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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION


                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB


                QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2006


                        COMMISSION FILE NUMBER 333-113726


                               RADIAL ENERGY INC.
        _________________________________________________________________
        (Exact name of small business issuer as specified in its charter)


            NEVADA                                               72-1580091
_______________________________                              ___________________
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)


               1200 SMITH STREET, SUITE 1600, HOUSTON, TEXAS 77002
               ___________________________________________________
                    (Address of principal executive offices)


                  Issuer's telephone number: (713) 353-4963


          1313 EAST MAPLE ST., SUITE 223, BELLINGHAM, WASHINGTON 98225
          ____________________________________________________________
                 (Former address, if changed since last report)


     Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to filing requirements for the past 90 days.     Yes |X| No |_|

     Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).
                                                               Yes  |_|  No  |X|

     State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: As of November 6, 2006,
44,585,824 shares of common stock were issued and outstanding.


     Transitional Small Business Disclosure Format (Check one):   Yes |_| No |X|

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<PAGE>


                               RADIAL ENERGY INC.
                                TABLE OF CONTENTS

  PART I.   FINANCIAL INFORMATION


     Item 1. Financial Statements

             Interim Balance Sheets as of September 30, 2006 and December 31,
                2005 (Unaudited)............................................   4

             Interim Statements of Operations for the three and nine-month
                periods ended September 30, 2006 and 2005 and for the period
                from June 30, 2000 (Date of Inception) to September 30, 2006
                (Unaudited).................................................   5

             Interim Statements of Cash Flows for the nine-month period
                ended September 30, 2006 and 2005 and for the period from
                June 30, 2000 (Date of Inception) to September 30, 2006
                (Unaudited).................................................   6

             Interim Statement of Stockholders' Equity (Deficiency) for
                the period June 30, 2000 (Date of Inception) to September
                30, 2006 (Unaudited)........................................   7

             Notes to the Interim Financial Statements (Unaudited)..........   9


     Item 2. Management's Plan of Operation.................................. 20

     Item 3. Controls and Procedures......................................... 25


PART II.   OTHER INFORMATION


     Item 6. Exhibits.......................................................  27


SIGNATURES..................................................................  28

EXHIBIT INDEX ..............................................................  29


                                                                               2
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<PAGE>


                         PART I.--FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS


                               RADIAL ENERGY INC.

                       (formerly BV Pharmaceutical, Inc.)

                          (A Development Stage Company)

                          INTERIM FINANCIAL STATEMENTS

                               September 30, 2006

                             (Stated in US Dollars)

                                   (UNAUDITED)









                                                                               3
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<PAGE>

<TABLE>
<CAPTION>

                               RADIAL ENERGY INC.
                       (formerly BV Pharmaceutical, Inc.)
                          (A Development Stage Company)
                             INTERIM BALANCE SHEETS
                    September 30, 2006 and December 31, 2005
                             (Stated in US Dollars)
                                   (UNAUDITED)


                                                                   September 30      December 31
                                                                        2006              2005
                                                                   ____________      ___________
<S>                                                                <C>               <C>
                                     ASSETS
Current
   Cash                                                            $          -      $     1,211
   Prepaid expenses and deposit                                           7,857                -
   Current assets of discontinued operations - Note 12                        -            1,000
                                                                   ____________      ___________

                                                                          7,857            2,211

Equipment - Note 4                                                        1,980                -
Oil and gas properties - Note 5                                       2,418,426                -
                                                                   ____________      ___________

                                                                   $  2,428,263      $     2,211
                                                                   ============      ===========
                                   LIABILITIES

Current
   Bank indebtedness                                               $      2,529      $         -
   Accounts payable and accrued liabilities - Note 5                    774,012            8,435
   Due to related parties - Note 8                                       36,847                -
   Notes payable - Note 6                                               385,000                -
   Current liabilities of discontinued operations - Note 12                   -            7,500
                                                                   ____________      ___________

                                                                      1,198,388           15,935
                                                                   ____________      ___________
                        STOCKHOLDERS' EQUITY (DEFICIENCY)

Capital stock - Note 7
   Authorized:
      75,000,000 common stock, $0.001 par value
   Issued:

      44,585,824 common stock (December 31, 2005: 151,065,824)           44,586          151,066
Additional paid-in capital     - shares                               2,250,810            6,180
                               - warrants                               904,950                -

Deficit accumulated during the development stage                     (1,970,471)        (170,970)
                                                                   ____________      ___________

                                                                      1,229,875          (13,724)
                                                                   ____________      ___________

                                                                   $  2,428,263      $     2,211
                                                                   ============      ===========

                             SEE ACCOMPANYING NOTES

</TABLE>

                                       4


<PAGE>

<TABLE>
<CAPTION>

                               RADIAL ENERGY INC.
                       (formerly BV Pharmaceutical, Inc.)
                          (A Development Stage Company)
                        INTERIM STATEMENTS OF OPERATIONS
              for the three and nine-month periods ended September
                                30, 2006 and 2005
 and for the period from June 30, 2000 (Date of Inception) to September 30, 2006
                             (Stated in US Dollars)
                                   (UNAUDITED)

                                                                                                                 June 30, 2000
                                                                                                                   (Date of
                                                        Three months ended               Nine months ended       Inception) to
                                                           September 30                    September 30          September 30,
                                                       2006            2005            2006             2005         2006
                                                       ___________   ____________   ___________   ____________    ___________
<S>                                                    <C>           <C>            <C>           <C>             <C>

Administrative expenses

    Administration fees                                $     5,831   $          -   $    14,331   $          -    $    14,331
    Advertising and promotion                                    -              -             -              -          1,001
    Amortization                                               104              -           104              -            104
    Consulting fees - Note 8                                39,063            425        68,580            425        117,077
    Executive compensation and benefits - Note 8            82,800              -     1,342,000              -      1,342,000
    Filing fees                                              3,613              -         7,584          6,613         20,039
    Financing fees - Note 9                                 11,250              -        11,250              -         11,250
    Interest and bank charges                               29,179             24        30,567          2,588         38,181
    Investor relations                                      34,505              -        76,162              -         86,158
    Marketing management services                           17,460              -        46,610              -         46,610
    Office and miscellaneous                                 1,733            473         4,384          3,898         15,386
    Professional fees                                       63,281          3,399        88,693         11,009        129,331
    Rent                                                     5,097              -         7,419              -          7,924
    Telephone                                               14,419              -        15,987              -         17,858
    Transfer agent fees                                      1,745              -         4,802          1,581          4,802
    Travel and related costs                                67,493              -        84,944              -         84,994
    Website maintenance                                      1,897              -        13,991            273         16,120
                                                       ___________   ____________   ___________   ____________    ___________

Loss before other items                                   (379,470)        (4,321)   (1,817,408)       (26,387)    (1,953,116)


Other items:
    Other income                                                 -              -             -              -             58
    Gain on note payable forgiven - Note 7                       -              -         9,407              -          9,407
                                                       ___________   ____________   ___________   ____________    ___________

Net loss from continuing operations                       (379,470)        (4,321)   (1,808,001)       (26,387)    (1,943,651)


Income (loss) from discontinued operations - Note 12             -              -         8,500            480        (26,820)
                                                       ___________   ____________   ___________   ____________    ___________


Net loss for the period                                $  (379,470)  $     (4,321)  $(1,799,501)  $    (25,907)   $(1,970,471)
                                                       ===========   ============   ===========   ============    ===========


Basic loss per share from continuing operations        $     (0.01)  $      (0.00)  $     (0.03)  $      (0.00)
                                                       ===========   ============   ===========   ============

Basic income per share from discontinued operations    $         -   $          -   $      0.00   $       0.00
                                                       ===========   ============   ===========   ============

Weighted average number of shares outstanding           42,742,346    150,493,112    54,649,121    150,113,400
                                                       ===========   ============   ===========   ============

