SOURCE: Friendly Energy Exploration

July 02, 2008 07:30 ET

Friendly Energy Advances Initial Payment Toward Infield Development Plan

CARSON CITY, NV--(Marketwire - July 2, 2008) - Friendly Energy Exploration (PINKSHEETS: FEGR) announces today that it has advanced the initial payment required under the terms of the Letter of Intent with Southwest Talpa L.L.C. for the development of certain leases totaling 1,300 acres located in Runnels County, Texas.

"This payment provides for the completion of the road to the existing producing well for the purposes of collecting the current production from the on-site tank battery. The production from this existing well is approximately 50 barrels of oil per day," states Company President, Douglas Tallant. "Upon the completion of a thirty day production run for this existing well, Friendly Energy and its partners Southwest Talpa L.L.C will determine an in-field drilling development plan of up to thirty wells for this lease based on current spacing of 40 acres per well. Volumetric estimates based upon results achieved in other nearby fields have been related into our estimates. The typical Serratt well produces in a range of 70,000 to 100,000 barrels ultimate recovery per well, giving the gross potential for this field of up to 3,000,000 barrels."

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.

For Additional Information:

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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