Environmental Review Summary
Project Number
24660
Company Name
Rally Energy Corp.
Date ERS Disclosed
Feb 24, 2006
Country
Middle East, Pakistan, and Afg Region
Region
Middle East
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Apr 5, 2006
Signed : May 19, 2006
Invested : Jun 30, 2006
Sector
Oil and Gas Production (Includes Development)
Industry
other
Department
Gbl Infrastructure & Natural Resources
Project Description
Rally Energy Corp. (Rally or the company) is a Calgary-based Canadian oil and gas company, with interests in Egypt, Pakistan and Canada. Rally’s primary area of operations are focused in Egypt in the Issaran oilfield located along the western shore of the Gulf of Suez some 250 km south of Cairo. The company also has a non-operating interest in the Safed Koh gas/condensate concession area in central Pakistan to be developed and operated by Dewan Petroleum (Pvt.) Ltd. In western Canada, it has interests in a few small producing assets and exploration prospects.
Rally took over the exclusive right to operate and develop the Issaran concession in Egypt when it acquired Scimitar Hydrocarbons (Scimitar) in July 2002. In 1998, Scimitar entered into a Petroleum Service Agreement (PSA) to operate the field with the General Petroleum Company (GPC), a subsidiary of the national oil company the Egyptian General Petroleum Company (EGPC). Prior to 1998 the field was operated by GPC.
The Safed Koh block in Pakistan was awarded to Rally in 2002. In 2004 they sold the majority share to the Dewan group of companies but retained a 22.5% working interest in the block.
The company’s initial capital investment plan for 2005 to 2007 is focused on
- the ongoing heavy oil development and production program in the Issaran oilfield in Egypt, and
- development of the Salsabil gas/condensate field in the Safed Koh block and additional exploration within the block.
IFC is considering investments of up to $25 million, comprising loan facilities of $20-25 million, and possible equity/quasi-equity investments of up to $5 million, which Rally will use to finance its capital investment plan, working capital and other financing needs for these projects.
Rally took over the exclusive right to operate and develop the Issaran concession in Egypt when it acquired Scimitar Hydrocarbons (Scimitar) in July 2002. In 1998, Scimitar entered into a Petroleum Service Agreement (PSA) to operate the field with the General Petroleum Company (GPC), a subsidiary of the national oil company the Egyptian General Petroleum Company (EGPC). Prior to 1998 the field was operated by GPC.
The Safed Koh block in Pakistan was awarded to Rally in 2002. In 2004 they sold the majority share to the Dewan group of companies but retained a 22.5% working interest in the block.
The company’s initial capital investment plan for 2005 to 2007 is focused on
- the ongoing heavy oil development and production program in the Issaran oilfield in Egypt, and
- development of the Salsabil gas/condensate field in the Safed Koh block and additional exploration within the block.
IFC is considering investments of up to $25 million, comprising loan facilities of $20-25 million, and possible equity/quasi-equity investments of up to $5 million, which Rally will use to finance its capital investment plan, working capital and other financing needs for these projects.