                             SEE ACCOMPANYING NOTES

</TABLE>

                                       5


<PAGE>

<TABLE>
<CAPTION>

                               RADIAL ENERGY INC.
                       (formerly BV Pharmaceutical, Inc.)
                          (A Development Stage Company)
                        INTERIM STATEMENTS OF CASH FLOWS
                  for the nine-month period ended September 30,
            2006 and 2005 and for the period from June 30, 2000 (Date
                       of Inception) to September 30, 2006
                             (Stated in US Dollars)
                                   (UNAUDITED)

                                                                                                                 June 30, 2000
                                                                                                                   (Date of
                                                                                        Nine months ended        Inception) to
                                                                                          September 30,          September 30,
                                                                                       2006          2005            2006
                                                                                    ___________   ____________    ___________
<S>                                                                                 <C>           <C>             <C>

Cash Flows from (used in) Operating Activities

   Net loss from continuing operations                                              $(1,808,001)  $    (26,387)   $(1,943,651)
   Deduct items not affecting cash:

      Amortization                                                                          104              -            104
      Gain on note payable forgiven                                                      (9,407)             -         (9,407)
      Stock issued for executive compensation                                         1,200,000              -      1,200,000
      Stock issued for financing fee                                                     19,600              -         19,600
   Changes in non-cash working capital balances related to operations:
      Prepaid expenses                                                                   (7,857)             -         (7,857)
      Accounts payable and accrued liabilities                                          765,984         (6,566)       774,419
                                                                                    ___________   ____________    ___________
                                                                                        160,423        (32,953)        33,208
                                                                                    ___________   ____________    ___________
Cash Flows used in Investing Activities
   Acquisition of equipment                                                              (2,084)             -         (2,084)
   Oil and gas properties                                                            (2,418,426)             -     (2,418,426)
                                                                                    ___________   ____________    ___________

                                                                                     (2,420,510)             -     (2,420,510)
                                                                                    ___________   ____________    ___________
Cash Flows from Financing Activities

   Bank indebtedness                                                                      2,529              -          2,529
   Increase in due to related parties                                                    36,847              -         36,847
   Capital stock issued                                                               1,852,500              -      1,952,475
   Increase in note payable                                                             365,000              -        365,000
   Convertible debentures                                                                     -          2,479         57,271
                                                                                    ___________   ____________    ___________

                                                                                      2,256,876          2,479      2,414,122
                                                                                    ___________   ____________    ___________
Increase (decrease) in cash from continuing operations                                   (3,211)       (30,474)        26,820

Increase (decrease) in cash from discontinued operations - Note 12                        2,000          7,980        (26,820)
                                                                                    ___________   ____________    ___________

Decrease in cash during the period                                                       (1,211)       (22,494)             -

Cash, beginning of the period                                                             1,211         24,964              -
                                                                                    ___________   ____________    ___________

Cash, end of the period                                                             $         -   $      2,470    $         -
                                                                                    ===========   ============    ===========

Non-cash Transactions - Note 11

                             SEE ACCOMPANYING NOTES

</TABLE>

                                       6


<PAGE>

<TABLE>
<CAPTION>

                               RADIAL ENERGY INC.
                       (formerly BV Pharmaceutical, Inc.)
                          (A Development Stage Company)
                   INTERIM STATEMENTS OF STOCKHOLDERS' EQUITY
               (DEFICIENCY) for the period June 30, 2000 (Date of
                        Inception) to September 30, 2006
                             (Stated in US Dollars)
                                   (UNAUDITED)


                                                                                            Deficit
                                                                                          Accumulated
                                                             Additional Paid-in           During the
                                       Common Stock                Capital                Development
                                  *Shares      **ParValue    Shares     Warrants             Stage          Total
                                 ___________   __________    __________    ________       ___________     _________
<S>                              <C>           <C>           <C>           <C>            <C>             <C>

Capital stock subscribed
pursuant to an offering
memorandum for cash
              - at $0.0000002    122,172,000   $ 122,172     $(121,968)    $      -       $         -     $     204
                                 ___________   __________    _________     ________       ___________     _________

Balance, December 31, 2000       122,172,000     122,172      (121,968)           -                 -           204
Capital stock issued pursuant
to a private placement
               - at $0.0025       27,108,400      27,108        40,663            -                 -        67,771
               - at $0.05            160,000         160         7,840            -                 -         8,000
Net loss for the year                      -           -             -            -           (69,885)      (69,885)
                                 ___________   __________    _________     ________       ___________     _________

Balance, December 31, 2001       149,440,400     149,440       (73,465)           -           (69,885)        6,090
Capital stock issued pursuant
to a private placement
               - at $0.05            480,000         480        23,520            -                 -        24,000
Net loss for the year                      -           -             -            -           (30,090)      (30,090)
                                 ___________   __________    _________     ________       ___________     _________

Balance, December 31, 2002       149,920,400     149,920       (49,945)           -           (99,975)            -
Net income for the year                    -           -             -            -               108           108
                                 ___________   __________    _________     ________       ___________     _________

Balance, December 31, 2003       149,920,400     149,920       (49,945)           -           (99,867)          108
Net loss for the year                      -           -             -                        (36,453)      (36,453)
                                 ___________   __________    _________     ________       ___________     _________

Balance, December 31, 2004       149,920,400     149,920       (49,945)           -          (136,320)      (36,345)

                                                                                                         .../cont'd

                             SEE ACCOMPANYING NOTES


                                       7


<PAGE>

                               RADIAL ENERGY INC.
                       (formerly BV Pharmaceutical, Inc.)
                          (A Development Stage Company)
                   INTERIM STATEMENTS OF STOCKHOLDERS' EQUITY
               (DEFICIENCY) for the period June 30, 2000 (Date of
                        Inception) to September 30, 2006
                             (Stated in US Dollars)
                                   (UNAUDITED)


                                                                                            Deficit
                                                                                          Accumulated
                                                             Additional Paid-in           During the
                                       Common Stock                Capital                Development
                                  *Shares      **ParValue    Shares     Warrants             Stage          Total
                                 ___________   __________    __________    ________       ___________     _________


Capital stock issued pursuant
to conversion of convertible
debentures     - at $0.05          1,145,424       1,146        56,125            -                 -        57,271
Net loss for the year                      -           -             -            -           (34,650)      (34,650)
                                 ___________   __________    _________     ________       ___________     _________

Balance, December 31, 2005       151,065,824     151,066         6,180            -          (170,970)      (13,724)
Capital stock retired to the
treasury                        (116,000,000)   (116,000)       87,000            -                 -       (29,000)
Capital stock issued for
executive compensation
               - at $0.80          1,500,000       1,500     1,198,500            -                 -     1,200,000
Capital stock issued for loan
fee            - at $0.98             20,000          20        19,580            -                 -        19,600
Capital stock issued pursuant
to a private placement
               - at $0.25          8,000,000       8,000     1,087,050      904,950                 -     2,000,000
Finders' fees on private
placement                                  -           -      (147,500)           -                 -      (147,500)
Net loss for the period                    -           -             -            -        (1,799,501)   (1,799,501)
                                 ___________   __________    _________     ________       ___________     _________

Balance, September 30, 2006       44,585,824   $  44,586    $2,250,810     $904,950      $(1,970,471)    $1,229,875
                                 ===========   =========     =========     ========       ===========     =========

*     The common stock issued has been retroactively  restated to reflect a forward stock split of 1,500 new shares
      for one old share, effective January 5, 2001 and a forward split of four new shares for one old share,
      effective February 20, 2006 (Note 7).
**    The par value of common stock has been retroactively restated to reflect a change from no par value to a par
      value of $0.001 per share.


