SOURCE: Radial Energy Inc.

December 04, 2006 16:05 ET

Radial Energy Signs Bosques Block JOA in Colombia -- Updates Block 100 Project in Peru

HOUSTON, TX -- (MARKET WIRE) -- December 4, 2006 -- Radial Energy Inc. (OTCBB: RENG) wishes to advise that negotiations with Maxim Well Services Ltda. have successfully concluded and effective immediately, a definitive Joint Operating Agreement ("JOA") is in place.

The agreement encompasses the acquisition of a 20% working interest in and rights to explore and produce hydrocarbons in the Middle Magdalena Valley's Bosques Block where the Company intends to reactivate and maximize the Bosques Block's known production. Plans include testing and producing from the play's substantial untapped reserves. Management notes that the positive findings of a third party reserve assessment conducted by Boulder, Colorado-based Gustavson Associates were instrumental in Management's decision to move ahead.

Gustavson Associates has estimated that 1,100,000 gross barrels of proven oil reserves remain to be produced from a field on the block currently defined by two recently shut-in wells. Of these proven reserves, 550,000 barrels are classified as proved non-producing and 550,000 barrels classified as proved undeveloped.

Company President, G. Leigh Lyons comments, "Projects like the Bosques Block, and for that matter Huaya Block 100 in Peru, do not just happen. It takes a dedicated management team, executing a good, unique corporate strategy to identify, negotiate for, and acquire them. The Bosques Block is our first project in Colombia, and we are already working on several more exciting projects, one of which we have already received a reserve assessment on from Gustavson Associates, and based upon which we have decided to continue negotiations. We look forward to starting re-entry activities on the wells in the Bosques Block in early first quarter of 2007, and prior to that bringing you the news of the results of the Huaya 100-1X well."

In related news from the Huaya 100-1X drilling operation in Peru, Radial Energy wishes to advise that shortly after reaching a depth of 235 feet and setting surface casing, the operator advised Management that field operations require a pause needed to effect repairs to failed surface equipment. Due to the remote location and impaired condition of both primary and backup hydraulic apparatus, it was determined to ship the equipment to a Lima, Peru facility where repairs will be performed. Upon repair, the assembly will return to the site via expedited means. The operator reports that the hole is in excellent condition and drilling operations will recommence immediately upon return of the equipment.

According to a reserve assessment conducted by Gustavson Associates, the well will test for trapped oil reserves, including 15.3 million gross barrels of oil classified as Proven Undeveloped. The Company plans to reach a target depth of approximately 950 feet within 3 to 5 days upon recommencement of operations at which point logging and testing activities will begin.

The Company further wishes to note that due to a communications error, the press release of November 20th inaccurately indicated the depth of the well at 250 feet. The correct depth is 235 feet as reported November 27th. Management will provide further updates as they become available.

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 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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