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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION


                             WASHINGTON, D.C. 20549


                                  FORM 10-QSB/A


                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


          1200 SMITH STREET, SUITE 1600, HOUSTON, TEXAS 77002
          ____________________________________________________________
                 (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.................................. 22

     Item 3. Controls and Procedures......................................... 27


PART II.   OTHER INFORMATION


     Item 6. Exhibits.......................................................  29


SIGNATURES..................................................................  30

EXHIBIT INDEX ..............................................................  31


                                                                               2
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<PAGE>

                                EXPLANATORY NOTE

This Quarterly Report on Form 10-QSB/A is being filed as Amendment No. 1 to the
Quarterly Report on Form 10-QSB of Radial Energy Inc. for the quarter ended
September 30, 2006, which was filed with the Securities and Exchange Commission
(the "SEC") on November 14, 2006 (the "Original Form 10-QSB"). This Amendment is
being filed in response to comments from the SEC resulting from their review of
the Company's Form SB-2 (filed on November 1, 2006). Except as expressly stated
in this Amendment No. 1, generally the amended quarterly report speaks only as
of the filing date of the Original Form 10-QSB and generally does not reflect
any events occurring after September 30, 2006. See the Company's Form 8-K's
filed with the SEC since September 30, 2006 for updated information about the
Company's financial affairs.


<PAGE>

                         PART I.--FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS


                              RADIAL ENERGY INC.

                       (formerly BV Pharmaceutical, Inc.)

                         (An Exploration 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.)
                          (An Exploration 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, unproven - 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                       (194,472)        (170,970)
Deficit accumulated during the exploration stage                     (1,775,999)               -
                                                                   ____________      ___________

                                                                      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.)
                          (An Exploration Stage Company)
                        INTERIM STATEMENTS OF OPERATIONS
     for the three and nine-month periods ended September 30, 2006 and 2005
 and for the period April 1, 2006 (Date of Exploration Stage) to September 30, 2006
                             (Stated in US Dollars)
                                   (UNAUDITED)

                                                                                                                  April 1, 2006
                                                                                                                   (Date of
                                                        Three months ended               Nine months ended       Exploration Stage)
                                                           September 30                    September 30          to September 30,
                                                       2006            2005            2006             2005         2006
                                                       ___________   ____________   ___________   ____________    ___________
<S>                                                    <C>           <C>            <C>           <C>             <C>

Administrative expenses

    Administration fees                                $     5,831   $          -   $    14,331   $          -    $    14,331
    Amortization                                               104              -           104              -            104
    Consulting fees - Note 8                                39,063            425        68,580            425         54,626
    Executive compensation and benefits - Note 8            82,800              -     1,342,000              -      1,342,000
    Filing fees                                              3,613              -         7,584          6,613          5,603
    Financing fees - Note 9                                 11,250              -        11,250              -         11,250
    Interest and bank charges                               29,179             24        30,567          2,588         30,094
    Investor relations                                      34,505              -        76,162              -         66,162
    Marketing management services                           17,460              -        46,610              -         46,610
    Office and miscellaneous                                 1,733            473         4,384          3,898          1,671
    Professional fees                                       63,281          3,399        88,693         11,009         81,825
    Rent                                                     5,097              -         7,419              -          7,419
    Telephone                                               14,419              -        15,987              -         15,987
    Transfer agent fees (recovery)                           1,745              -         4,802          1,581           (618)
    Travel and related costs                                67,493              -        84,944              -         84,944
    Website maintenance                                      1,897              -        13,991            273         13,991
                                                       ___________   ____________   ___________   ____________    ___________

Loss before other items                                   (379,470)        (4,321)   (1,817,408)       (26,387)    (1,775,999)


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

Net loss from continuing operations                       (379,470)        (4,321)   (1,808,001)       (26,387)    (1,775,999)


Income from discontinued operations - Note 12                    -              -         8,500            480              -
                                                       ___________   ____________   ___________   ____________    ___________


Net loss for the period                                $  (379,470)  $     (4,321)  $(1,799,501)  $    (25,907)   $(1,775,999)
                                                       ===========   ============   ===========   ============    ===========


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.)
                         (An Exploration Stage Company)
                        INTERIM STATEMENTS OF CASH FLOWS
           for the nine-month period ended September 30, 2006 and 2005
          and for the period April 1, 2006 (Date of Exploration Stage)
                             to September 30, 2006
                             (Stated in US Dollars)
                                   (UNAUDITED)

                                                                                                                 A pril 1, 2006
                                                                                                                    (Date of
                                                                                        Nine months ended        Exploration Stage)
                                                                                          September 30,           to September 30,
                                                                                       2006          2005            2006
                                                                                    ___________   ____________    ___________
<S>                                                                                 <C>           <C>             <C>