                             SEE ACCOMPANYING NOTES

</TABLE>

                                       8


<PAGE>


                               RADIAL ENERGY INC.
                       (formerly BV Pharmaceutical, Inc.)
                          (A Development Stage Company)
                    NOTES TO THE INTERIM FINANCIAL STATEMENTS
                               September 30, 2006
                             (Stated in US Dollars)
                                   (UNAUDITED)


Note 1        INTERIM REPORTING

              The accompanying unaudited interim financial statements have been
              prepared by Radial Energy Inc. (the "Company") pursuant to the
              rules and regulations of the United States Securities and Exchange
              Commission. Certain information and disclosures normally included
              in annual financial statements prepared in accordance with
              accounting principles generally accepted in the United States of
              America have been condensed or omitted pursuant to such rules and
              regulations. In the opinion of management, all adjustments and
              disclosures necessary for a fair presentation of these financial
              statements have been included. Such adjustments consist of normal
              recurring adjustments. These interim financial statements should
              be read in conjunction with the audited financial statements of
              the Company for the fiscal year ended December 31, 2005.

              The results of operations for the nine months ended September 30,
              2006 are not indicative of the results that may be expected for
              the full year.

Note 2        CONTINUANCE OF OPERATIONS


              These interim financial statements have been prepared in
              accordance with generally accepted accounting principles
              applicable to a going concern, which assumes that the Company will
              be able to meet its obligations and continue its operations for
              its next twelve months. Realization values may be substantially
              different from carrying values as shown and these financial
              statements do not give effect to adjustments that would be
              necessary to the carrying values and classification of assets and
              liabilities should the Company be unable to continue as a going
              concern. At September 30, 2006, the Company had not yet achieved
              profitable operations, has accumulated losses of $1,970,471 since
              its inception, has a working capital deficiency of $1,190,531 and
              expects to incur further losses in the development of its
              business, all of which casts substantial doubt about the Company's
              ability to continue as a going concern. The Company's ability to
              continue as a going concern is dependent upon its ability to
              generate future profitable operations and/or to obtain the
              necessary financing to meet its obligations and repay its
              liabilities arising from normal business operations when they come
              due.


              The Company has arranged a financing of up to $5,000,000 pursuant
              to a securities purchase agreement to issue and sell to the
              purchaser secured convertible debentures which shall be
              convertible into shares of the Company's common stock and will
              issue to the purchaser warrants to purchase the Company's common
              stocks (Note 10).


                                       9


<PAGE>


Radial Energy Inc.
(formerly BV Pharmaceutical, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED) - Page 2



Note 3        ADDITIONAL ACCOUNTING POLICIES

              OIL AND GAS PROPERTIES

              The Company follows the full cost method of accounting for oil and
              gas operations whereby all costs of exploring for and developing
              oil and gas reserves are initially capitalized on a
              country-by-country (cost centre) basis. Such costs include land
              acquisition costs, geological and geophysical expenses, carrying
              charges on non-producing properties, costs of drilling and
              overhead charges directly related to acquisition and exploration
              activities.

              Costs capitalized, together with the costs of production
              equipment, are depleted and amortized on the unit-of-production
              method based on the estimated gross proved reserves. Petroleum
              products and reserves are converted to a common unit of measure,
              using 6 MCF of natural gas to one barrel of oil.

              Costs of acquiring and evaluating unproved properties are
              initially excluded from depletion calculations. These unevaluated
              properties are assessed periodically to ascertain whether
              impairment has occurred. When proved reserves are assigned or the
              property is considered to be impaired, the cost of the property or
              the amount of the impairment is added to costs subject to
              depletion calculations.

              Future net cash flows from proved reserves using period-end,
              non-escalated prices and costs, are discounted to present value
              and compared to the carrying value of oil and gas properties.

              Proceeds from a sale of petroleum and natural gas properties are
              applied against capitalized costs, with no gain or loss
              recognized, unless such a sale would alter the rate of depletion
              by more than 20%. Royalties paid net of any tax credits received
              are netted with oil and gas sales.

              EQUIPMENT AND DEPRECIATION

              Equipment is recorded at cost and depreciated over their estimated
              useful lives using the declining balance method. Additions are
              depreciated at half the annual rate in the year of acquisition.

Note 4        EQUIPMENT

<TABLE>
<CAPTION>

                                                September 30, 2006           December 31, 2005
                                    ____________________________________     _________________
                                                Accumulated
                                     Cost       Depreciation       Net              Net
                                    _______     ____________     _______            ___
<S>                                 <C>           <C>            <C>                <C>

             Computer equipment     $ 2,084        $ 104         $ 1,980            $ -
                                    =======        =====         =======            ===
</TABLE>



                                       10


<PAGE>


Radial Energy Inc.
(formerly BV Pharmaceutical, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED) - Page 3


Note 5        OIL AND GAS PROPERTIES

<TABLE>
<CAPTION>

                                                          September 30,      December 31,
                                                               2006              2005
                                                          ______________     ____________
<S>                                                           <C>               <C>


            Anticline Project
                Equipment and advance on exploration        $1,650,000           $ -
                Geological consulting                           68,426             -
                                                          ______________         ___

                                                             1,718,826             -

            Cherokee County Project
                Advance                                        700,000             -
                                                          ______________         ___

                                                            $2,418,426           $ -
                                                          ==============         ===

</TABLE>



              i)  Anticline Project

                  On May 11, 2006, the Company entered into a Joint Operating
                  Agreement ("JOA") with Peruvian and American companies whereby
                  the Company acquired a 20% working interest and 18% revenue
                  interest in an oil project located in Peru by funding the
                  acquisition of certain equipment, for the shipment of this
                  equipment to the project site in Peru and for the drilling,
                  testing and evaluation of the first exploratory well on the
                  property in the total amount of $1,650,000.

                  After the drilling of the first well is complete, the Company
                  will have the option whether to proceed with the project by
                  funding the drilling, testing and evaluation of another two
                  wells on the property for an additional $1,650,000. This
                  additional investment will also cover the costs to install
                  production facilities, including pipeline and loading dock,
                  tank batteries and pumping units as required to deliver the
                  produced oil to market. Thereafter, the Company will have the
                  option to pay for its 20% working interest share of the
                  development and operation of the project.

                  In the event the Company and the transacting parties decide
                  that the project is not feasible, the equipment acquired will
                  be sold and the Company will be entitled to 67% of the
                  proceeds.

                  At September 30, 2006, the Company had advanced $1,650,000
                  towards the acquisition of the equipment.


                                       11


<PAGE>


Radial Energy Inc.
(formerly BV Pharmaceutical, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED) - Page 4


Note 5        OIL AND GAS PROPERTIES - (cont'd)

              ii) Cherokee County Project

                  By an assignment agreement dated June 27, 2006 and amended
                  September 29, 2006, the Company has agreed to acquire a
                  working interest from a Canadian company in three separate
                  exploratory oil and gas prospects located in Cherokee County,
                  Texas, under three leasehold assignment agreements with a
                  company in Texas. In consideration for the assignment, the
                  Company has agreed to pay $700,000 on or before November 17,
                  2006, with the vendor retaining a 4% overriding royalty. The
                  payment covers the Company's share of the estimated capital
                  expenditures to drill and complete the first test wells on
                  each of the three prospects. The leasehold agreement for all
                  three prospects includes a 30% working interest before payout
                  of initial investment of the Canadian company and a 22.5%
                  working interest after payout, with payout determined on a per
                  project basis.

                  In the event that the Company fails to make the payment, the
                  Canadian company has the option to have the rights of the
                  agreement revert back or to receive from the Company a penalty
                  payment in the amount of 120% of the $700,000 consideration
                  and at its option, the amount shall be convertible into the
                  securities of the Company at a price equal to the lowest
                  offering price of the Company's securities to the general
                  public during the year ended December 31, 2006.

Note 6        NOTES PAYABLE - Note 7

              On July 12, 2006, the Company received $250,000 pursuant to a
              promissory note. The note is unsecured, bears interest at 12% per
              annum and is due July 12, 2007.

