Rally spuds new Salsabil development well in Pakistan

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

    CALGARY, March 15 /CNW/ - Rally Energy Corp. is pleased to announce that
the Dewan-5 development well spudded on March 11, 2007 in the Salsabil
development lease using a new Chinese rig ZP900. Total target depth is
3,200 meters, a depth sufficient to penetrate the productive Lower Goru sands
and continue to the prospective Sembar and Chiltan formations. It is estimated
that the well will take 65 days to reach total target depth and up to an
additional 30 days of evaluation and testing which may include stimulation.
    Dewan-5 is the third well in the Salsabil field located on the Safed Koh
concession in Pakistan where the Corporation's working interest is 30%. The
Dewan-5 location is an offset to the Dewan-2 gas well, which production tested
at rates of 10 MMCF/D, restricted by the size of tubing. The new Dewan-5
location is designed to allow maximum tubing size in the producing horizon
Lower Goru Formation and in the prospective Sembar sandstones.
    We are also pleased to confirm that the operator has advised that we are
on schedule for commencement of commercial gas production later on this month
at an expected rate of 15 to 20 MMCF/D (net 4.5 to 6.0 MMCF/D) from two wells
Dewan-1 and 2 increasing to 60 MMCF/D (net 18 MMCF/D) by July 2007 following
the drilling and tie-in of the Dewan-5 development location.

    
                   ----------------------------------------
    

    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 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;