SOURCE: Friendly Energy Exploration

August 04, 2008 08:00 ET

Friendly Energy Reports Suspension of Talpa Project

CARSON CITY, NV--(Marketwire - August 4, 2008) - Friendly Energy Exploration (PINKSHEETS: FEGR) announces today that its joint venture partners Southwest Talpa L.L.C. are in breach of its initial letter of Intent. Southwest Talpa L.L.C. have been unwilling and unable to produce verifiable production figures for the development well Frost Hensley #1, that the company requires to contractually move forward. To date the company has advanced $50,000.00 toward the completion of an access road to the well which has not been completed. The company believes that its joint venture partner has misappropriated these funds for purposes other than represented. The potential joint venture is for leases totaling 1300 acres located in Runnels County, Texas .

"The well's current production is indeterminate at this time. Pursuant to contract, the company was to receive production reports on a daily basis for a period of thirty days; however, the managing partner of Southwest Talpa L.L.C., Mr. Mike Eichenberg, has continually refused to meet his contractual obligations in furnishing the company with the production information in verifiable form," states Company President, Douglas Tallant. "It is unfortunate that the company has not been able to verify the information presented by its joint venture partner Southwest Talpa L.L.C. and its managing member Mr. Mike Eichenberg. Friendly Energy was positioning itself for the development of the 1300-acre oil lease to its maximum drill out based upon a 40-acre spacing. Now the company is in the unenviable position of seeking legal remedies for breach of contract and misappropriation of funds. The company is currently reviewing other prospects and will have a new development project in the near future."

Friendly Energy is committed to the exploration and development of its prospects to take advantage of the current market pricing in the price of oil and gas by developing undeveloped reserves with little downside risk.

Friendly Energy is a development stage company in the Oil and Gas Exploration Industry.

This news release contains information that is "forward-looking" in that it describes events and conditions, which Friendly Energy Exploration. ("FEGR") reasonably expects to occur in the future. Expectations for the future performance of the business of FEGR are dependent upon a number of factors, and there can be no assurance that FEGR will achieve the results as contemplated herein and there can be no assurance that FEGR will be able to conduct its operations or production from its properties will result from or continue as contemplated herein. Certain statements contained in this report using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond the Company's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. FEGR disclaims any obligation to update any forward-looking statement made herein.

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