              On July 31, 2006, the Company received $100,000 pursuant to a
              promissory note. The note is unsecured, bears interest at 12% per
              annum and is due July 31, 2007. The Company paid a loan fee by the
              issuance of 20,000 shares of common stock valued at $19,600.

              On September 19, 2006, the Company received $35,000, pursuant to a
              promissory note. The note is unsecured, non-interest bearing and
              is due September 19, 2006. The note was paid in full subsequent to
              September 30, 2006.

Note 7        CAPITAL STOCK - Notes 6 and 9

              Effective on January 5, 2001, the Company forward split its issued
              common stock on the basis of 1,500 new for one old.

              On May 25, 2004, the Company amended its authorized capital stock
              to 75,000,000 common shares with a par value of $0.001 per share.
              The number of authorized shares and the par value per share as
              referred to in these financial statements has been restated
              wherever applicable to give retroactive effect to this amendment.


                                       12


<PAGE>


Radial Energy Inc.
(formerly BV Pharmaceutical, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED) - Page 5


Note 7        CAPITAL STOCK - Notes 6 and 9 - (cont'd)

              On February 10, 2006, the Company repurchased a total of
              29,000,000 pre-forward split (116,000,000 post-forward split)
              common shares at $0.001 per share from the previous President of
              the Company by the issuance of a promissory note for $29,000
              bearing interest at 8% per annum and due August 10, 2006. The
              Company repaid $20,000 of the promissory note on March 27, 2006,
              which was accepted as payment in full. Consequently the balance of
              the note and related interest was written off during the three
              months ended March 31, 2006.

              Effective on February 20, 2006, the Company forward split its
              issued common stock on the basis of four new for one old. The
              number of shares referred to in these financial statements has
              been restated wherever applicable to give retroactive effect on
              the forward stock splits. There was no effect on the Company's
              authorized share capital.

              The retroactive restatement of the issued common shares is
              required by the Securities and Exchange Commission's Staff
              Accounting Bulletin, Topic 4c. In actuality, the forward stock
              split, of four for one is effective after the Company's repurchase
              of 29,000,000 pre-forward split (116,000,000 post-forward split
              common shares). Consequently, the number of shares actually issued
              immediately prior to the split was 8,766,456 pre-forward split
              common shares (35,065,824 post-forward split common shares). The
              actual number of common shares, both pre-forward split and
              post-forward split, are less than the number of common shares
              authorized of 75,000,000.

              On March 29, 2006, the officers of the Company approved a plan of
              merger between the Company and Radial Energy Inc. a wholly-owned
              inactive subsidiary of the Company incorporated in the State of
              Colorado on April 10, 2006 by the Company. Under the plan of
              merger, the shares of Radial Energy Inc. were cancelled and the
              shareholders of the Company received one share of the newly-merged
              company for every share of BV Pharmaceutical, Inc. held. The
              purpose of the merger was to facilitate a name change to Radial
              Energy Inc.

              On July 7, 2006, the Company issued 1,500,000 common shares at
              $0.80 per share to an officer of the Company pursuant to an
              employment agreement (Note 9).

              On July 21, 2006, the Company issued 8,000,000 units at $0.25 per
              unit for proceeds of $2,000,000 through the private placement
              offering approved by the Company on February 10, 2006. Each unit
              consists of one common share and one stock purchase warrant
              exercisable until August 4, 2008, into one common share at $0.30
              per share. The Company recorded finders' fees totalling $147,500,
              $117,500 was paid at September 30, 2006 and the remaining $30,000
              was paid subsequent to September 30, 2006.

              On July 31, 2006, the Company issued 20,000 common shares for a
              loan fee valued at $19,600 pursuant to a promissory note for
              $100,000.


                                       13


<PAGE>


Radial Energy Inc.
(formerly BV Pharmaceutical, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED) - Page 6


Note 7        CAPITAL STOCK - Notes 6 and 9 - (cont'd)

              STOCK PURCHASE WARRANTS

              As of September 30, 2006, the Company had 8,000,000 warrants
              outstanding entitling the holder thereof the right to purchase one
              common share for each warrant held.

              The fair value of these warrants of $904,950 was determined using
              the Black-Scholes stock price valuation model with the following
              assumptions:

                  Expected share price volatility                     96%
                  Risk free interest rate                             4.91%
                  Expected dividend yield                             0.0%
                  Expected term in years                              2

Note 8        RELATED PARTY TRANSACTIONS - Notes 7 and 9

              The Company incurred the following amounts charged by a former
              director of the Company and directors and officers of the Company
              pursuant to employment agreements (Note 9):

<TABLE>
<CAPTION>

                                                                                      June 30, 2000
                                                                                        (Date of
                                         Three months ended     Nine months ended     Inception) to
                                            September 30,         September 30,       September 30,
                                          2006         2005        2006      2005         2006
                                         _______       ____     __________   ____     _____________
<S>                                      <C>            <C>     <C>          <C>       <C>

             Consulting fees             $     -       $  -     $    9,000   $  -      $    9,000
             Executive  compensation
             and benefits                 82,800          -      1,342,000      -       1,342,000
                                         _______       ____     __________   ____      __________

                                         $82,800       $  -     $1,351,000   $  -      $1,351,000
                                         =======       ====     ==========   ====      ==========
</TABLE>

              As at September 30, 2006, the due to related parties of $36,847
              (December 31, 2005: $Nil) consists of expenses owing to the
              directors and officers of the Company. These amounts are
              unsecured, non-interest bearing and have no specific terms of
              repayment.


Note 9        COMMITMENTS - Notes 7 and 10

              i)  By an employment agreement dated March 10, 2006 with the
                  President of the Company, and effective April 1, 2006, the
                  Company will pay $180,000 per year plus annual bonuses as
                  determined by the Board of Directors of the Company. In
                  addition, the President will receive a $400 per month auto
                  allowance, $800 per month insurance reimbursement and a
                  minimum $1,000 per month for rental and administrative
                  expenses to maintain an office. The Company may also issue
                  stock options to the President as deemed appropriate by the
                  Board of Directors. The term of the agreement is 3 years.


                                       14


<PAGE>

Radial Energy Inc.
(formerly BV Pharmaceutical, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED) - Page 7




Note 9        COMMITMENTS - Notes 7 and 10 - (cont'd)

              ii) By an employment agreement dated June 1, 2006, with the Chief
                  Operating Officer of the Company, and effective June 1, 2006,
                  the Company will pay $132,000 per year plus annual bonuses as
                  determined by the Board of Directors of the Company. In
                  addition, the Chief Operating Officer will receive a $400 per
                  month auto allowance, $800 per month reimbursement of the
                  costs of the medical insurance coverage and a minimum $1,000
                  per month for rental and administrative expenses to maintain
                  an office. The Company may also issue stock options to the
                  Chief Operating Officer as deemed appropriate by the Board of
                  Directors. The term of the agreement is 3 years. In addition,
                  during the nine months ended September 30, 2006, the Company
                  issued 1,500,000 common shares restricted under the Securities
                  and Exchange Commission Rule 144 for additional consideration
                  for this agreement valued at $1,200,000.

              iii) By a business consulting agreement dated April 1, 2006, the
                  Company will pay $10,000 per month for investor relations
                  services for a term of two years.

              iv) On August 23, 2006, the Company entered into a Letter of
                  Intent with a Columbian company, to enter into a joint
                  operating agreement to acquire a twenty percent (20%) working
                  interest in the right to explore and develop oil reserves and
                  production located in Middle Magdalena Valley of Columbia. The
                  Company's working interest will be subject to a joint
                  operating agreement which is to be negotiated.

                  The Company will be required to contribute $2,200,000 in cash
                  upon execution of the joint operating agreement, $350,000 will
                  be due upon signing the joint operating agreement and another
                  $350,000 will be due sixty days following the signing of the
                  joint operating agreement. The remaining $1,500,000 will be
                  due fifteen days following any capital call made by the
                  Columbian company at any time following the execution of the
                  joint operating agreement.

