2009-08-19-2007-09-01-2007-09-01

Acquisition terminated

Benchmark Energy Corp., Calgary, (Toronto Venture: BEE) has terminated its plans to acquire privately held Colombia-based Rancho Hermoso SA for US$30 million. Radial Energy Inc., Houston, (OTCBB: RENG) was to have received a 10% participation in the acquisition. Benchmark undertook a due diligence review of Rancho and its assets, and based on the results, in particular Rancho's reserves, Benchmark terminated the agreement. Benchmark is still considering restructuring the proposed acquisition following more acceptable acquisition criteria. Rancho Hermoso operates the Rancho Hermoso and Entrerrios fields in the Llanos Basin, Colombia. The company has a production contract with state-owned Ecopetrol that covers 24,167 acres. Production is approximately 2,827 barrels of oil per day from three Mirador wells. Sparrow Financial Inc. holds 95% of the Rancho Hermosa shares.