Radial Energy Signs LOI to Acquire Rights at Bosques Block Project in Colombia Tuesday August 29, 9:00 am ET
BELLINGHAM, WA--(MARKET WIRE)--Aug 29, 2006 -- Radial Energy Inc. (OTC BB:RENG.OB - News) (the "Company") wishes to advise that on August 24th, 2006 the Company executed a Letter of Intent ("LOI") with Maxim Well Services Ltd. ("Maxim") to acquire rights to explore and develop oil reserves and production on the 9,000 hectare (22,239 acre) "Bosques Block" located in the prolific Middle Magdalena Valley of Colombia. ADVERTISEMENT
The Company has acquired a 20.0% working interest in the block in return for 2.2 million dollars to be paid in stages beginning after the execution of a joint operating agreement (JOA), which is expected to be signed within 45 days. In addition, the company is entitled to 33.3% of the revenues from the production of oil following the reactivation of two wells until payout of 1.5 million dollars of the original investment.
The concession is described as an "Exploration and Production Area" with approximately 3,000 hectares within the block already designated as "commercial." According to Maxim, the wells have produced 1.08 million barrels and the Company believes that 2.2 to 3.8 million barrels remain to be recovered based on expected oil recovery factors for the Tertiary reservoir. The Company and its new partners intend to reactivate the wells by workovers of the existing zones and by perforating new intervals in the Tertiary formations with higher density perforations. Maxim's internal estimates show combined producing rates after reactivation are 300-400 barrels of oil per day.
The field was discovered in 1957 by Shell Oil. Nine (9) total wells were drilled on the block. Several of the wells tested oil and/or had shows of oil in the Tertiary formations.
The Company has engaged Gustavson and Associates to review the asset and provide a reserve report and assessment of the property. Maxim is transferring all information and data regarding the block to Gustavson and will be sending a team to Gustavson's offices in Boulder within one week to assist in this work.
Company President, G. Leigh Lyons, states, "We are pleased to continue our strategy for Latin America, and especially pleased to enter into Colombia with the acquisition of such a high potential area. The Bosques Block not only offers early cash flow opportunities but also displays tremendous exploration opportunities in the Tertiary and Cretaceous formations. The Cretaceous targets in particular are very exciting, seismically-defined closures in an oil and gas rich basin, famous for having one of the most prolific oil source rocks in the world (La Luna). The Cretaceous play has gained momentum with a discovery well drilled by Ecopetrol to the northeast of our block last year with an estimated 34 million barrels of high quality oil recoverable."
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Radial Energy Spuds G.D. Staton Well No. 1 in Cherokee County, Texas Monday September 11, 4:30 pm ET
BELLINGHAM, WA--(MARKET WIRE)--Sep 11, 2006 -- Radial Energy Inc. (OTC BB:RENG.OB - News) (the "Company") announced today that it has been notified by its operator, MLC Operating, L.P. ("MLC") of Houston, Texas, that drilling operations commenced at the G.D. Staton Well No. 1, Highway 79 Prospect, Cherokee County, Texas, on September 8, 2006. ADVERTISEMENT
The well is located one mile west of Jacksonville, Texas, and is the first well to be drilled on the Highway 79 Prospect. 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 5.300,000 barrels of oil and 1.68 billion cubic feet of natural gas from all three zones. Radial Energy has a working interest participation in the prospect of 30% before payout and 22.5% after payout.
The prospect leases cover approximately 340 net acres, and are located between Neches Field, which has produced over 100 million barrels and over 85 billion cubic feet (bcf) of gas, and Jacksonville North Field, which has produced over 4 million barrels (bbls) of oil. The Highway 79 Prospect targets structural traps in the 1st, 2nd and 3rd Woodbine Sands. If successful, the estimated potential for the 1st Woodbine Sand calculate to be approximately 2,200,000 barrels of oil and 690 million cubic feet of gas and, for the 2nd and 3rd Woodbine Sands calculate to be approximately 3,120,000 barrels of oil and 990 million cubic feet of gas.
Company President G. Leigh Lyons stated, "The Highway 79 prospect is the first of three prospects in Cherokee County that the company will be drilling back-to-back. All three prospects are testing reservoirs in the Woodbine formation that are almost always hydrocarbon-bearing if the proper conditions for trapping are present. This prospect is a classic example of Radial's strategy in action -- it is an updip test to nearby wells with promising hydrocarbon shows and is surrounded by fields that have produced significant oil and natural gas from the same reservoirs being targeted in the G.D. Staton No. 1 well."
ABOUT THE COMPANY
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.
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.
Market Advisor Analyst Report Issues Intermediate Price Target of $3.25 for RENG Radial Energy, Inc. (OTCBB: RENG) is in the business of acquiring and developing low risk oil and natural gas exploration and development opportunities throughout the Americas. The company's original business has grown into a diversified portfolio of independent exploration and production companies with oil and natural gas assets throughout North, Central and South America. Their success has come in their ability to identify previously drilled exploratory wells that weren't fully developed by the companies that initially drilled the wells. This is a viable strategy in today's oil and gas sector as it allows the company to target overlooked and underdeveloped reserves. Large companies are at a distinct disadvantage for smaller companies as they are not able to move as fast when it comes to identifying opportunities, funding of projects, and as such, faster in the development of the assets. This was recently demonstrated by the company's Peru and Texas acquisitions.
Other active stocks are U.S. Energy Corp. (NASDAQ: USEG), Olympic Steel, Inc. (NASDAQ: ZEUS) and Atmel Corporation (NASDAQ: ATML).
Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. We accept no liability for any losses arising from an investor's reliance on or use of this report. This report is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. A Third Party has hired and paid $500.00 for the publication and circulation of this report. Certain information included herein is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. We have no ownership of equity, no representation and do no trading of any kind.
Source: Market Wire (September 12, 2006 - 6:10 AM EST)