                  The Company will receive a 33.33% participation in
                  distributions until payout of $1,500,000 of its investment,
                  then after payout, the interest will remain at 20%.

                  The Company has until November 22, 2006 to enter into the
                  joint operating agreement. If the company fails to enter into
                  the agreement by the deadline, then the Columbian company will
                  have no obligation to enter into the joint operating
                  agreement. Further, if the Company fails to properly execute
                  the joint operating agreement, it shall be liable for a
                  termination fee of up to $200,000 as follows:

                  (a) $50,000, if the Company terminates at any time on or
                      before the date the Colombian government issues the
                      appropriate authority to the Columbian Company to begin
                      operations at the site;

                  (b) total of $100,000, if the Company terminates following the
                      date the Colombian government issues such authority; and


                                       15


<PAGE>


Radial Energy Inc.
(formerly BV Pharmaceutical, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED) - Page 8



Note 9        COMMITMENTS - Notes 7 and 10 - (cont'd)

              iv) - (cont'd)

                  (c) total of $200,000, if the Company terminates more than 30
                      days following the date the Columbian government issues
                      such authority.

              v)  The Company has an office lease for a term of one year from
                  September 1, 2006 to August 31, 2007 at a monthly lease of
                  $1,300. It will automatically renew for the same term. The
                  termination clause in the agreement requires a notice of three
                  months.

Note 10       SUBSEQUENT EVENTS - Note 7

              i)  On October 2, 2006, the Company entered into a securities
                  purchase agreement to issue up to $5,000,000 of secured
                  convertible debentures which shall be convertible into common
                  stock and stock purchase warrants to purchase common stock.
                  Pursuant to the securities purchase agreement, the Company
                  entered into an Investor Registration Rights Agreement,
                  Security Agreement, and a Pledge and Escrow Agreement with the
                  Purchaser. The Company will pay the purchaser a commitment fee
                  of 10% of $5,000,000, which shall be paid proportionately upon
                  each disbursement. In addition, the Company will pay the
                  purchaser a non-refundable fee of $22,500 for structuring and
                  due diligence in connection with this transaction ($11,250
                  paid during the nine months ended September 30, 2006).

                  The Company received $3,500,000 and the remaining $1,500,000
                  shall be funded within three business days after a
                  registration statement for this debenture is declared
                  effective by the Securities and Exchange Commission.

                  Pursuant to the securities purchase agreement, the Company
                  issued to the purchaser 3,333,333 stock purchase warrants at
                  an exercise price of $0.75 per share, 2,500,000 stock purchase
                  warrants at an exercise price of $1.00 per share, 2,333,333
                  stock purchase warrants at an exercise price of $1.50 per
                  share, and is obligated to issue to the purchaser an
                  additional 1,000,000 stock purchase warrants at an exercise
                  price of $1.50 per share when the final funding is received.
                  The warrants will be exercisable for a term of five years. The
                  Company has the option to force the purchaser to exercise the
                  warrants within five days following the forced exercise notice
                  assuming that there is sufficient number of shares of common
                  stock to cover the underlying amount of warrants to be
                  exercised and the daily Volume Weighted Average Price of the
                  common stock for each of the five consecutive trading days
                  prior to the forced exercised notice date is above the
                  exercise price. The forced exercise notice shall be limited to
                  1/5 of the trading volume during the five day period. Any
                  allowable forced exercise notice shall be reduced by any
                  warrant amounts exercised by the purchaser during the five day
                  period.


                                       16


<PAGE>


Radial Energy Inc.
(formerly BV Pharmaceutical, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED) - Page 9


Note 10       SUBSEQUENT EVENTS - Note 7 - (cont'd)

              i) - (cont'd)

                  The debentures bear interest at 7.0% per annum, are due on
                  October 2, 2009, secured by the assets of the Company and a
                  pledge of common stock which shall include common stock held
                  by the Company's officers and directors and the remaining
                  shares shall be delivered in the form of a stock certificate
                  in the name of the Company, to be held in escrow and are
                  convertible into the Company's common stock, at the option of
                  the purchaser at any time prior to redemption by the Company.
                  The debentures will be convertible at a conversion price equal
                  to the lesser of $1.0536 or 90% of the lowest volume weighted
                  average daily closing price of the Company's common stock,
                  during the 15 trading days immediately prior to the conversion
                  date. The notes contain a provision whereby no holder is able
                  to convert any part of the note into shares of the Company's
                  common stock, if such conversion would result in beneficial
                  ownership of the holder and its affiliates of more than 4.99%
                  of the Company's then outstanding shares of common stock. The
                  Company has the right at its option to redeem a portion or all
                  amounts outstanding under the debentures by paying the holder
                  the principal amount being redeemed plus a redemption premium
                  of 20 to 30%.

              ii) On October 6, 2006, the Company entered into a Letter of
                  Intent with two companies in Denver, Colorado to participate
                  in an Acreage Earning Agreement with a third party on acres of
                  federal Wasatch/Mesa Verde formation leasehold interests which
                  are located in Uintah County, Utah.

                  Pursuant to the agreement, the Company shall commit to the
                  drilling of a minimum of three wells in 2007 and three wells
                  in 2008 to test the property. The Company will carry the
                  parties for 37.5% interest in the first three wells and will
                  carry the parties for 12.5% working interest in the second
                  three wells. Upon completion of the respective drilling
                  obligations, the parties shall bear their 37.5% interest of
                  all further wells, with the Company bearing the remaining
                  62.5% working interest. In the event the parties enter into an
                  area of mutual interest with respect to any additional related
                  acreage, such acreage shall be owned 62.5% by the Company and
                  12.5% by the two Colorado companies with the remaining 25%
                  being offered to the third party. Should the Company fail to
                  fund its share of the required wells during the first 2
                  year-period, it shall earn interest only in the drillsite
                  spacing units and all undrilled acreage will revert back to
                  the two companies.

                  The Company was required to enter into a Definitive Agreement
                  setting out the final terms of the agreement by no later than
                  October 25, 2006 and was required to pay to the two Colorado
                  companies' finders' fees in the amount of $100,000. This
                  amount was paid on October 19, 2006. This agreement has been
                  extended to November 14, 2006.


                                       17


<PAGE>


Radial Energy Inc.
(formerly BV Pharmaceutical, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED) - Page 4


Note 11       NON-CASH TRANSACTIONS

              Investing and financing activities that do not have a direct
              impact on current cash flows are excluded from the statements of
              cash flows.

              During the nine month period ended September 30, 2006:

              -   the Company repurchased 116,000,000 common shares by the
                  issuance of a promissory note for $29,000.

              -   the Company issued 1,500,000 common shares at $0.80 totalling
                  $1,200,000 to a director of the Company pursuant to an
                  employment agreement.

              -   the Company issued 20,000 common shares for a financing fee
                  valued at $19,600 pursuant to a promissory note.

              During the period ended September 30, 2005

              -   the Company issued 286,356 common shares at $0.20 per share
                  pursuant to the conversion of the $57,271 convertible
                  debentures.

              These transactions have been excluded from the statements of cash
              flows.

Note 12       DISCONTINUED OPERATIONS

              During the nine months ended September 30, 2006, concurrent with
              the name change of the Company (Note 7), the Company announced its
              intention to shift its direction of business towards the
              acquisition, exploration and development of oil and gas projects.
              Previously, the Company's business was the collection, analysis
              and banking of personal DNA data. Assets, liabilities and results
              of operations from the Company's previous business have been
              disclosed as discontinued operations for the nine months ended
              September 30, 2006 and prior periods have been restated to conform
              with the current presentation.

