Rally Energy updates on Pakistan drilling

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

    CALGARY, April 24 /CNW/ - Rally Energy Corp. would like to provide the
following update on its development drilling well at the Safed Koh concession
in Pakistan. After setting surface casing at 200 meters in the Dewan-5
development well, severe mud losses and emission of minor amounts of H2S gas
were encountered while drilling below the surface casing. These unforeseen
circumstances caused drilling progress delays, and combined with the drill
pipe being stuck in the hole, it was decided to plug and abandon the well at
shallow depth.
    A new well design and mud system is currently being recommended and the
well will be re-drilled on the same structure close to the original well bore.
We expect to spud the new location shortly.
    Re-drilling this well will not have any effect on the startup timing for
first gas production from the existing two wells. The operator advises that
production from the Salsabil gas plant is expected to commence during the
second quarter of 2007, upon finalizing the Gas Price Agreement pursuant to
the newly released 2007 Petroleum Policy.


    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.


                         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 material y 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 Ral y'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

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