Radius Resources Corp.
TSX VENTURE : RAX

July 09, 2008 16:41 ET

Radius Resources Announces Asset Sale

CALGARY, ALBERTA--(Marketwire - July 9, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Radius Resources Corp., ("Radius" or the "Company") (TSX VENTURE:RAX), is pleased to announce that today it closed the sale of its Kaybob property for gross proceeds of $3,000,000, prior to closing adjustments. The Company's Kaybob property included a 75% working interest in one producing gas well producing approximately 200 mcf/d (150 mcf/d net) of natural gas and a 100% interest in a compressor facility. The effective date of the sale is July 1, 2008.

Proceeds from the sale of the Kaybob property will be used to reduce the Company's working capital deficiency, reduce outstanding bank debt and will be directed towards the Company's CEE flow-through share spending obligation.

Radius Resources Corp. is a junior oil and gas company engaged in the exploration for, and development and production of, crude oil and natural gas focusing in the Peace River Arch region of central Alberta. The Company's shares trade on the TSX Venture Exchange under the symbol "RAX".

Forward Looking Information

This press release may contain forward-looking statements which may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statement of fact, including without limiting the generality of the foregoing statements made regarding the intended use of proceeds of the sale and more specifically the expenditure for Flow-through obligations. Although the Company believes that the expectations related in such forward-looking statements are reasonable it cannot give any assurance that such expectations will prove to be correct. The intended use of proceeds may be affected by the Company's ability to execute its exploration and development plans including determination of and acquiring appropriate drilling locations, retaining third party drilling services and timing of applications and approvals. As such the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties and may be based on assumptions that could cause actual results to differ materially for those anticipated or implied in such statements. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events results or circumstances or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this statement.

Contact Information

  • Radius Resources Corp.
    Mr. David R.P. Mears
    Chairman & CEO
    (403) 265-9393
    (403) 265-9224 (FAX)
    or
    Radius Resources Corp.
    Mr. Bruce Stewart
    Chief Financial Officer
    (403) 265-9393
    (403) 265-9224 (FAX)
    or
    Radius Resources Corp.
    Suite 520, 101 - 6th Avenue S.W
    Calgary, Alberta T2P 3P4