“The completion of this final inspection and the receiving of Operator Status is just another milestone of achievement of the Friendly Energy Corp business plan,” states Company President, Douglas Tallant. “The company anticipates that it will be making its first oil sales within the next week. Upon completion of the first oil sales the company will begin establishing flow rates for the newly reworked wells on a one by one basis. The company continues to move closer every day to meeting its target production levels of 300 barrels of oil per day for the near future.”

The company continues to actively search for additional, existing, production to acquire in addition to any proven, low risk, infield drilling opportunities for both oil and gas.

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.

For Additional Information:
www.FriendlyEnergyCo.com
www.BearPawMarketing.com
Sean Tallant
1 970 434 4297
Email Contact

 

Included with this lease are eight existing wells that are currently shut in. Four of the eight wells have well head equipment in place. We believe that these wells can be brought on-line in a short period of time and for relatively low costs.

“The acquisition of this third Barnett Shale Lease is part of the company’s business plan to develop proven, low risk oil producing properties,” stated President, Douglas Tallant. “With four of the eight existing Mud Creek wells requiring very little rework, these wells will move the company closer to its production target of 300 barrels of oil per day.”

The company continues to actively search for additional production that fit our strategy of acquiring proven, low risk, infield drilling opportunities for both oil and gas. Friendly Energy is committed to the exploration and development of its prospects to take advantage of the current market pricing of oil and gas by developing undeveloped reserves with little downside risk.

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:

For Additional Information:
www.FriendlyEnergyCo.com
www.BearPawMarketing.com
Sean Tallant
1 970 434 4297
Email Contact

 

Oil production from these wells, as they have been brought online, is consistent with expectations, with the exact flow figures yet to be determined on a well by well basis. Currently the existing tank battery is holding over 620 barrels of oil, with the company working to expand existing storage capacity.

The company is continuing to pursue the bonding and licensing process in order to achieve “Operator” status in an effort to maximize the percentage return to the company upon the sale of the onsite oil in storage.

The progress for the reworking of these wells is consistent with the overall plan to bring online all ten wells by year end.

The company also reports that it is moving forward to bring online four of the nineteen existing wells recently acquired on the Byler Lease, which is reported as an acquisition of over six hundred acres of Barnett Shale lease property.

“The company is very pleased with the progress of the rework programs of the Panther Creek Prospect and the Byler Lease,” states Company President, Douglas Tallant. “The company anticipates that four of the nineteen Byler Lease wells will be brought online in the very near future. The company is well on track to meet its target production levels of 300 barrels of oil per day.”

The company is currently performing due diligence on another potential lease and will provide details as they become available.

The company continues to actively search for additional, existing production to acquire in addition to any proven, low risk, infield drilling opportunities for both oil and gas.

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.
Contact:

For Additional Information:
www.FriendlyEnergyCo.com
www.BearPawMarketing.com
Sean Tallant
1 970 434 4297
Email Contact

 

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

This following information specifies certain forward-looking statements of management of the company. Forward-looking statements are statements that estimate the happening of future events are not based on historical fact. Forward-looking statements may be identified by the use of forward-looking terminology, such as “may”, “shall”, “will”, “could”, “expect”, “estimate”, “anticipate”, “predict”, “probable”, “possible”, “should”, “continue”, or similar terms, variations of those terms or the negative of those terms. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements.

The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. No assurance can be given that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.

Liquidity and Capital Resources.

For the year ended December 31, 2008, we had total assets of $650,729, compared to total assets in 2007 of $483,184. The increase in assets was mainly due mainly to borrowing for participation in the Red Oak Prospect. At December 31, 2008, we had current liabilities of $1,520,961 which was represented by accounts payable, payroll liabilities, judgment payable, deferred salaries, interest payable and loans payable. At December 31, 2007 we had current liabilities of $987,973.

We do not believe that our current cash resources will be able to maintain our current operations for an extended period of time. We will be required to raise additional funds or arrange for additional financing over the next 12 months to adhere to our development schedule. No assurance can be given, however, that we will have access to additional cash in the future, or that funds will be available on acceptable terms to satisfy our working capital requirements. If we are not able to arrange for additional funding or if our officers, directors and shareholders stop advancing funds to us, we may be forced to make other arrangements for financing such as loans or entering into strategic alliances. We have not identified any alternative sources of financing.

Results of Operations

We realized revenue from operations in 2008 of $5,035 received from the Asher #1 oil well. During the year ended December 31, 2008 the loss from operations is $365,473 (2007 – $484,269). This decrease in loss was due primarily to a reduction of stock based compensation and interest expense in 2008. From February 11, 2005 (inception of oil and gas exploration operations) to December 31, 2008, Friendly Energy Exploration has incurred cumulative net losses of $2,365,599.

The cash and equivalents constitute our present internal sources of liquidity.
1-Oct-2009

Because we are not generating any significant revenues, our only external source of liquidity is the sale of our capital stock and any advances from officers, directors or shareholders.

Our Plan of Operation for the Next Twelve Months

We anticipate that we will need to raise additional capital within the next 12 months in order to continue as a going concern. The Company is in the process of raising capital to fund the development of future wells. To the extent that additional capital is raised through the sale of equity or equity- related securities, the issuance of such securities could result in dilution of stockholders. There can be no assurance that additional funding will be available on favorable terms, if at all. If adequate funds are not available within the next 12 months, we may be required to curtail our operations significantly or to obtain funds through entering into arrangements with collaborative partners or others that may require us to relinquish rights to certain of our assets that we would not otherwise relinquish.