              The balance sheets include the following amounts related to
              discontinued operations:

<TABLE>
<CAPTION>

                                                                September 30,     December 31,
                                                                    2006              2005
                                                                _____________     ____________
<S>                                                                <C>               <C>

            Current assets of discontinued operations:
              Accounts receivable                                   $   -            $1,000
                                                                    =====            ======

            Current liabilities of discontinued operations:
              Unearned revenue                                      $   -            $7,500
                                                                    =====            ======
</TABLE>



                                       18

<PAGE>


Radial Energy Inc.
(formerly BV Pharmaceutical, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED) - Page 11


Note 12       DISCONTINUED OPERATIONS - (cont'd)

              Net income (loss) from discontinued operations are as follows:

<TABLE>
<CAPTION>


                                                                                        June 30,
                                                                                      2000 (Date of
                                         Three months ended     Nine months ended     Inception) to
                                           September 30,          September 30,       September 30,
                                         2006          2005      2006        2005         2006
                                         ____          ____     ______       ____     _____________
<S>                                      <C>            <C>     <C>          <C>        <C>
            Revenues
              License fees               $  -          $  -     $    -       $  -       $ 24,000
              Other income                  -             -      8,500        480         10,180
                                         ____          ____     ______       ____       ________

                                            -             -      8,500        480         34,180
                                         ____          ____     ______       ____       ________
            Administrative expenses
              Bad debt                      -             -          -          -          1,000
              Intellectual property
               acquisition costs            -             -          -          -         50,000
              Marketing research
               and development              -             -          -          -         10,000
                                         ____          ____     ______       ____       ________

                                            -             -          -          -         61,000
                                         ____          ____     ______       ____       ________
            Income (loss) from
             discontinued operations     $  -          $  -     $8,500       $480       $(26,820)
                                         ====          ====     ======       ====       ========


              Cash flows from discontinued operations are as follows:

                                                                                       June 30,
                                                                                     2000 (Date of
                                                               Nine months ended     Inception) to
                                                                 September 30,       September 30,
                                                                2006       2005          2006
                                                               _______    ______     _____________

            Net income (loss) from discontinued operations     $ 8,500    $  480       $(26,820)
            Changes in non-cash working capital balances
             related to operations
               Accounts receivable                               1,000         -              -
               Unearned revenue                                 (7,500)    7,500              -
                                                               _______    ______       ________

            Increase (decrease) in cash from discontinued
             operations                                        $ 2,000    $7,980       $(26,820)
                                                               =======    ======       ========
</TABLE>


Note 13       COMPARATIVE FIGURES

              Certain of the comparative figures for the nine months ended
              September 30, 2005, have been reclassified to conform with the
              current periods presentation.


                                       19


<PAGE>


ITEM 2.  MANAGEMENT'S PLAN OF OPERATION

CAUTIONARY STATEMENT

     You should read the following discussion and analysis in conjunction with
the financial statements and related notes thereto contained in Part I, Item 1
of this report. The information contained in this Quarterly Report on Form
10-QSB is not a complete description of our business or the risks associated
with an investment in our common stock. We urge you to carefully review and
consider the various disclosures made by us in this report and in our other
reports filed with the Securities and Exchange Commission, or SEC, including our
Registration Statement on Form SB-2 filed with the SEC on November 1, 2006, that
discuss our business in greater detail.

     This report contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Reference is made in particular to the description of our plans and
objectives for future operations, assumptions underlying such plans and
objectives, and other forward-looking statements included in this report. Such
statements may be identified by the use of forward-looking terminology such as
"may," "will," "expect," "believe," "estimate," "anticipate," "intend,"
"continue," or similar terms, variations of such terms or the negative of such
terms. Such statements are based on management's current expectations and are
subject to a number of factors and uncertainties, which could cause actual
results to differ materially from those described in the forward-looking
statements. Such statements address future events and conditions concerning,
among others, capital expenditures, earnings, litigation, regulatory matters,
liquidity and capital resources and accounting matters. Actual results in each
case could differ materially from those anticipated in such statements by reason
of factors such as future economic conditions, changes in consumer demand,
legislative, regulatory and competitive developments in markets in which we
operate, results of litigation and other circumstances affecting anticipated
revenues and costs, and the risk factors set forth below under the heading "Risk
Factors." We expressly disclaim any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained
herein to reflect any change in our expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.

     As used in this Form 10-QSB, "we," "us" and "our" refer to Radial Energy
Inc., which is also sometimes referred to as the "Company."

CORPORATE HISTORY

     Our company was incorporated in the State of Nevada on June 30, 2000, under
the name of "All Printer Supplies.com." On April 17, 2003, we changed our name
to "BV Pharmaceuticals, Inc." and became a provider of information and services
in the areas of personal DNA collection, analysis, profiling, banking and DNA
profile database maintenance. Effective as of April 3, 2006, through a statutory
merger with our wholly owned subsidiary in which we were the surviving
corporation, we changed our name to "Radial Energy Inc.", and we also changed
our business plan as discussed below.

GENERAL

     In March 2006, we began a new business plan concentrating on the
acquisition, exploration, development, and production of domestic and
international oil and gas projects. Radial Energy's primary focus is on
identifying previously drilled but subsequently abandoned wells that encountered
and/or tested live oil or natural gas indicating the presence of marketable
hydrocarbons, reservoir, and trap. As of the date of filing of this report, we
have acquired working interests in projects in South America and in Texas and
are continuing to explore other opportunities in North America and Latin
America.


                                                                              20
================================================================================


<PAGE>


     We are a development stage company that has not generated revenues from our
current operations in the oil and gas industry. There is no historical financial
information about Radial Energy upon which to base an evaluation of our
performance. We cannot guarantee we will be successful in our new core business
or in any business operations. Our business is subject to risks inherent in the
establishment of a new business enterprise, including limited capital resources
and in the exploration of oil and gas reserves.

     We have no assurance that future financing will be available on acceptable
terms. If financing is not available on satisfactory terms, we may be unable to
continue with our current business plan. If equity financing is available to us
on acceptable terms, it could result in additional dilution to our existing
stockholders.

BUSINESS

     BLOCK 100, HUAYA ANTICLINE, PERU

     Pursuant to a Letter of Intent dated April 19, 2006, and a related Joint
Operating Agreement effective as of May 11, 2006, we have acquired rights to a
20% working interest and 18% revenue interest in the Huaya Anticline Project,
Block 100 oil prospect located in the Ucayali Basin, Peru. The project
encompasses a structural closure of approximately 500 acres, with the potential
for up to 41 well locations. We acquired the interest in the Block 100 project
from Ziegler-Peru, Inc., an American company based in Texas, which sold the
interest to us and will retain a 10 percent interest. The majority interest is
owned by the concession-holder, Compania Consultora de Petroleo, S.A., a
well-known consulting company based in Lima, Peru. While Compania Consultora is
the operator of record for the concession, Ziegler-Peru will act as contract
driller and operator for the block.

     As consideration for this interest, which is only for one well, we agreed
to pay a total of $1,650,000, which funds also cover the acquisition of certain
equipment to be used for drilling, testing, and evaluation of the first well. As
of the date of the filing of this report, we have paid in full our total
financial obligation for the first well.

     After drilling of the first well is complete, we will have the option to
proceed with the project by funding the drilling, testing and evaluation of
another two wells on the property for an additional $1,650,000, which funds are
expected to cover the acquisition and installation of all production facilities
required to bring the hydrocarbons produced to market. Thereafter, we will have
the option to pay for our 20% working interest share of the development and
operation of the project. In the event Radial Energy and the other participating
parties decide that the project is not feasible, the equipment acquired will be
sold and we will be entitled to 67% of the proceeds.

     A third-party geological assessment conducted by Gustavson Associates of
Boulder, Colorado, a consultant contracted by Radial Energy, estimates that the
Block 100 project, if successful, may have recoverable in place reserves between
15.3 and 29.5 million barrels of oil (MMBO). While management believes the
prospect is a low-risk opportunity to discover and develop a field with
production potential, there can be no assurance the prospect will achieve such
potential. The first well is expected to be drilled during the fourth quarter of
2006, with production anticipated by year end.

