Rally to Re-drill Safed Koh Well in Pakistan

Safed Koh Block, Pakistan
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Rally Energy Corp. late Tuesday issued an 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. Rally expects to spud the new location shortly. Calgary-based Rally Energy is an oil and gas exploration, development and production company whose 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.

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