 

This lease, known as the Byler Lease, has 19 existing wells that were shut in and capped in the last three years and were producing between 5 and 15 barrels of oil per day per well when shut in.

The lease also provides for an additional 11 well sites of infield drilling, according to a 20 acre spacing allowance. The company plans to establish a rework and reopen plan for the existing 19 wells, in order to maximize their future production.

“The acquisition of over 600 lease acres of the prolific Barnett Shale Oil structure, provides the company with significant future production from a low risk infield drilling prospect,” states Company President Douglas Tallant. “Upon completion of the rework of the 10 Panther Creek wells and the reworking and bringing on line of these 19 Byler lease wells, production is anticipated to exceed 300 barrels of Oil per day.”

The Panther Creek Prospect rework program has been brought on line for initial testing the fourth of ten wells. Flow testing an individual is inconclusive at this time, however it is expected that upon the initial sale of the approximately 550 barrels of Oil currently held in the on-site tank battery, accurate flow figures per well can be determined.

The company continues to actively search for additional, existing, production to acquire in addition to any proven, low risk, infield drilling opportunities for both oil and gas.

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.
Contact:

For Additional Information:
www.FriendlyEnergyCo.com
www.BearPawMarketing.com
Sean Tallant
1 970 434 4297
Email Contact

 

Once the bond has been placed and the application approved, Friendly Energy will become a licensed operator for its wells in the State of Texas.

“This application, upon approval, will provide the company the ability to more closely control all aspects of the oil field production and development of our current and future prospects,” states Company President, Douglas Tallant. “This is just one of the many steps the company is taking to achieve its business goals of becoming an efficient, low cost producer of proven oil and gas reserves.”

The initial well for the Panther Creek Prospect rework program has been identified and it is anticipated work will begin in the next 10 days.

The company continues to actively search for additional, existing, production to acquire in addition to any proven, low risk, infield drilling opportunities for both oil and gas.

Currently the company has identified several potential prospects, and is performing the required due diligence to verify the economic viability of those acquisitions. Further information will be provided as those processes are concluded.

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.
Contact:

For Additional Information:
www.FriendlyEnergyCo.com
www.BearPawMarketing.com
Sean Tallant
1 970 434 4297

 

It is anticipated that the reworking of these wells could enhance daily production to the 50 barrel per day per well level, with the addition of natural gas production yet to be determined.

“This has the potential for providing the company with positive cash flow on a consistent basis over the near term. These wells provide the potential for the development of an oil producing field from a proven geological formation,” states Company President, Douglas Tallant. “These proven producing wells provide the company with the opportunity to gain a significant reserve base of proven developed reserves, if successful, that will enable the company to leverage its further development to the next level as an oil production and exploration company.”

The company has a 100% Working Interest and a 80% Net Revenue Interest of the Twelve well Panther Creek Prospect.

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.
Contact:

For Additional Information:
BearPaw Marketing
Sean Tallant
1 970 434 4297

 

The company has acquired an acreage containing 12 existing wells on three contiguous leases located in the South Western Region of the Prolific Barnett Shale Region. These existing wells are producing 5-7 barrels of oil per day currently with a historical production of approximately 82,000 barrels.

The Panther Creek Prospect will be a water flood/pressure maintenance project with the potential to produce up to an estimated 165,000 barrels of Oil.

“I am very pleased with the potential of this acquisition,” states Company President Douglas Tallant. “The company has purchased this lease outright and is now in the process of fracing and reworking the existing wells to increase production. Once the rework phase has been completed, the company will begin the water flood/pressure maintenance stage. The company continues to search for additional existing production to acquire in addition to any infield drilling opportunities for both oil and gas.”

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.

For Additional Information:
www.FriendlyEnergyCo.com

Contact:

BearPaw Marketing
www.BearPawMarketing.com
Sean Tallant
1 970 434 4297

 

The company will be targeting the Wolfcamp Sand structure, which is determined to be located near the 5500-foot depth zone. Based upon production figures of wells in the same field, producing from the targeted Wolfcamp Sand structure, it is anticipated that initial production from these shallow wells will be approximately 200 mcf of gas per day.

The company has negotiated a 100% Working Interest with a 65% Net Revenue Interest. The cost to drill each well is determined by a turnkey contract with a cost of $720,000.00 per well.

“Friendly Energy is pleased to acquire these ten drill sites in a proven gas field,” states company president Douglas Tallant. “The company expects to initiate the drilling of the first well in the next thirty days.”

“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: www.FriendlyEnergyCo.com

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:
BearPaw Marketing
http://www.BearPawMarketing.com
Sean Tallant
1 970 434 4297

 

“The well is currently producing approximately 15 barrels of oil and 50 mcf of gas per day at this time. Friendly Energy and its partners Southwest Talpa L.L.C are analyzing the current production to determine how to enhance the per day oil production through the application of common industry methods such as fracing or stimulating the structure, or introducing a larger down hole pump,” states Company President Douglas Tallant. “This well currently will produce approximately $60,000.00 per month of gross oil sales at the current market prices. It is the company’s target to enhance daily production to a minimum of 50 barrels of oil per day or in excess of $200,000.00 of revenue per month based upon $135.00 per barrel oil prices. 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.

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:

BearPaw Marketing
http://www.BearPawMarketing.com
Sean Tallant
1 970 434 4297