or represented by proxy at the special meeting voting together. As
previously announced, the arrangement will be submitted to the Ontario
Superior Court of Justice (Commercial List) for a final order of approval on
September 18, 2007. No registered shareholders exercised dissent rights with
respect to the proposed arrangement.
    The closing of the arrangement is expected to occur after the
satisfaction and/or waiver of all conditions precedent to the arrangement,
which is currently expected to be on or about September 21, 2007. Subject to
court approval, in order to facilitate closing, the plan of arrangement
implementing the arrangement has been modified to the effect that the funds
required to be deposited by the Purchaser to pay all cash consideration to
securityholders of Rally must arrive in the account of the depository for the
arrangement prior to the plan of arrangement becoming effective, rather than
at or prior to the first moment in time on the closing date.

    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. In
Pakistan, the Corporation holds a 30% interest in the Safed Koh Block, where
it is participating in the development of a natural gas/condensate discovery.

    
                       ------------------------------
                                   ADVISORY
    

    Except for statements of historical fact, all statements in this news
release - including, without limitation, statements regarding the Transaction
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 the arrangement; 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. Rally 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, or Douglas Urch,
Vice President, Finance & CFO, Tel: (403) 538-0000, Fax: (403) 538-3705

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RALLY ENERGY CORP.

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