Radial Energy Receives Second Financing Payment
Radial Energy Inc. (OTC BB:RENG.OB) has received the second tranche of $1,500,000 from Cornell Capital Partners LP, as part of Radial Energy's previously announced $5,000,000 convertible debenture financing. Radial Energy expects to receive the third and final tranche of $1,500,000 from Cornell Capital before January 15, 2007 (all figures in U.S. dollars).
The funds are earmarked for the capital requirements of Company projects, in particular for the Block 100 project in Peru where the Company is set to initiate drilling operations on the Huaya 100-1X well, currently scheduled to spud on November 16th. The rig and equipment, which were purchased in the U.S. and shipped from the Port of Houston in August, arrived via river barge at the site in mid-October. After successful testing of the rig equipment, and the recent arrival of service company equipment and personnel, the project is ready to move forward. Company President, G. Leigh Lyons, states, "The second tranche of funds from our recent financing is key to meeting our $1,650,000 contractual commitment to fund the drilling of the second and third wells on the prospect. We have a short 10 days after the completion of the Huaya 100-1X well to approve the drilling of the 2X and 5X wells. From an equipment standpoint we are on schedule to receive, at the site, the casing, well heads and tubing for the second and third well within a week. With the second tranche completed we are also ready to proceed with the funding side of the equation."
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 Terminates Rancho Hermoso Acquisition (Aug 03)
- Radial, Canadian Partner to Complete Rancho Hermoso Acquisition (Jun 20)
- Radial Preparing Huaya 100-2X Well Output Test (Jun 01)