RGY Rival Energy Ltd

RIVAL ENERGY LTD. (TSX VENTURE:RGY) is pleased to release its operating and
financial performance for the second quarter and first six months of 2007. For
this most recent quarter, Rival continued to post strong gains in average
production volumes and cash flow, despite a very challenging and competitive
corporate environment for all energy producers.




Highlights Table

                      Three Months Ended                 Six Months Ended
                           June 30                          June 30
                                   Percent                          Percent
Financial         2007        2006  Change         2007        2006  Change
----------- ----------- ---------- -------- ------------ ---------- --------
Oil & gas
 sales      $5,173,015  $3,894,658      33  $10,490,235  $7,527,674      39
Cash flow
 from
 operations  2,627,020   1,371,112      92    5,069,989   3,021,538      68
Net income     322,813      24,691    1207      390,283     298,069      31
Cash flow
 per share        0.12        0.07      68         0.23        0.15      51
Net income
 per share        0.01        0.00     N/A         0.02        0.02     (22)
Average
 shares
 outstanding
 (000)          22,349      19,809      13       22,332      19,809      13

Operating
 (6:1 BOE)
-------------
Average daily
 production
Natural gas
 (mcfd)          1,985       2,582     (23)       2,071       2,619     (21)
Oil and NGL
 (bblsd)           688         414      66          732         392      87
                                      -----                            -----
Barrels of
 oil
 equivalent
 (boe)           1,019         845      21        1,077         828      30

Average
 Sales Price
-------------
Natural gas
 ($/mcf)    $     7.43  $     5.85      27  $      7.50  $     6.72      12
Oil ($/bbl)      60.65       64.46      (6)       57.60       59.54      (3)



Q2 Highlights:

- Drilled one successful oil well and completed and tied-in two previously
drilled wells. These production additions replaced natural declines and flush
production from Rival's most recent Bellshill oil discovery (100%) during this
reporting period and enabled Rival to average 1019 boe per day through this
calendar quarter.


- Strong production growth, year over year, has enabled Rival to post
significant gains in oil and natural gas revenues and cash flow for this quarter
was up 92% over last year's second quarter.


- Actively developed additional drilling prospects during the first six months
of 2007 and are currently completing arrangements for an active exploration
program for the remainder of this year. The Company will participate in the
drilling of at least six wells and complete three significant seismic programs
to delineate additional oil prospects within its core areas of interest.


- On the natural gas side, seven drilling locations have been approved and
surveyed on the Company's Robsart and Morinville properties. These natural gas
targets will be drilled once natural gas prices have demonstrated improved
strength and stability.


Production and Operations Overview

Rival's production volumes remain at record levels and have remained at or above
2007 performance targets to date. The new volumes added through the Company's
limited capital program in 2007 has replaced flush production volumes and
natural declines throughout the first six months of the year. To date, Rival
remains on track with production volumes averaging 1077 boe per day (65% oil)
through the first six months of 2007. Current production is approximately 1040
barrels of oil equivalent per day.


As a result of these production numbers, Rival's oil and natural gas revenues
have increased significantly over the same period for 2006 and cash flows have
also showed significant growth. Revenues for Q2 2007 were up by 33% to $5.2
million (or 39% and $10.5 million for the six month period) and the resulting
cash flow for the Company was up by 68% to $2.6 million and this resulted in
cash flow per share of $0.12 for the second quarter, or $0.23 per share for the
first six months of the year. This strength in cash flow keeps Rival clearly
on-track to both strengthen its balance sheet through fiscal 2007 and achieve
its CFPS target of $0.40 for this calendar year.


To date in 2007, Rival has taken a conservative approach to its exploration and
capital spending activities. This position was taken during the first quarter of
this year due to concerns over the high cost of most oilfield service costs,
declining natural gas prices and a weakening equity market. To this end, Rival's
exploration activities for 2007 have been curtailed, but as average production
volumes continue to meet corporate forecasts, we remain confident the Company
will meet its corporate targets for calendar 2007.


Since adopting this strategy, Rival has observed a significant reduction in
almost all oilfield service costs and a major shift in the availability and
timing of the required services for all exploration and development activities.
Further, Rival's position on the natural gas market has provided it with a
"softer" landing as the Company hedged 50% of its natural gas volumes for the
summer months (April to November) and this position continues to have a positive
impact on corporate cash flow. Finally, at the expense of an expanded capital
program, Rival has taken the necessary steps to reduce its overall corporate
debt by at least one million dollars per quarter, believing a strengthened
balance sheet will be a significant benefit as we continue to invest in the
growth of the Company.


The next few months for Rival should be very rewarding. Over the past six months
the Company has dedicated capital and manpower to develop a drilling program
that will provide additional growth prospects from each success and provide
Rival with a meaningful presence in northern Alberta and the Peace River Arch.
These are areas Rival and its exploration team believe offer the opportunity for
significant growth and the economical addition of longer life, quality reserves
within an acceptable risk / reward profile.


Prospects in the Progress / Pouce Coupe areas of W6M will be undertaken within
the next 60 days and at least one well and additional 3D seismic will be
completed in the Culp area of northern W5M. These prospects are key to Rival's
growth plans as we move forward with our strategy for establishing a significant
presence in these new core areas.


In Rival's core area of east central Alberta, current plans call for
participation in an attractive horizontal drilling opportunity that is currently
being tested with a vertical test well. This play alone could deliver
significant growth to Rival through Q4 2007 and Q1 2008.


The Company also plans to shoot three 3D seismic programs in the Morinville,
Provost and Bellshill areas to delineate additional oil prospects for immediate
drilling. These contingent drilling locations will supplement a growing
inventory of prospects that Rival is developing. In conjunction with the
Company's shallow natural gas drilling program (surveyed and licensed) in the
Robsart area of Saskatchewan (5 wells) and the Morinville area of central
Alberta (2 wells), Rival continues to pursue an active capital program despite
the operational and financial challenges facing most junior oil companies at
this time.


Rival will continue to develop its inventory of prospects and adjust its capital
spending program to ensure we remain prudent and that our activity provides the
best benefit for our shareholders as we manage the Company's growth through the
current economic environment.


Company information applicable to Canadian securities regulations has been filed
on the Sedar system at www.sedar.com and the Company's website at
www.rivalenergy.com.


The term barrel of oil equivalent (BOE) may be misleading, particularly if used
in isolation. A BOE conversion ratio of six thousand cubic feet to one barrel is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.


This press release contains forward-looking information. Estimates provided for
2007 and beyond are based on assumptions of future events, and actual results
could be significantly different than these estimates. Events or circumstances
may cause actual results to be materially different from these predictions. The
reader is cautioned not to place undue reliance on this forward-looking
information.

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