Radial Energy identifies, acquires and develops low risk oil and natural gas exploration and development opportunities throughout the Americas. The Company focuses on overlooked or under developed reserves that are under the radar of multinational oil companies and out of the reach of small independents.
Radial Energy's primary focus is on identifying previously drilled but subsequently abandoned exploratory wells that encountered and/or tested live oil or natural gas indicating the presence of marketable hydrocarbons, reservoir and trap.
The Company's management team has drawn upon its extensive background in North, Central and South American oil and natural gas development to analyze the current business climate throughout the Americas.
Texas Cherokee County Prospects
Peru Ucayali Basin , Huaya Anticline: Block 100
Colombia Upper/Middle Magdalena Basin (under review)
Block 100 oil project in Peru's Huaya Anticline region and the Cherokee County, Texas prospects, are examples of the company's identification, acquisition and participation strategy.
GREGORY LEIGH LYONS, President & Chief Executive Officer
Mr. Lyons has over 22 years experience in the domestic and international oil and gas sector, specializing in general management, corporate governance, strategic planning, acquisitions and project management. In addition to his management and governance position with Radial Energy Inc., Mr. Lyons is a director of Benem Ventures Inc. and a past director of several companies in the energy sector.
From 2000 to 2005, Mr. Lyons was Chief Operating Officer and Project Director for Gas TransBoliviano S.A., a Shell/Enron controlled gas transmission company headquartered in Bolivia. Other positions held by Mr. Lyons include, President and Director of Can West Exploration Inc., a junior exploration company operating in Colombia, Vice President of Exploration and Production for CGC S.A. in Buenos Aires, and Vice President of Corporate Development for Global Natural Resources Inc. in Houston. Mr. Lyons received his Bachelor of Arts in Earth Science from the University of California, Santa Cruz in 1984 and is an Alumnus of the Harvard Business School having completed the Advanced Management Program in 2004.
OMAR HAYES, Chief Operating Officer
Mr. Hayes is an experienced oil and gas veteran having built his career in Latin America by providing his considerable project expertise to an assembly of established and respected organizations.
He was Project Manager for over five years with Transredes S.A. during a period of rapid expansion, primarily with the company's gas transmission and distribution projects. He then proceeded to work for GasTransBoliviano S. A. overseeing projects developed during a chapter of the company's transition and growth of both services and facilities. He transitioned into the role of Gas System Operations Manager with a Shell/Enron joint venture under the combined efforts of both his previous employers, and in 2005 he returned to GasTransBoliviano as Vice resident of Operations.
Mr. Hayes received his Master of Science in Mechanical Engineering as part of a Fulbright Scholarship to Michigan State University in 1997. He also received a Master in Business Administration at the Universidad Catolica Boliviana in 2000, and a BS in Mechanical Engineering from the Universidad Mayor Realy Pontificia de San Francisco Xavier de Chuquisaca in 1989. He has attended many executive level programs at several important Universities including the Oxford Princeton Programme (UK), Harvard Business School and Stanford University.
BLOCK 100, HUAYA ANTICLINE, PERU
Radial Energy has acquired a 20% working interest in the Block 100 oil project is located within the Huaya Anticline area in the Ucayali Basin of eastern Peru. Third-party geological assessment conducted by Gustavson Associates in May 2006 estimates that the Block 100 project has recoverable in place reserves between 15 – 29.5 MMBO.
The Block 100 project reflects Radial Energy’s key investment criteria:
-Quick turnaround from identification of deal to formal agreement
-Third party reserve assessment completed
-20% non-operated working interest
-$1,650,000 to drill and test the first well in September 2006
-Decision point to continue upon completion of first well
-$1,650,000 to drill two more wells and to install all facilities
-20% heads-up after three wells drilled and facilities installed
-34 total wells
-Total net investment in the project is $4,900,000
-4.1 million barrels of 39 gravity oil unrisked, most likely case
-International oil prices
-$77,000,000 10% disc. present value, before tax
-U.S. dollar convertibility
-Free repatriation of revenue
-Government-backed foreign investment incentives
CHEROKEE COUNTY, TEXAS
Cherokee County prospects involve three separate exploratory oil and gas prospects located near Jacksonville, Texas. For each of the three assets, Radial Energy holds a 30% working interest before payout of initial investment, and a 25% working interest after payout (with the vendor retaining a 4% Overriding Royalty). Payout is determined on a per project basis.
The Highway 79 Prospect is located in northwestern Cherokee County, one mile west of Jacksonville, Texas. The prospect leases cover approximately 340 net acres, which 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.
The Junction Prospect is located in northwestern Cherokee County, approximately five miles southwest of Jacksonville, Texas. This oil and natural gas prospect’s leasehold covers approximately 500 acres, and like the Highway 79 Prospect, is located between Neches and Jacksonville North fields. The prospect targets a Woodbine sand reservoir that was found in the nearby Humphrey #1 L.C. Earle that well log interpretation indicates drilled through 12 feet of hydrocarbon-bearing sand. With a successful discovery, the estimated potential for the Woodbine sand calculate to be approximately 80,000 bbls oil and 9.18 bcf of gas.
The Northwest Jacksonville Prospect leasehold covers approximately 350 acres located in northern Cherokee County. The prospect is situated southwest of Jacksonville North Field and northeast of West Jacksonville Field, which produced 766,000 bbls of oil and 390,000 mcf of gas. The prospect is interpreted to be a high side fault closure on a northeast-southwest trending, down-to-the-northwest fault. The discovery of reserves in a similar structural feature, 2,000 feet to the southeast, resulted in the Northwest Jacksonville Field, which produced 978,000 mcf of gas and 2,000 bbls of condensate from the 1st Woodbine sand. If successful, the estimated potential from all three prospective Woodbine sands is calculated to be approximately 8,700 bbls of condensate and 4,100,000 mcf of gas.
UPPER/MIDDLE MAGDALENA BASIN, COLOMBIA
Radial Energy is currently reviewing investment opportunities in Colombia, focusing attention on the prolific Upper and Middle Magdalena Basins, an actively producing region of central Colombia. Radial Energy, in line with its strategy, is working first to identify investment and geological conditions similar to the Block 100, Peru project, namely previously drilled wells with live oil or natural gas shows or tests – indicating, trap, seal and marketable hydrocarbons – where subsequent development of the apparent discovery did not occur for clearly defined reasons.
Shares - Issued & Outstanding:
44,565,824 common shares
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