Radial Energy Announces Latest Progress in Latin America and U.S.admin
Radial Energy Inc. announced the most recent developments in each of the Company’s oil & gas projects, detailing significant progress in Peru, Colombia, Texas and Utah. Radial Energy is focused on acquiring and developing overlooked and under-exploited oil and natural gas reserves in North and Latin America and is moving forward rapidly on multiple fronts.
Radial Energy reports the Huaya 100-1X well on its Block 100 oil project in Peru is expected to spud the week of November 20th. The Company owns a 20% working interest in this low-risk exploration and development opportunity with the potential for recoverable in-place gross reserves of between 15.3 and 29.5 million barrels of oil. The rig and equipment have arrived on site and been successfully tested. The crews are assembled and expect to commence drilling on the first of three wells shortly. Once the Huaya 100-1X well is completed Radial Energy has ten days to approve the drilling of the site’s 2X and 5X wells. The casing, well heads and tubing for the second and third wells are expected to arrive within a week.
The Company is also forging ahead in Colombia, where it is completing due diligence and continuing negotiations regarding the Bosques Block project, registering Radial Energy as an active oil & gas company in the region, operating a new field office in Bogota and pursuing new projects. As announced this week regarding the Bosques Block play, Radial Energy has secured a formal extension to the terms of its Letter of Intent (“LOI”) with Maxim Well Services Ltda. giving the Company through December 15, 2006, if needed, to complete its ongoing due diligence of the assets in advance of executing the definitive Joint Operating Agreement (“JOA”). Radial Energy is negotiating the acquisition of a 20% working interest in and rights to explore and produce hydrocarbons in the Middle Magdalena Valley’s Bosques Block, intending to reactivate and maximize the play’s known production and explore its potentially substantial untapped reserves.
In Texas, Radial Energy owns a 30% working interest in two exploratory oil and gas prospects in Cherokee County. The Company has made the decision to proceed with drilling of Campbell #1 well in the NW Jacksonville prospect based on Gustavson Associates’ final reserve assessment, which determined that 1.1 BCF of natural gas reserves are recoverable at the prospect in the most likely case. The independent reserve engineers have classified the reserves as Probable and consider the risk relatively low for that category. The Company has prepaid for the drilling and completion costs of the NW Jacksonville and Junction prospects. Once a new working interest partner is put in place Radial Energy expects to move quickly forward to the drilling phase.
Radial Energy reports that negotiations to acquire a 67.5% working interest in the Coyote Basin natural gas project in Utah continue. Coyote Basin is located within the Uinta Basin, one of the most exciting gas resource plays in the continental U.S. Gustavson Associates have completed their third party review of the natural gas reserves, with the corresponding economic forecasts pending the results of the on-going negotiations of the terms and conditions of the Company’s intended participation in the project.
“To date we have made major strides with each of our oil & gas projects, laying the groundwork for significant and sustained growth,” said Company President G. Leigh Lyons. “In a very short period of time Radial Energy has been able to create a great deal of positive forward momentum in Latin America and the U.S., and we look forward to hitting some significant milestones in the near future.”
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.
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.
ON BEHALF OF THE BOARD Radial Energy Inc. ———————-
G. Leigh Lyons, President
Contact: Investor Relations Contact: J & J Investor Relations Inc. 1-888-795-2874
Visit our website at http://www.radialenergyinc.com