Rally Updates Activities In Egypt

Source: www.oilegypt.com 8/9/2005, Location: Africa

With ongoing operational and planning activities in Egypt, the Company would like to provide the following update
Issaran oilfield sales averaged 2,624 BOPD in the second quarter of 2005, up 21.7% compared to first quarter 2005 average sales of 2,156 BOPD.
Second quarter average wellhead price at the Issaran oilfield was US$27.35 per barrel, up 24.9% compared to the first quarter 2005 average wellhead price of US$21.90 per barrel.
Three new oil wells were drilled during the second quarter and well completion programs have been approved by Egyptian authorities.
Workover and optimization design operations are continuing to improve production in several wells.
A global field development plan is being finalized and is to be presented for approval to Egyptian authorities on August 24, 2005 in Cairo. The global plan includes specific vertical and horizontal well locations for 2005, an outline of plans for 2006 and 2007 and details of plans for continuing evaluation of the Upper Dolomite thermal recovery pilot project.
Drilling plans for 2005 include the drilling of the first Company operated horizontal well.


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