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Radial Energy Announces Drilling Operations Advancing at Highway 79 Prospect

Posted on: Wednesday, 13 September 2006, 18:00 CDT

Radial Energy Inc. (OTCBB: RENG) (the "Company") announced today that drilling operations at the G.D. Staton Well No. 1, Highway 79 Prospect, Cherokee County, Texas, are proceeding on track and on schedule. Management is extremely pleased with the progress made to date.

Radial Energy has been notified by its operator, MLC Operating, L.P. ("MLC") of Houston, Texas, that drilling is advancing at the G.D. Staton Well No. 1. Drilling operations began on September 8, 2006 and drilling progress is ahead of schedule and currently at a depth of approximately 4,600 feet. The joint operating agreement between Radial and its partners contracts MLC to undertake the initial test well to a proposed depth of 4,950 feet targeting the 1, 2 & 3 Woodbine Sands, where internal studies have indicated a potentially net recoverable of 5.3 million barrels of oil and 1.68 billion cubic feet of natural gas from all three zones. Radial has a working interest participation in the prospect of 30% before payout and 22.5% after payout.

Radial Energy's Cherokee County prospects involve three separate exploratory oil and gas prospects located near Jacksonville, Texas. The G.D. Staton Well No. 1 on the Highway 79 play was the first to spud. The first exploratory wells on the Junction and NW Jacksonville prospects are scheduled to be drilled immediately following the completion of the Staton #1 well using the same drilling rig.

"G.D. Staton No. 1 is the first of four wells that we expect to drill by year end. At Radial Energy we pride ourselves on possessing the speed and agility to quickly identify and maximize opportunity. We acquired a working interest in the Cherokee County prospects in late June. Now, less than three months later, we have achieved the spud of our first well and drilling operations are proceeding on track. We are thrilled with what we have accomplished to date and excited to move forward with the tremendous growth opportunities we see before us."

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 three 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 highly prospective oil and natural gas plays 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, weren't 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, shrewd 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.

 ON BEHALF OF THE BOARD Radial Energy Inc. ---------------------- G. Leigh Lyons, President 

 Investor Relations Contact: J & J Investor Relations Inc. 1-888-795-2874 Visit our website at http://www.radialenergyinc.com

SOURCE: Radial Energy Inc.

Source: MARKET WIRE

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