SOURCE: Radial Energy Inc.

January 16, 2007 16:10 ET

Radial Energy Reports on Completed Repairs and Projected Restart of Drilling at Peru Block 100 Oil Prospect

HOUSTON, TX -- (MARKET WIRE) -- January 16, 2007 -- Radial Energy Inc. (OTCBB: RENG) reports that repairs and replacement of drilling equipment at the Company's Block 100 oil project in Peru has been completed. Subject to final logistics, restart and completion of drilling at the Huaya 100-1X well is projected to begin as early as January 19th.

As announced in December, drilling of Radial Energy's first well on the Huaya Block 100 project reached a depth of 235 feet before experiencing mechanical problems that required a temporary suspension while parts were sourced and repairs were made. The operator reported that surface casing was set and cemented and the drill hole was in excellent condition.

Radial Energy has been advised that the fully repaired rig power head and hydraulic power units for the mud pumps were inspected and approved. The last of the equipment required for restart, they arrived on site on Sunday, January 14th. The drilling contractor is en route to the well. Reassembly of the rig will begin today with completion expected by January 18th. Once positive field tests are completed the remaining teams will return to the wellhead to commence drilling. Management believes drilling operations could resume as early as January 19th if events proceed as expected. 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.

Radial President G. Leigh Lyons commented: "We are pleased to report that the repairs have been completed and all of the equipment is on site for reassembly, enabling us to resume drilling operations at the Huaya 100-1X well in very short order. Preliminary mud log interpretation indicates that the well location is approximately 12.5 meters high to the original well drilled on the flank of the structure that production tested 38 API gravity oil from the top of the target Vivian formation reservoir, meaning that the well appears structurally in line with our geological prognosis. We are eager to get the bit back in the ground to conclude 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. We look forward to keeping shareholders apprised of our progress."

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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