Galaxy Energy Corporation Files for Bankruptcy Court Protection

DENVER, March 17  /PRNewswire-FirstCall/ -- Galaxy Energy Corporation (AMEX:GAX) and its wholly-owned subsidiary Dolphin Energy Corporation announced today that it has filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Colorado.  The Company will remain in control of its assets and intends to continue to conduct business as usual while it devotes renewed efforts to resolve its liquidity problems and develops a reorganization plan.

About Galaxy Energy

Galaxy Energy Corporation, a development stage oil and gas exploration and production company, focuses its operations in the Powder River Basin of Wyoming and the Piceance Basin of Colorado, in addition to exploration activities in Germany and Romania. Galaxy conducts its exploration activities through two wholly owned subsidiaries, Dolphin Energy Corporation and Pannonian International, Ltd.

Forward Looking Statement

This press release consists of forward looking statements regarding the intent, belief or current expectations of Galaxy and its management. Prospective investors are cautioned that any such forward looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and actual results could differ materially from those indicated by such forward looking statements. Galaxy assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise. Please refer to Galaxy's filings with the United States Securities and Exchange Commission for discussions of risks and uncertainties found in Forms 10-K (annual report), 10-Q (quarterly report) and other filings.

Additional information may be found at the Galaxy Energy Corporation Web site, http://www.galaxyenergy.com/ or by calling Brad Long, Investor Relations/Galaxy Energy at [phone] or Bevo Beaven or Warren Laird of CTA Integrated Communications at [phone].

   CONTACT:  Bevo Beaven, Warren Laird
   CTA Integrated Communications
   [phone]


DATASOURCE: Galaxy Energy Corporation



CONTACT:  Bevo Beaven, or Warren Laird, both of CTA Integrated

Communications, [phone], for Galaxy Energy Corporation



Web site:  http://www.galaxyenergy.com/ 

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