SOURCE: Radial Energy Inc.

October 11, 2006 09:00 ET

Radial Energy Executes LOI to Explore for Natural Gas on 3,000 Acres in the Uinta Basin, Utah

HOUSTON, TX -- (MARKET WIRE) -- October 11, 2006 -- Radial Energy Inc. (OTCBB: RENG) is pleased to announce the signing of a Letter of Intent with KMV Utah, LLC and Advantage Resources, Inc. to participate in an Acreage Earning Agreement that they have obtained from a third party on approximately 3,000 acres of federal Wasatch/Mesa Verde formation leasehold interests.

According to the agreement, Radial shall commit to the drilling of a minimum of three wells in 2007 and three wells in 2008 to test the Wasatch/Mesa Verde formations. Radial will carry the parties for 37.5% interest in the first three wells; Radial will carry the parties for 12.5% working interest in the second three wells. Upon completion of the respective drilling obligations, the parties shall bear their 37.5% interest of all further wells, with Radial bearing the remaining 62.5% working interest.

The acreage is located in Uintah County near the Colorado border, approximately 6 miles north of the town of Bonanza and 35 miles southeast of Vernal, Utah. The wells will be drilled to an approximate depth of 8,500 feet to test the Mesaverde and Wasatch formations. With 40 acre spacing up to 75 wells may eventually be drilled on the acreage.

The major producing horizons in the region are the sandstones of the Mesaverde (Upper Cretaceous), Wasatch (Paleocene to Lower Eocene) and the shallow Green River sandstone and limestone reservoirs. The Mesaverde is 2,000 to 2,500 feet thick in the area, starting at about 6,000 feet of depth, and the overlying Wasatch is 2,000 to 3,200 feet thick.

The Coyote Basin project is considered by management to be a predictable, low-risk play with the focus on the application of the newest and best drilling and completion technologies to maximize the economics of producing the natural gas.

Radial President G. Leigh Lyons states, "The Uinta Basin represents one of the most exciting natural gas resource plays in the continental U.S. We have contracted Gustavson Associates to perform a reserve assessment on the acreage and look forward to sharing the results of that study with our stakeholders in the near future."

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 prospective oil and natural gas opportunities 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, 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 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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