     CHEROKEE COUNTY, TEXAS

     Pursuant to an Assignment Agreement dated June 27, 2006, we acquired all of
the rights and obligations of Pin Petroleum Partners Ltd., a Canadian company,
under three leasehold assignment agreements to properties located in Cherokee
County, Texas (collectively, the "Cherokee Agreements") with Skyline Energy LLC,
a company based in Texas. The prospects involve three separate exploratory oil
and gas prospects, known as the Junction Prospect, the Northwest Jacksonville


                                                                              21
================================================================================


<PAGE>


Prospect, and the Highway 79 Prospect. As consideration for the assignment, we
agreed to pay Pin Petroleum Partners a total of $700,000 by October 25, 2006
along with a four percent overriding royalty interest from our share of net
revenue interest. On September 29, 2006, we entered into an amendment to the
Assignment Agreement with Pin Petroleum Partners extending the payment date to
November 17, 2006. We have not yet made any payments for the assignment as of
the date of this report. Prior to the assignment, Pin Petroleum Partners had
provided to the operator of the prospects, MLC Operating, LP, $443,790 to cover
the original estimates for the drilling and completion costs for the initial
well on each of the three prospects. This pre-payment by Pin Petroleum Partners
has been assigned to Radial Energy. The funds will cover our share of the
estimated capital expenditures to drill the first test wells on each of the
three prospects. If one or more of these initial wells results in a successful
discovery, the operator may request additional funds to cover completion costs
if the original funds do not cover the current costs of completion. For each of
the three prospects, we hold a 30% working interest before payout of initial
investment, and a 22.5% working interest after payout, with payout determined on
a project basis.

     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. The Northwest
Jacksonville Prospect leasehold covers approximately 350 acres located in
northern Cherokee County. The Highway 79 Prospect is located in northwestern
Cherokee County, one mile west of Jacksonville, Texas, and the prospect leases
cover approximately 340 net acres. While calculations based on preliminary
geological analysis, reservoir studies and interpretation estimate that the
prospects have oil and natural gas production potential, there is no assurance
that any such potential will be achieved. We have begun drilling and testing in
the prospects. Our drilling and testing in the Highway 79 Prospect resulted in
an unsuccessful test, and we will not continue to explore in that prospect. We
will continue to explore in the Junction Prospect and the Jacksonville Prospect.

     BLOCK, MIDDLE MAGDALENA VALLEY OF COLOMBIA

     Pursuant to a binding letter of intent dated August 23, 2006, Maxim Well
Services Ltd. ("Maxim"), a company with its principal place of business in
Bogota, Colombia, we agreed to negotiate and enter into a joint operating
agreement, the purpose of which is for Radial Energy to acquire a 20% working
interest in the right to explore and develop oil reserves and production on the
9,000 hectare (22,239 acre) "Bosque Block" located in prolific Middle Magdalena
Valley of Colombia.

     We will be required to contribute $2.2 million in cash in stages beginning
on execution of the joint operating agreement. Three Hundred Fifty Thousand
Dollars ($350,000) will be due upon signing the joint operating agreement and
another $350,000 will be due sixty (60) days following the signing of the joint
operating agreement. The remaining $1,500,000 will be due 15 days following any
capital call made by Maxim at any time following the execution of the joint
operating agreement.

     Until such time that we recoup $1,500,000 of our investment, we will
receive a 33.33% participation in distributions. Following recoupment of $1.5
million of our investment, our interest will remain at 20 percent.

     The parties intend to enter into the joint operating agreement by November
22, 2006. If the parties fail to enter into the joint operating agreement by
November 22, 2006, then Maxim will have no obligation to enter into the joint
operating agreement or accept the investment from us on the terms expressed in
the letter of intent. Further, if we fail to properly execute the joint
operating agreement, we will be liable to Maxim for a termination fee of up to
$200,000 as follows: (a) $50,000 if we terminate at any time on or before the
date the Colombian government issues the appropriate authority to Maxim to begin
operations at the site, (b) a total of $100,000 if we terminate following the
date the Colombian government issues such authority, and (c) a total of $200,000
if we terminate more than thirty (30) days following the date the Colombian
government issues such authority.


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     ONGOING ACTIVITIES

     Additionally, management is currently investigating and in some cases is in
negotiations with various parties in both the U.S. and Colombia to acquire both
producing and prospective assets, but as of the date of this report had not
reached formal agreement on any of these opportunities.

DESCRIPTION OF PROPERTY

     The agreements relating to the Block 100 prospect entitle us to a 20%
working interest in oil and gas leases covering approximately 500 acres in the
Huaya Anticline Project, Block 100 oil prospect located in the Ucayali Basin,
Peru. The leases have a primary term of 30 years from and after March 2004.

     Pursuant to the Assignment Agreement and our resulting rights under the
Cherokee Agreements for each of the Junction Prospect, the Northwest
Jacksonville Prospect, and the Highway 79 Prospect, we hold a 30% working
interest before payout of initial investment and a 22.5% working interest after
payout. The leases have primary terms of three years and are renewable so long
as drilling operations occur during the primary terms.

     Our principal office is located at 1200 Smith Street, Suite 1600, Houston,
Texas 77002. We also rent a single office space located at 225 Marine Drive,
Blaine, Washington 98230. The monthly rent for the Houston office is
approximately $1,300 and the monthly rent and incidentals for the Washington
office is approximately $800.

PLAN OF OPERATION

     Our business plan is to identify, acquire, and develop low-risk oil and gas
exploration and development opportunities throughout North and South America,
with a primary focus on identifying previously drilled but subsequently
abandoned exploratory wells that encountered and/or tested live oil or natural
gas. We are flexible in our approach and will pursue opportunities as they arise
both in North America and in countries throughout Latin America that are
friendly to foreign investments, where factors such as lower production taxes
and positive government incentives provide for significant opportunities with
low risk. We plan to become the operator of record in the majority of our future
projects. To date, execution of our business plan has largely focused on
acquiring prospective rights to oil and gas leases and properties. We intend to
establish a going forward exploration and development plan.

     Since inception, we have funded our operations primarily from the private
placement of common stock and warrants. Although we expect that, during the next
12 months, our operating capital needs will be met from our current economic
resources and by additional private capital stock transactions, there can be no
assurance that funds required will be available on terms acceptable to us or at
all. Without additional financing, we expect that our current working capital
will be able to fund our operations through the first half of 2007. If we are
unable to raise sufficient funds on terms acceptable to us, we may be unable to
complete our business plan. If equity financing is available to us on acceptable
terms, it could result in additional dilution to our stockholders.

     As of the date of the filing of this report, we have two full-time
employees, our Chief Executive Officer and our Chief Operating Officer. We do
not expect any material changes in the number of employees over the next 12
months. However, if we are successful in our initial and any subsequent drilling
programs, we may retain additional employees. We have relied on, and will
continue to rely on, outside consultants for services.


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<PAGE>


     COMPETITORS

     The oil and gas industry is intensely competitive. We compete with numerous
individuals and companies, including many major oil and gas companies, which
have substantially greater technical, financial, and operational resources and
staffs. Accordingly, there is a high degree of competition for desirable oil and
gas leases, suitable properties for drilling operations, and necessary drilling
equipment, as well as for access to funds. There are other competitors that have
operations in South America and the Texas area and the presence of these
competitors could adversely affect our ability to acquire additional leases and
rights to properties.

