SOURCE: Radial Energy Inc.

July 20, 2006 09:00 ET

Radial Energy Readies Drilling Equipment for Peru, Block 100 Prospect

BELLINGHAM, WA -- (MARKET WIRE) -- July 20, 2006 -- Radial Energy Inc. (OTCBB: RENG) (the "Company") is pleased to announce that the planned acquisition of drilling equipment slated for the Block 100 prospect in Peru has been completed, inspected and readied for shipment.

Radial's Chief Operating Officer, Omar Hayes, recently completed the inspection in Houston, Texas where the Ingersoll Rand drilling rig, off road bulldozer, rigup truck, winches and 9 containers of ancillary downhole equipment were undergoing final tests and crating for transport.

The site is located within the Huaya Anticline area in the Ucayali Basin of eastern Peru and is currently undergoing site preparations to receive the equipment and commence drilling. The shipment is scheduled for departure on August 2, 2006 with an approximate transit of 3 weeks to delivery. Drilling remains on schedule for September of this year.

The Company owns 67% percent of all equipment purchased and may elect to utilize the equipment on subsequent opportunities in the region.

Omar Hayes, Company COO, stated, "Our equipment requirements for this project have been completely met and everything is in excellent condition and ready for use. We look forward to getting on-site in a few short weeks and shifting this project into full swing. Given our recent announcement regarding the spud date in Texas, events are beginning to move quickly now and we intend to keep the momentum going."

Selected photos of the equipment can be found on the company's website at: www.radialenergyinc.com. Further information will be made available as it occurs.

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's first investment, the Huaya Anticline, Block 100, Peru project is an excellent example of the results of this strategy.

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.

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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