SOURCE: Radial Energy Inc.

May 31, 2007 09:00 ET

Radial to Production Test Huaya 100-2X Well -- Updates Field Development Plans

HOUSTON, TX--(Marketwire - May 31, 2007) - Radial Energy Inc. (OTCBB: RENG) ("Radial" or the "Company") wishes to advise that it is preparing to mobilize for the production test of the Huaya 100-2X well after confirming a window of availability for Schlumberger and BJ Hughes crews and equipment to be moved to the site starting June 7th. The 2X well reached total depth of 305.1 meters (1,001 feet) on May 3rd and is part of the Huaya anticline which, according to a recent assessment provided by 3rd party engineers, shows the proved (P90) undeveloped reserves for the structure as 15,300,000 gross barrels of 39° API gravity oil.

Radial will initially test the Middle Vivian zone. This zone, from 275.0 to 280.0 meters, encountered a gas increase during drilling of 100-110 ppm, with very high resistivity, 24-29% porosity and a similar Density-Neutron response to the upper zone.

The operator plans to run into the hole with a 4 3/4-inch bit to 970 feet and then rig up Schlumberger and run the CBL/CCL logs from clean out depth to surface and set a packer at 790 feet. The well is planned to be perforated in the Middle Vivian zone from 888 to 895 feet (270 - 272 m). After installation of wellhead valves, pressure gauge, recorder, choke, and hook-up to production tank, the operator will flow test the well, recording volumes, oil/water percentages, and pressures.

The production test procedure is estimated to take 2 days. With a successful test of the Middle Vivian zone, the well will be prepared for production and the rig will then move to the Huaya 100-1X well to test the Upper Vivian zone.

The Upper Vivian zone was encountered in both the Huaya 100-1X and 2X wells, with electric logs indicating 14 and 12 feet of potential oil pay respectively. The 1X well reached final total depth of 282 meters (926 feet) on March 17th, and was logged by Schlumberger on March 18th. The well encountered the primary target Vivian Sandstone at 807 feet (318 feet below sea level). The operator reported that an oil bearing zone has been identified 246 to 250.2 feet, reporting strong, flowing, bright yellow oil fluorescence in the drilling mud, a gas show of 120 parts per million (ppm) over background gas of 30 ppm, and neutron density log interpretation indicating hydrocarbons. The oil water contact in the 1X and 2X wells correlates to the oil-water contact in the offset Huaya 4X discovery well (which production tested 39° API gravity oil), indicating reservoir communication between the three wells.

At the 1X well, 8-inch casing has been set to 425 feet and cemented in place. 4-1/2 inch casing and 2-inch production tubing, to be used for the production test, has been shipped and is scheduled to arrive at the port of Lima on June 10th. The operator intends to rig up on the 1X well as soon as possible after the production tests are completed on the 2X well.

According to Radial CEO, Leigh Lyons, "With the availability of our major service providers confirmed as of June 7th we are now ready to perform the production tests of the prospective zones in the Upper and Middle Vivian formation. In anticipation of successful tests, we have also begun plans to drill our third well, the Huaya 100-5X. Upon the drilling of that well, Radial will have accomplished its primary responsibility in the exploratory phase of the project and as such, the financial arrangements between Radial and its operator and partners shifts favorably downwards to where Radial will henceforth undertake only a proportionate share of capital costs to develop the field."

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.

The Company targets prospective oil and natural gas opportunities in historically productive regions with a 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.

ON BEHALF OF THE BOARD
Radial Energy Inc.
G. Leigh Lyons, President

Contact Information