Rally Energy Cases Potential Gas Well in PEI

Rally Energy Corp.'s Seaview #1 well, 18 km north of Kensington, on Prince Edward Island, has reached Total Depth of 1610 meters and is being cased as a potential gas well. Preliminary analysis of the electric logs indicate at least 30 meters of gas pay in several zones. The presence of gas in the well was confirmed by the gas detector while drilling. Current plans are to finalize analysis of the data from the well, design a completion program, perforate and flow test the well. Timing of the testing is dependent on the availability of equipment, but should commence within 3-4 weeks.

The Seaview well, drilled by Union Drilling Rig # 50, reached Total Depth of 1610 meters, 5 days faster than the previous fastest well drilled on PEI thereby reducing the projected cost of Rally's ongoing Prince Edward Island gas exploration program. Additional seismic is planned during August to delineate exploration well locations for possible drilling in the fall of 2003.

Rally has a 55% working interest and is operator of Block 96-06 on which the Seaview well is located. Partners include Shannon International Resources Inc. and CMB Energy Corp.