     GOVERNMENT REGULATIONS

     Our oil and gas operations are subject to various United States federal,
state, and local governmental regulations. Matters subject to regulation include
discharge permits for drilling operations, drilling and abandonment bonds,
reports concerning operations, the spacing of wells, and pooling of properties
and taxation. From time to time, regulatory agencies have imposed price controls
and limitations on production by restricting the rate of flow of oil and gas
wells below actual production capacity in order to conserve supplies of oil and
gas. The production, handling, storage, transportation and disposal of oil and
gas, by-products thereof, and other substances and materials produced or used in
connection with oil and gas operations are also subject to regulation under
federal, state, provincial and local laws and regulations relating primarily to
the protection of human health and the environment. To date, expenditures
related to complying with these laws, and for remediation of existing
environmental contamination, have not been significant in relation to the
results of operations of our company. The requirements imposed by such laws and
regulations are frequently changed and subject to interpretation, and we are
unable to predict the ultimate cost of compliance with these requirements or
their effect on our operations.


RISK FACTORS

     An investment in our common stock is speculative and involves a high degree
of risk and uncertainty. You should carefully consider the risks described
below, together with the other information contained in this report, including
financial statements and notes thereto of our company, before deciding to invest
in our common stock. In addition, you should carefully review the "Risk Factors"
set forth in our Registration Statement on Form SB-2 filed with the SEC on
November 1, 2006 and hereby incorporated by reference. The risks described
therein are not the only ones facing our company. Additional risks not presently
known to us or that we presently consider immaterial may also adversely affect
our company. If any of the following risks occur, our business, financial
condition and results of operations and the value of our common stock could be
materially and adversely affected.


RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND
2005

     From inception to September 30, 2006, we had a loss of $1,970,471. Of this
amount, $379,470 was generated in the three-month period ended September 30,
2006 and $1,799,501 was generated in the nine-month period ended September 30,
2006, as compared to $4,321 and $25,907, respectively, for the comparable
periods in 2005.

     Administrative expenses increased from $4,321 for the three-month period
ended September 30, 2005 to $379,470 for the comparable period in 2006 and
increased from $26,387 for the nine-month period ended September 30, 2005 to
$1,817,408 for the same period in 2006. The costs expended for the three and
nine months ended in 2006 include $39,063 and $68,580, respectively, for
consulting fees; $34,505 and $76,162, respectively, for investor relations


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<PAGE>


services; $67,493 and $84,944, respectively, for travel and related costs;
$82,800 and $1,342,000, respectively, for executive compensation and benefits;
$63,281 and $88,693, respectively, for professional fees; $17,460 and $46,610,
respectively, for marketing management services; $5,097 and $7,419,
respectively, for rent for office space; and $29,179 and $30,567, respectively,
for interest and bank charges. During the comparable periods in 2005, we
expended $425 and $425, respectively, for consulting fees; $24 and $2,588,
respectively, for interest and bank charges; and $3,399 and $11,009,
respectively, for professional fees. We are spending considerable time traveling
in Latin America for our ongoing operations, especially in Peru and Colombia. We
expect to continue to undertake trips to manage and represent our company during
any operational activities occurring on existing assets, and to perform and
manage all new business development activities, especially those relating to due
diligence efforts for new projects under letters of intents or in various stages
of negotiation. For this reason, operating expenses related to this effort are
expected to be higher than the past through the end of 2006. Currently, we plan
to have a representative present during the drilling of the first well on the
Block 100 project, now scheduled to start mid-November.

LIQUIDITY AND CAPITAL RESOURCES

     As of September 30, 2006, our total assets were $2,428,263, which included
prepaid expenses of $7,857 and $1,980 in computer equipment. In addition, it
included $2,418,426 we invested in the Anticline project and the Cherokee County
project. Our total liabilities were $1,198,388, all of which were current,
resulting in a deficiency in working capital of $1,190,531. As of December 31,
2005, our total assets were $2,211, all of which were current, and our total
liabilities were $15,935. The increase in total assets is a result of an
increase in cash from the sale of our equity units as part of a private
placement which commenced in February 2006 from which we received total cash
proceeds of $1,850,000. For a discussion on our investments to date with respect
to our current exploratory projects, see also the discussion in the Business
section above.

     Despite our net loss from continuing activities of $1,808,001 for the
nine-month period ended September 30, 2006 and our investment and costs
associated with our oil and gas exploration participations of $2,418,426, we
have been able to obtain additional operating capital through private equity
funding sources. Our Management's plan includes the continued development and
eventual implementation of our business plan as discussed in the Plan of
Operation section above. We have relied upon equity funding since inception.

     As of the date of this report, we have yet to generate any revenues from
operations of our new core business. From inception to September 30, 2006, we
have accumulated losses of $1,970,471 and expect to incur further losses in the
development of our business, all of which casts doubt about Radial Energy's
ability to continue as a going concern. Our ability to continue as a going
concern is dependent upon our ability to generate future profitable operations
and/or to obtain the necessary financing to meet our obligations and repay our
liabilities arising from normal business operations when they become due.

OFF-BALANCE SHEET ARRANGEMENTS

     We have no off-balance sheet arrangements at September 30, 2006.


ITEM 3.  CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

     Under the supervision and with the participation of our management,
including our principal executive officer and principal financial officer, we
conducted an evaluation of our disclosure controls and procedures, as such term


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<PAGE>


is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of
1934, as amended. Based on this evaluation, our principal executive officer and
our principal financial officer concluded that, as of the end of the period
covered by this quarterly report, our disclosure controls and procedures were
effective to ensure that the information required to be disclosed by us in the
reports that we file or submit under the Securities Exchange Act of 1934 is
accumulated and communicated to management, including our chief executive
officer and chief financial officer, to allow timely decisions regarding
required disclosure, and that such information is recorded, processed,
summarized and reported within the time periods prescribed by the SEC.

CHANGES IN INTERNAL CONTROLS

     There were no significant changes in our internal controls or in other
factors that could materially affect these controls subsequent to the evaluation
date. We have not identified any significant deficiencies or material weaknesses
in our internal controls, and therefore there were no corrective actions taken.









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<PAGE>


                           PART II--OTHER INFORMATION


ITEM 6.  EXHIBITS

10.1 Letter of Intent by and between Radial Energy Inc. and Maxim Well Services
     Ltd. dated August 23, 2006. (Translated into English and filed pursuant to
     Rule 306 of Regulation S-T).

10.2 Amendment to Assignment Agreement by and between Radial Energy Inc. and Pin
     Petroleum Partners Ltd. dated September 29, 2006.

31.1 Certifications of the Chief Executive Officer provided pursuant to Section
     302 of the Sarbanes-Oxley Act of 2002.

31.2 Certifications of the Chief Financial Officer provided pursuant to Section
     302 of the Sarbanes-Oxley Act of 2002.

32.1 Certifications of the Chief Executive Officer and Chief Financial Officer
     provided pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section
     906 of the Sarbanes-Oxley Act of 2002.









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<PAGE>


                                   SIGNATURES


         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                 RADIAL ENERGY INC.


                                 By: /s/  G. LEIGH LYONS
                                     ___________________________________________
                                     G. Leigh Lyons
                                     President, Chief Executive Officer, and
                                     Chief Financial Officer
                                     (Principal Executive and Financial Officer)



Date:   November 14, 2006
















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<PAGE>




                                  EXHIBIT INDEX


EXHIBIT
NUMBER          DESCRIPTION OF EXHIBIT


10.1 Letter of Intent by and between Radial Energy Inc. and Maxim Well Services
     Ltd. dated August 23, 2006. (Translated into English and filed pursuant to
     Rule 306 of Regulation S-T).

10.2 Amendment to Assignment Agreement by and between Radial Energy Inc. and Pin
     Petroleum Partners Ltd. dated September 29, 2006.

31.1 Certifications of the Chief Executive Officer provided pursuant to Section
     302 of the Sarbanes-Oxley Act of 2002.

31.2 Certifications of the Chief Financial Officer provided pursuant to Section
     302 of the Sarbanes-Oxley Act of 2002.

32.1 Certifications of the Chief Executive Officer and Chief Financial Officer
     provided pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section
     906 of the Sarbanes-Oxley Act of 2002.




























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