Significantly, independent geological consultants Gustavson Associates of Boulder, Colorado were able to complete an assessment of the South American assets. The results categorized the assets as Proven Undeveloped and Non-Producing reserves (P90) of approximately 3.1 million barrels of oil net to the Company's interests.
In field operations, drilling of the first well on the Huaya Block 100 commenced in late November 2006, having reached a depth of 235 feet before mechanical problems with key rig equipment caused a temporary suspension of drilling operations in order for repairs to be effected. The operator was able to set surface casing prior to the stoppage and reported the hole in excellent condition and that, according to mud logs, the geological prognosis is according to plans. The operator anticipates that drilling will resume mid-January of 2007 and that upon resumption of drilling, will take approximately 1 week to reach total depth.
In early December 2006, management signed the formal Joint Operating Agreement formalizing the Company's participation in the Bosques Exploration and Production Block in Colombia. Reactivation of the first shut-in oil well is planned for early in the first quarter of 2007 dependent upon rig availability.
In North America, drilling is set for the first quarter of 2007 for the Campbell #1 well on the NW Jacksonville prospect in east Texas, to be followed shortly thereafter by the test of the nearby Junction prospect.
Radial President, G. Leigh Lyons comments, "A successful completion of the Huaya 100-1X well in January will clearly be a strong catalyst for growth in this early stage of the Company's growth. We are quite excited about the reactivation of the first well in Colombia, which offers a low risk opportunity to produce oil and generate revenue. We have been quite active in Colombia and Peru on other fronts, having signed a Letter of Intent on the Canaguaro Block in the Llanos basin of Colombia and we can report that the Company is reviewing several additional opportunities located in this historically productive region. All our plans are coming together nicely, and we look forward to a very significant year in the evolution of the Company. We wish all out partners, stakeholders, and investors a very Happy New Year."
Radial Energy identifies, acquires, and develops low risk oil and natural gas exploration and development opportunities throughout the Americas. The Company's 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.
The Company targets prospective oil and natural gas opportunities in historically productive regions with a 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.
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