SOURCE: Galloway Energy Inc.

Galloway Energy Inc.

April 13, 2009 11:30 ET

Galloway Energy Signs MOU to Acquire West Texas Gas Production

RENO, NV--(Marketwire - April 13, 2009) - Galloway Energy Inc. (PINKSHEETS: GWGI) ("Galloway" or the "Company") today is pleased to announce it has entered into an agreement with Swiss-based resource management corporation Dominus Energy AG whereby Galloway has secured a first right of refusal to purchase 50% of Dominus' working interest in a large, gas production play located in West Texas.

Dominus has signed a Memorandum of Understanding ("MOU") with the vendor thereby securing Galloway's interest in the play subject to the results of an ongoing due diligence assessment. It is anticipated that a formal purchase and sale agreement will be executed by all parties within approximately 5 business days.

The Texas Gas Project currently consists of 22 existing production gas wells. The wells have tested in the 350 Mcf per day range. The project encompasses 10,000 gross acres and has the potential, if fully developed, to contain over 350 gas wells.

Galloway President Shane Lowry states, "We are very pleased to be participating in our first production scenario. A rapid tie-in of these four wells will make Galloway a cash flow positive Company in very short order and move us forward towards the goal of increased production in 2009."

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our energy properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.

ON BEHALF OF THE BOARD
Galloway Energy Inc.
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Shane Lowry
President and Chief Executive Officer

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