Rally Energy Corp.

Rally Energy Corp.

July 18, 2005 15:54 ET

Rally Energy Corp. Appoints Abby Badwi, President and CEO

CALGARY, ALBERTA--(CCNMatthews - July 18, 2005) -

New President and CEO Appointment

The Board of Directors of Rally Energy Corp. (TSX VENTURE:RAL) (FWB:RLE) is pleased to announce the appointment of Abdel (Abby) Badwi as President and Chief Executive Officer of the Corporation, effective immediately. Mr. Badwi will also join the Corporation's board as a Director.

Mr. Badwi replaces Mr. Lamont Tolley who has resigned to facilitate this new appointment. In commenting on this new appointment, Mr. Tolley said: "The entire Board of Directors and management team at Rally Energy is delighted to have attracted Mr. Badwi to a key corporate position that meets our corporate needs so well. His international experience, combined with his enthusiasm about our growth prospects, will certainly enhance our desire to accelerate programs to develop our significant Egypt and Pakistan assets."

Mr. Tolley will remain with Rally Energy as a Director of the Corporation. Rally Energy's Board of Directors and management wishes to express its sincere thanks to Mr. Tolley for his substantial efforts and accomplishments over the past year. Under his guidance, the Corporation significantly strengthened the depth of its corporate management team and established a new vision for achieving significant sustainable growth in our corporate assets. One key element of that vision involved identifying an appropriate new CEO to drive the corporation's future growth initiatives.

Background: Mr. Abby Badwi

A geology graduate of the University of Alexandria, Egypt, Mr. Abby Badwi is an international energy executive with more than 30 years experience in the exploration, development, and production of oil and gas fields in North America, South America, Asia, and the Middle East. He has been an officer and director of several Canadian public and private companies including Managing Director of Arpetrol Inc., President and CEO of Geodyne Energy Inc., President and COO of Carmanah Resources Ltd., and Vice President International Exploration of Sceptre Resources Limited. He is currently a director of Arpetrol Inc., Gastar Exploration Ltd., Sustainable Energy Technologies Ltd. and Fairmount Energy Inc.

Commenting on his new appointment Mr. Badwi said: "To have the opportunity to be involved with Rally at this stage of its initiative to develop substantial assets under excellent fiscal terms in Egypt and in Pakistan is a welcome event. Rally Energy, with a large gas play in Pakistan and more than 400 million barrels of in-place oil at the Issaran field in Egypt is very exciting to me and I intend to move quickly to accelerate development initiatives in these countries as a priority goal. I have worked in Egypt and I have worked in Pakistan. In Egypt, I know the Issaran play, I speak Arabic and I know the culture. Combined with Rally's strong technical team, I am looking forward to developing the Egypt and Pakistan assets efficiently and economically".

Options Issuance and $1.0 Million Equity Private Placement

In connection with the new CEO appointment, the Board of Directors has authorized the issuance, to Mr. Badwi, of options to purchase 500,000 common shares at an exercise price of $1.32 per share. The new options vest over a period of one year with one-half vesting immediately. These options have been granted in accordance with the terms and conditions of the Corporation's stock option plan.

The Board of Directors has also authorized the private placement of $1.0 million in common shares, priced at $1.32 per share, to Mr. Badwi and friends and associates of Mr. Badwi. Mr. Badwi has already subscribed for $204,600 of this placement. This private placement is based upon exemptions from prospectus and registration requirements of applicable securities laws. No fees or commissions are being paid in connection with this placement. This placement is also conditional on receipt of required regulatory approvals and is expected to close prior to the end of July.

Debenture Conversions

To date in 2005, $4.7 Million of Rally Energy's 12% Convertible Debentures have converted to common shares at a conversion price of $1.00 per share. The remaining 12% Convertible Debenture principle amount outstanding is $1.3 Million. The conversion price for the remaining debentures is now $1.10 per share.

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 22.5% interest in the Safed Koh Block, where it plans to participate in the development of large natural gas/condensate discoveries. In Canada, Rally Energy is active in Alberta and Saskatchewan with varied working interests in several producing properties.


This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect the Corporation's operations or financial results are included in the Corporation's reports on file with Canadian securities regulatory authorities: www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Rally Energy Corp.
    Abby Badwi
    President & CEO
    (403) 538-0000
    Rally Energy Corp.
    Douglas C. Urch
    Vice President, Finance & CFO
    (403) 538-0000
    (403) 538-3705 (FAX)
    Website: www.rallyenergy.com