Rally Completes Sale of Canadian Properties
Rally Energy Corp. said that it has completed the sale of certain Canadian assets for a purchase price of $6.9 million ($5.0 million in cash and $1.9 million in equity from the purchaser), with an effective date of December 1, 2006.
Excluded from the sale, is the Corporation's recent gas/condensate discovery in Gold Creek and subsequent successful development well in the same area. Upon stabilization of production from this area, Rally will consider the Gold Creek property disposition next year.
Cash proceeds will be used for general working capital purposes related to activities in Egypt and Pakistan.
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.