SOURCE: Radial Energy Inc.

December 06, 2006 16:10 ET

Radial Energy Commits to Colombia

HOUSTON, TX -- (MARKET WIRE) -- December 6, 2006 -- Radial Energy Inc. (OTCBB: RENG) is pleased to report on the status of Management's visit to Colombia.

Management was impressed by the turnout and quality of industry professionals at the II Colombia Oil and Gas Investment Conference held at the Cartagena Convention Centre this week. In attendance were representatives from across the Americas and beyond. Major sponsors and presenters included representatives from the host country Colombia and included the Governments of Canada, the USA, several European and Asian nations as well as from every corner of Latin America and included corporate executives from ECOPETROL, ExxonMobil, Petrobras, bp, Oxy, Pacific Stratus Energy, Enbridge, Solana and many more. It was a truly global event with industry professionals arriving from every part of the world.

The major theme of the event, as promised by the organizers, is that Colombia is very much open for business; is receptive and supportive towards the development of numerous opportunities both individually and jointly, with corporations and institutions, to take advantage of Colombia's significant undeveloped oil and gas reserves estimated at 1.8 billion barrels with potential reserves of up to 47 billion barrels, and proven natural gas reserves estimated at 7.5 trillion cubic feet. The national oil company ECOPETROL and the ANH are publicly on record as being highly interested in local joint venture opportunities and the Country boasts a large base of experienced and skilled industry workers.

Against this background, Company Management undertook an exceptionally packed agenda attending meetings with numerous officials and representatives of companies with an eye towards developing favorable relations and future endeavors. Management also held important meetings in Cartagena with its Colombian legal and financial teams who are actively reviewing, in tandem with U.S.-based reserve group Gustavson Associates, several assets for potential acquisition and participation.

As reported previously, the Company successfully concluded its negotiations this week with Maxim Well Services Ltda. as regards the execution of the definitive Joint Operating Agreement ("JOA") and acquisition of a 20% working interest in the Middle Magdalena Valley's Bosques Block where the Company plans to reactivate and maximize the Bosques Block play's known production and potential significant untapped reserves.

Company President and CEO, G. Leigh Lyons stated, "Underpinned by the significant improvements in the social, political, and economic climate in the country, Colombia is committed to the rapid growth of national oil and gas reserves and corresponding production levels, and is again attracting the participation of independent and major energy companies in the oil and gas sector. Based on the results of this trip, our recent signing of the Bosques JOA is, we believe, the first of many Colombian projects in which we will participate."

About Radial Energy Inc. (OTCBB: RENG)

Radial Energy identifies, acquires and develops low risk oil and natural gas exploration and development opportunities throughout the Americas. The Company's innovative strategy involves targeting overlooked or under-developed reserves that are under the radar of multinational oil companies and out of the reach of small independents.

Radial Energy has rapidly assembled an impressive portfolio of oil and gas plays including working interests in two separate oil and gas prospects located in Cherokee County, Texas, as well as in the Block 100 oil project located within the Huaya Anticline area in the Ucayali Basin of eastern Peru. The Company has also executed a Letter of Intent to acquire rights to explore and develop oil reserves on the Bosques Block play located in the prolific Middle Magdalena Valley of Colombia. The Company targets prospective oil and natural gas opportunities in historically productive regions with a primary focus on identifying previously drilled but undeveloped exploratory wells that, due to factors at the time of initial drilling, including the absence of pipeline infrastructure, lack of modern recovery technology, poor geological or engineering interpretation or low oil and gas prices, were not fully exploited.

Radial Energy is led by a highly motivated team of industry veterans with proven expertise in North, Central and South American oil and natural gas development. Bolstered by first-rate management, farsighted acquisitions, the speed and agility to take advantage of changing market conditions, a firm commitment to building value for shareholders and the growing demand for energy worldwide, Radial Energy is taking maximum advantage of a tremendous opportunity to develop overlooked and under-developed oil and gas reserves in North and South America.

Forward-Looking Statements

Except for statements of historical fact, the information presented herein contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include the statements regarding the Company's expectations, hopes or intentions regarding the future. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include the ability to successfully drill and complete wells such as the Huaya 100-1X well, general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund future operations, and changes in consumer and business consumption habits and other factors over which Radial Energy Inc. has little or no control.


Radial Energy Inc.

G. Leigh Lyons, President

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