Cash Flows from (used in) Operating Activities

   Net loss for the period                                                          $(1,799,501)  $    (26,387)   $(1,775,999)
   Less Income from discontinued operations                                              (8,500)          (480)             -
   Deduct items not affecting cash:
      Amortization                                                                          104              -            104
      Gain on note payable forgiven                                                      (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)             -          2,154
      Accounts payable and accrued liabilities                                          765,984         (6,566)       756,531
                                                                                    ___________   ____________    ___________
Cash used in operating activities - continuing                                          160,423        (32,953)       202,390
Cash provided by operating activities - discontinued                                      2,000          7,980              -
                                                                                    ___________   ____________    ___________
Net cash provided by (used in) Operating Activities                                     162,423        (24,973)       202,390
                                                                                    ___________   ____________    ___________

Cash Flows used in Investing Activities
   Acquisition of equipment                                                              (2,084)             -         (2,084)
   Oil and gas properties                                                            (2,418,426)             -     (2,418,426)
                                                                                    ___________   ____________    ___________

Net cash used in Investing Activities                                                (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              -      1,852,500
   Share subscribed                                                                           -              -       (250,000)
   Increase in note payable                                                             365,000              -        385,000
   Convertible debentures                                                                     -          2,479              -
                                                                                    ___________   ____________    ___________

Net cash provided by Financing Activities                                             2,256,876          2,479      2,026,876
                                                                                    ___________   ____________    ___________


Decrease in cash during the period                                                       (1,211)       (22,494)      (191,244)

Cash, beginning of the period                                                             1,211         24,964        191,244
                                                                                    ___________   ____________    ___________

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.)
                         (An Exploration 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        Deficit
                                                                                          Accumulated    Accumulated
                                                             Additional Paid-in           During the     During the
                                       Common Stock                Capital                Development    Exploration
                                  *Shares      **ParValue    Shares     Warrants             Stage          Stage         Total
                                 ___________   __________    __________    ________       ___________    ___________    _________
<S>                              <C>           <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.)
                         (An Exploration 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        Deficit
                                                                                          Accumulated    Accumulated
                                                             Additional Paid-in           During the     During the
                                       Common Stock                Capital                Development    Exploration
                                  *Shares      **ParValue    Shares     Warrants             Stage          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                    -           -             -            -           (23,502)    (1,775,999)  (1,799,501)
                                 ___________   __________    _________     ________       ___________    ___________    _________

Balance, September 30, 2006       44,585,824   $  44,586    $2,250,810     $904,950       $  (194,472)   $(1,775,999)  $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.)
                         (An Exploration 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.)
(An Exploration Stage Company)
Notes to the Financial Statements
September 30, 2006
(Stated in US Dollars)
(UNAUDITED)



Note 3        ADDITIONAL ACCOUNTING POLICIES

              EXPLORATION STAGE COMPANY

              The Company  complies with  Financial  Accounting  Standard  Board
              Statement No. 7 the Securities and Exchange Commission Act Guide 7
              for its  characterization  of the Company as an Exploration  Stage
              Company. The Company is devoting  substantially all of its present
              efforts  to  establish  a new  business  and  none of its  planned
              principal operations have commenced.  For the purpose of providing
              cumulative  amounts  for the  statements  of  operations  and cash
              flows,  these  amounts  consider  only those losses for the period
              from the Company's new exploration stage activity  effective April
              1, 2006.

              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.

              If capitalized  costs, less related  accumulated  amortization and
              deferred  income taxes,  exceed the "full cost ceiling" the excess
              is  expensed  in the period  such  excess  occurs.  The "full cost
              ceiling" is  determined  based on the present  value of  estimated
              future net revenues  attributed to proved reserves,  using current
              prices less estimated future  expenditures  plus the lower of cost
              and fair value of unproven properties within the cost centre.

              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  relationship
              between  capitalized  costs  and  proved  reserves  of oil and gas
              attributable  to a cost  centre.  Royalties  paid  net of any  tax
              credits received are netted with oil and gas sales.

                                       10

<PAGE>

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


Note 3        ADDITIONAL ACCOUNTING POLICIES - (cont'd)

              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>

                                                                                                   December 31,
                                                         September 30, 2006                            2005
                                         ____________________________________________________    _________________
                                                             ACCUMULATED
                                               COST          DEPRECIATION          NET                  NET

<S>                                      <C>               <C>              <C>                  <C>
             Computer equipment          $       2,084     $         104    $       1,980        $           -
                                         =============     =============    =============        ==============

</TABLE>

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.

                                       11

<PAGE>

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

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

              i)  Anticline Project

                  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.

              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.


                                       12

<PAGE>

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

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.

              On  February  10,  2006,  the  Company   repurchased  a  total  of
              29,000,000  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  common shares.  Consequently,  the number of shares
              actually  issued  immediately  prior to the  split  was  8,766,456
              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.


                                       13

<PAGE>

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

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

              n 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.

              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


                                       14

<PAGE>

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

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>

                                                                                                         April 1, 2006
                                                                                                            (Date of
                                                Three months ended             Nine months ended          Exploration
                                                                                                           Stage) to
                                                   September 30,                 September 30,           September 30,
                                               2006            2005           2006           2005             2006
                                               ____            ____           ____           ____             ____
<S>                                        <C>            <C>             <C>            <C>            <C>
             Consulting fees               $         -    $        -      $      9,000   $         -    $            -
             Executive  compensation  and
             benefits                            82,800            -         1,342,000             -         1,342,000
                                           ____________   __________      ____________   ___________    ______________
                                           $     82,800   $        -      $  1,351,000   $         -    $    1,342,000
                                           ============   ==========      ============   ===========    ==============
</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.

