SOURCE: Friendly Energy Exploration

July 27, 2011 09:15 ET

Friendly Energy Provides Drilling and Operations Update

BROWNWOOD, TX--(Marketwire - Jul 27, 2011) - Friendly Energy Exploration (OTCBB: FEGR).

Drilling Update

The company continues to rework wells on its leases consistent with previous announcements. While the company continues to improve its infrastructure, production continues to fluctuate as the company battles excessive heat in the region. We continue to be on pace to bring the wells we wish to bring back online into production within the next 45 days.

COO Rick Hutchins stated: "Daily temperatures continue to exceed 100 degrees which have caused us to be cautious with regards to operating our equipment. This has caused an expected fluctuation in production. However, this is normal this time of year, and we fully expect to have very consistent production in the near-term." Mr. Hutchins added, "We continue to be encouraged with the progress being made, and we are very excited about the short and long term prospects for the company."

The company currently has 16 wells producing and expects to have another 7 wells online within 45 days, bringing the total number of producing wells to 23 at that time. We expect with all wells producing, our consistent, daily oil and gas production should be an equivalent of 25 BOPD.

Operations Update

There are three areas of focus throughout the rest of this year: Reworking our existing wells which will include testing known, additional productive formations within the wells, expanding our lease portfolio, and drilling new wells. The company has recently reached an agreement with a financial partner to support its short term drilling efforts. The primary focus continues to be bringing all 35 existing wells back online as fast as possible.

We are actively seeking to acquire producing and non-producing leases in an around Texas in an effort to grow our portfolio of leases. We have begun talks with a couple of prospects and are involved in the due diligence process now.

Lastly, Friendly Energy's goal is to drill new wells in our highly productive areas. We continue to plan having one or two new wells drilled this year and more next year. Successful drilling will add a significant boost to our production levels.

"Rick and his team have designed a plan to get production ramped up to substantially higher levels. We continue to be on track to reach that goal this year," said Doug Tallant, CEO of Friendly Energy. Mr. Tallant added, "We have recently expanded our relationship within the financial community and are confident that we will be able to fund our drilling needs for this year."

About Friendly Energy:

Friendly Energy is an exploration, development and production company in the Oil and Gas Exploration Industry. The Company is focusing on low cost oil and gas recovery in the State of Texas and Oklahoma. Friendly Energy is committed to building shareholder value by taking advantage of the current market pricing of oil and gas and developing undeveloped reserves with little downside risk. Please see the company's website: www.fegr.biz

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.

Contact Information

  • Contact:
    Sean Tallant
    1 970-464-2619