SOURCE: Friendly Energy Exploration

December 06, 2010 08:00 ET

Friendly Energy to Begin Drilling New Wells

CARSON CITY, NV--(Marketwire - December 6, 2010) - Friendly Energy Exploration (OTCBB: FEGR) is pleased to announce that they will begin drilling up to ten new wells and re-work one existing well on two of its leases, the Byler lease and the Mud Creek lease. Drilling is expected to begin on or before January 7, 2011.

Phase 1 of the drilling program will include the drilling of four new wells and re-working one existing well. Phase two is expected to include the drilling of the remaining 6 new wells. Phase 2 is expected to start in the second quarter of 2011.

The company has agreed to terms with a group of private investors who have agreed to fund $1,250,000 for the project. The terms of the agreement are such that the investors will own 49% of the production rights to the wells while Friendly Energy will own the remaining 51%. No securities were issued as part of this transaction. 

"On each of the leases, we plan to drill five wells and re-work at least one existing well to the Marble Falls formation at about 2,300 feet," said Doug Tallant, CEO of Friendly Energy. "These leases also have shallower formations which could also be produced -- most notably the Fry sands and the Caddo limestone formations. This allows us to drill and complete wells at a pace of one well every 15-18 days. We estimate production will come in at 30 to 40 barrels of oil per day (BOPD), per well."

Doug Tallant stated that, "We are extremely excited to begin drilling the new wells which should allow the company to reach profitability much faster in 2011 than originally planned."

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 by 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

  • For Additional Information, contact:
    Sean Tallant
    1 970-464-2619

    Ross DiMaggio
    1 609 718 0777