SOURCE: Radial Energy Inc.

January 29, 2007 16:30 ET

Radial Energy Advises on Positive Progress in Peru and Pending Negotiations in Colombia

HOUSTON, TX -- (MARKET WIRE) -- January 29, 2007 --Radial Energy Inc. (OTCBB: RENG) ("Radial" or the "Company") reports from Peru with favorable news as regards the recommencement of drilling operations at the Company's Huaya 100-1X well located in eastern Peru's Ucayali Basin.

Equipment manufacturer Atlas-Copco has advised the Company that the situation with the drill rig's power head has been identified and that a new and unused replacement gear assembly in excellent condition was located in Pennsylvania and has been shipped via expedited airfreight to Lima for installation under full warranty.

Radial wishes to advise that the partners in the project are in full accord and plan to move as quickly as possible towards the restart of operations. The Company advises to expect a brief delay of 7-10 days as the manufacturer will conduct a series of thorough tests in Lima prior to release of the equipment. As soon as the operator has been advised of the outcome of the repair, it is planned to proceed immediately in transshipping the equipment overland to coincide with the remobilization of the crew at the well site for reinstallation and subsequent field trials prior to recommencement of operations. Once drilling resumes, the Company plans to reach a target depth of approximately 950 feet within 3 to 5 days and then proceed to logging and production testing the Huaya 100-1X test, which targets an estimated 15.3 million gross barrels of trapped oil reserves classified by third party reserve assessments as Proved Undeveloped.

Management is pleased to announce that the Company has engaged Mr. David L Jagger to act as company representative overseeing field operations in Peru. Mr. Jagger brings over 28 years experience in the onsite supervision of drilling operations at remote locations. During his extensive career, he has worked on virtually every kind of operation and terrain including drill ships, jack ups, inland rigs, helicopter rigs, as well as jungle rig setups. He brings additional expertise working on surface, fluid, bottom-hole heat, and lost circulation control. His background includes overall supervision of the transport and rig up of all aspects of equipment on new well sites. He has worked under contract for numerous companies over the years in locations as diverse as Venezuela, Peru, Brazil, Spain, Algeria, and Chad as well as in the U.S.A. at operations in Colorado, Kansas, Nebraska, Oklahoma, Texas, and Wyoming.

In related news from Colombia, Management is continuing its discussions with Maxim Well Services Ltda. The talks center on plans for the recently acquired 20% working interest in the Bosques Block in central Colombia as well as further negotiations surrounding the proposed 20-37.5% working interest in the Canaguaro exploration and production block.

Company President G. Leigh Lyons comments, "Colombia holds great promise for our Company. The investment climate is stable with numerous incentives provided by both the private and public sectors. We intend to maintain our momentum and maximize the opportunities for growth this region presents. We are negotiating and developing plans on a number of issues currently, all of which are firmly focused on the pursuit of increased cash flow and asset value."

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.

Radial Energy Inc.

G. Leigh Lyons, President

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