SOURCE: Radial Energy Inc.

September 18, 2006 16:10 ET

Radial Energy Approves AFE to Drill Campbell Well #1, Cherokee County, Texas

BELLINGHAM, WA -- (MARKET WIRE) -- September 18, 2006 -- Radial Energy Inc. (OTCBB: RENG) (the "Company") announced today it has approved the Authorization for Expenditure ("AFE") to commence drilling of the Campbell #1 well which will test the NW Jacksonville prospect for natural gas. The well is located in northern Cherokee County, Texas, and is scheduled to commence drilling in approximately 2 weeks at an estimated cost of $103,650 to Radial Energy based on the Company's 30% working interest in the prospect before payout, which will revert to a 22.5% working interest after payout of invested funds.

The primary target for the Campbell #1 well is the 1st Woodbine sand reservoir. According to a reserve assessment provided by Gustavson Associates, "The prospect is defined by good well control, with one well, the Gibson Francis #1 yielding gas and water in a drill stem test (DST) and showing six feet of gas pay on electric logs. Gustavson has interpreted the geologic structure to indicate the potential for the top of the Woodbine at the crest of structure being 20 feet updip to the top in the Gibson Francis #1, resulting in a possible 26 feet of gas column. The gas likely contained in this structure is not technically classified as Proved Undeveloped reserves, because no well penetrating the reservoir on this structure has tested at commercial rates. The reserves would thus be classified as Probable; however, the risk is considered relatively low for this category."

According to Gustavson, the probabilistic reserve estimates for the Woodbine #1 reservoir range from 0.8 to 1.4 BCF, with a most likely case of 1.1 BCF, including 2,200 barrels of condensate. Two thousand feet to the southeast an analogous trap (Jacksonville NW Field) produced 977,909 mcf of gas and 2,070 barrels of condensate from the 1st Woodbine sand.

The Campbell #1 well will also test the Woodbine #2 and #3 sands, which management has identified on the basis of internal geology and reserves estimates as having the possibility of reserves and production, especially the Woodbine #2 sand, which was productive in the nearby West Jacksonville Field.

In related news, MLC Operators LLC of Houston, Texas, who are undertaking drilling operations on the Texas projects, have advised the Company that based on results at the G.D. Staton well #1 that the partners, including management of Radial, have elected to commence plugging of the well due to significant water shows in the logs. The well, which was drilled to test the seismically defined Highway 79 prospect, encountered reservoir quality sand but came in structurally low to prognosis.

According to Radial President, Leigh Lyons, "The Campbell #1 well will test several Woodbine sands, with the #1 sand viewed by both management and our third party engineers, Gustavson Associates, as a low-risk test, classified as 'probable.' Of the three prospects making up the original Cherokee County Prospects, the soon-to-be drilled NW Jacksonville and Junction prospects are the most reflective of our corporate strategy for North America, which is 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."

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 three 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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