SOURCE: Radial Energy Inc.

September 20, 2006 17:00 ET

Radial Energy Nears Start of Drilling in Peru

BELLINGHAM, WA -- (MARKET WIRE) -- September 20, 2006 -- Radial Energy Inc. (OTCBB: RENG) (the "Company") is pleased to announce that it has been advised that the drilling equipment slated for the Block 100 project in Peru has reached the upper reaches of the Amazon River System on its way to the drill site located on the Ucayali River.

The drilling rig, truck, bulldozer, two pipe skids and nine sea freight containers were shipped on the shallow-draft river steamer M/N "Yacu Puma" from Houston on August 14th. As of today, the shipment is in Leticia, Colombia at the Brazil-Colombia-Peru border. The equipment is being transshipped to barges and will leave Leticia on the 22nd for Iquitos, Peru, where it will go through Peruvian customs, after which a further five days travel is required to arrive onsite at the Company dock.

Because of low river water due to unusually dry seasonal conditions, the ship was lightered in the Amazon River at Leticia, where the equipment was placed on a string of barges headed upriver. The M/N "Yacu Puma" has its own cranes and has lightered its cargo on the Amazon under similar conditions on numerous occasions in the past.

The Company field camp is nearing completion and currently includes an office, kitchen, and living space for the field workers. A number of small warehouses for drilling fluid and cement storage are under construction, the river loading pipeline and a large storage tank for oil are soon to be completed, a 3.5 mile road from camp to the site is complete and the Huaya 100-1X drill site has been fully prepared for arrival of the equipment with a follow on period of 24 hours for rig up and commencement of drilling operations.

The Block 100 project is located within the Huaya Anticline area in the Ucayali Basin of eastern Peru and encompasses a seismically-defined structural "pop-up" closure with the potential for up to 41 very shallow well locations. A well drilled in 1984 by the Peruvian state-owned oil company on the down-dip flank of the primary reservoir tested 39 gravity oil.

At Radial's Huaya 100-1X location, a hole was recently dug to 4 meters in depth, which encountered the top of the Pozo Shale, which was found at 45 meters depth in the nearby Huaya 16-4X well that tested the oil in 1984. This is further confirmation of the structure at the site, and conforms to other surface geology results obtained on the block in November, 2005. With surface elevation considered, the top of the Pozo Shale is about 13 meters (40 feet) higher at the 1X location than at the 4X location.

Of economic consideration, there is an established oil market offering international prices and an existing transportation network with refineries nearby. If successful, the play indicates excellent economics, with international pricing, shallow drilling depths and initial production rates of between 200 to 800 barrels per day, per well based on results from the nearby Maquia Field which has produced approximately 17 million barrels of oil to-date, and is on the same anticlinal feature.

Company President, G. Leigh Lyons stated, "This project is moving along as planned, and we will soon be drilling our first well on the Huaya structure. With the surface geology conforming to the seismic interpretation, and with the confirmed tests of 39 gravity oil in the Huaya 16-4X well, a well we interpret to be downdip of our current drilling location, we are very excited about the potential success of our project. According to a probabilistic reserve assessment completed by Gustavson Associates a new field discovery could result in 21.8 million barrels in the most likely case, which would represent just over 4 million barrels net to Radial."

Additional news will be announced as soon as it becomes available.

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 highly prospective oil and natural gas plays 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, weren't 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, shrewd 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 may contain forward-looking statements. 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 general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund 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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