              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.

                                       15

<PAGE>

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

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

             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

                  (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.



                                       16

<PAGE>

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

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.

                  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%.


                                       17
<PAGE>

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

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

              i) - (cont'd)

                  The warrants are detachable  from the  convertible  debentures
                  and will been accounted for separately in accordance  with APB
                  14 "Accounting for Convertible Debt and Debt Issued with Stock
                  Purchase Warrants". The conversion features of the convertible
                  debentures  will  be  classified  as  equity   instruments  in
                  accordance with EITF 00-19.  The proceeds of the issuance will
                  be  allocated  on a relative  fair  value  basis  between  the
                  convertible   debentures   and  the   detachable   warrant  in
                  accordance  with APB 14.  Subsequent to the  allocation of the
                  proceeds  of  the  convertible   debenture  financing  and  in
                  accordance  with EITF  00-27,  the  Company  will  record  the
                  beneficial  conversion  feature, if any, as additional paid-in
                  capital.  The Company will  amortize  the  discount  using the
                  effective   interest   method  from  commitment  date  to  the
                  redemption date.

              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.


                                       18
<PAGE>

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


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
            Current assets of discontinued operations:                                ____              ____

<S>                                                                             <C>               <C>
              Accounts receivable                                               $             -   $         1,000
                                                                                ===============   ===============
            Current liabilities of discontinued operations:
              Unearned revenue                                                  $             -   $         7,500
                                                                                ===============   ===============
</TABLE>

                                       19
<PAGE>

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


Note 12       DISCONTINUED OPERATIONS - (cont'd)

              Net income from discontinued operations are as follows:

<TABLE>
<CAPTION>
                                                                                                        April 1, 2006
                                                                                                          (Date of
                                                                                                         Exploration
                                              Three months ended             Nine months ended            Stage) to
                                                 September 30,                 September 30,            September 30,
                                             2006            2005           2006           2005             2006
                                             ____            ____           ____           ____             ____

<S>                                      <C>            <C>             <C>            <C>            <C>
            Revenues
              License fees               $          -   $          -    $         -    $          -   $            -
              Other income                          -              -          8,500             480                -
                                         ____________   ____________    ___________    ____________   ______________
                                                    -              -          8,500             480                -
                                         ____________   ____________    ___________    ____________   ______________

            Administrative expenses
              Bad debt                              -              -              -               -                -
              Intellectual property
               acquisition costs                    -              -              -               -                -
              Marketing research
               and development                      -              -              -               -                -
                                         ____________   ____________    ___________    ____________   ______________
                                                    -              -              -               -                -
                                         ____________   ____________    ___________    ____________   ______________
            Income from
             discontinued operations     $          -   $          -    $     8,500    $        480   $            -
                                         ============   ============    ===========    ============   ==============
</TABLE>

              Cash flows from discontinued operations are as follows:

<TABLE>
<CAPTION>
                                                                                                        April 1, 2006
                                                                                                          (Date of
                                                                                                         Exploration
                                                                             Nine months ended            Stage) to
                                                                               September 30,            September 30,
                                                                           2006            2006             2006
            Cash Flows used in Operating Activities                        ____            ____             ____

<S>                                                                   <C>             <C>              <C>
            Net income from discontinued operations                   $       8,500   $       480      $            -
            Changes in non-cash working capital balances related
             to operations
               Accounts receivable                                            1,000             -                   -
               Unearned revenue                                              (7,500)        7,500                   -
                                                                      ______________  ___________      ______________

            Increase in cash from discontinued operations             $       2,000   $     7,980      $            -
                                                                      ==============  ===========      ==============
</TABLE>

                                       20

<PAGE>

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


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.


                                       21
<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.


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     We are an exploration 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


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<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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<PAGE>


     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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     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.


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ITEM 3.  CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

     Our management, with the participation of our chief executive officer and
chief financial officer, evaluated the effectiveness of our disclosure controls
and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934
as amended (the "Exchange Act"). In designing and evaluating the disclosure
controls and procedures, management recognized that any controls and procedures,
no matter how well designed and operated, can provide only reasonable assurance
of achieving the desired control objectives. In addition, the design of
disclosure controls and procedures must reflect the fact that there are resource
constraints and that we are required to apply our judgment in evaluating the
benefits of possible controls and procedures relative to our costs.

Based on that evaluation, our chief executive officer and chief financial
officer concluded that, as of September 30, 2006, our disclosure controls and
procedures are effective to provide reasonable assurance that information
required to be disclosed by us in the reports that we file or submit under the
Exchange Act (i) is accumulated and communicated to our management, including
our chief executive officer and chief financial officer, as appropriate, to
allow timely decisions regarding required disclosure, and (ii) is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission rules and forms.

CHANGES IN INTERNAL CONTROLS

     There were no changes in our internal control over financial reporting that
occurred during the period covered by this Quarterly Report on Form 10-QSB that
have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting.


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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:   February __, 2007







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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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