SOURCE: Radial Energy Inc.

August 07, 2006 09:00 ET

Radial Energy Updates Recent Corporate Accomplishments

BELLINGHAM, WA -- (MARKET WIRE) -- August 7, 2006 -- Radial Energy Inc. (OTCBB: RENG) (the "Company") wishes to advise that all required financial obligations have been met to move forward with the drilling of the first well on the Block 100 project in Peru. The Company has also advanced the estimated net drilling and completion costs for the initial exploratory wells on each of the three Cherokee County, Texas prospects in preparation for the spud of the first well.

As previously announced in February of this year, the Company approved a private placement offering that closed upon the successful raise of $2,000,000.00 The proceeds have been put to effective use in the operations of the Company and directed primarily to the acquisition of its 20% working interest in the Huaya Anticline Project, Block 100 in Peru, and also facilitated the acquisition of the Cherokee County prospects where the Company enjoys a 22.5% (after payout) working interest in three separate exploratory oil and gas prospects located near Jacksonville, Texas.

The preparations for the drilling of the first well on the Block 100 project have advanced according to plan. In addition to the acquisition of its rights to a 20% working interest in the project, the Company is nearing completion of the field camp and loading dock at the site near the banks of the Ucayali River, and has gone on to purchase, test, pack and prep a complement of drilling equipment for shipment to the well site. A drilling rig, truck, and bulldozer will be transported to dock in Houston on Monday, August 7th. Nine containers plus two pipe skids arrive at the dock on Wednesday, August 9th. The loading of this equipment onto the ship at the Port of Houston is scheduled for August 12th with a targeted arrival on-site in Peru scheduled for approximately September 15th followed by a 24-hour period to rig up and spud the well. In related news: Management has now received final approval from PeruPetro (the national oil company) for the first three wells of the drill program as regards the well site specific drilling permits thus enabling the Company to move ahead rapidly and on schedule with its proposed planning and execution timelines.

The Cherokee County objectives: Highway 79, Junction and Northwest Jacksonville Prospects are each located near the town of Jacksonville in East Texas. The Company has approved and executed the AFE for the Highway 79 prospect where drilling will shortly commence on the Staton #1 well. The first exploratory wells on the Junction and NW Jacksonville prospects are scheduled to be drilled immediately following the completion of the Staton #1 well using the same drilling rig. Final negotiations are ongoing with surface owners to begin site work on those two prospects.

Company President G. Leigh Lyons stated, "We are extremely proud of our accomplishments to-date and to be moving ahead so quickly on such a variety of fronts. We intended to show by our actions and sound investments that our business model is truly effective just as we envisioned it. Our ability to move quickly allows us to seize on momentum from a number of factors including management expertise, solid partnerships, current economics and local opportunities that have combined to significantly further our goals of providing shareholder value through our rapid progress towards the creation of a what is increasingly likely in becoming a revenue positive junior oil and gas company within a relatively short period of time."

ABOUT THE COMPANY

Radial Energy seeks to identify, acquire and develop low risk oil and natural gas exploration and development opportunities throughout the Western Hemisphere. In addition to the United States and Canada, the Company is currently focusing on Peru and Colombia, as these countries represent what Management believes are regional first-tier competitive business prospects with tremendous investment incentives for oil and gas companies. Management has analyzed the business climate and believes that factors such as lower production taxes and government takes, alongside extensively improved civil and social conditions provide for significant opportunities with limited risk. The Company intends to remain flexible and will pursue opportunities as they arise in other stable, foreign investment-friendly countries, both regionally and elsewhere in the Americas.

The Company's primary focus is on efforts to identify previously drilled, but subsequently abandoned exploratory wells that encountered and/or tested live oil or natural gas indicating the presence of marketable hydrocarbons, reservoir and trap. If, after careful study, it is determined that low-risk potential for profitable field development exists, the Company will seek to acquire a working interest in the project, dealing either with the current concession holders or the local government.

The Company plans to become the operator of record in the majority of its future projects. Management intends to participate in new exploration prospects and old field development opportunities if such investments fit the economic criteria established by the Company.

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.

ON BEHALF OF THE BOARD

Radial Energy Inc.

G. Leigh Lyons, President

Contact Information

  • Investor Relations Contact:
    J & J Investor Relations Inc.
    1-888-795-2874
    Visit our website at www.radialenergyinc.com