CARSON CITY, Nev., May 24, 2006 (PRIMEZONE) -- Friendly Energy Corporation (Pink Sheets:FDEG) announces today an update received from the company's joint venture partner, D-mil Production Inc of Dallas, Texas, that the new drill rig that has been constructed by Jerry Scott Drilling LLC, which has basic information available on its corporate website www.jerryscottdrilling.com, is being field tested and is in the final stages of development.
It is anticipated that Jerry Scott Drilling will be completing a second field test hole to prove out the reliability of the drill rig prior to moving to the joint venture Asher Prospect. It is anticipated that the drill rig will be made available for drilling the Asher Prospect near the beginning of June as indicated by our joint venture partner and Jerry Scott Drilling.
The development of both the Asher Prospect and the Peach Creek West Prospect simultaneously has been revised due to the lack of drill rig availability and significant wait times. The company has had a rig reservation through its operator D-mil Production Inc of Texas since the end of October 2005 with Ackerman Drilling which has delayed the company's use of a drill rig since the original indicated date of the first week of March, 2006.
The company has committed to a 50% working interest of the Asher Prospect located on the western edge of the giant St. Louis oil field in Pottawatomie County, Central Oklahoma. This commitment on behalf of the company is up to $375,000.00 dry hole costs.
The St. Louis field has produced over 300 million barrels of oil and 26 billion cubic feet of gas from reservoirs of the Earlsboro sand (Pennsylvanian), Hunton and Viola. Estimated reserves for the Asher Prospect are indicated to be 350,000 barrels of oil.
"We are fortunate to have indications of access to a drill rig at this time," states company President Douglas Tallant. "The company has been frustrated by the delays that seem to be prevalent to the industry during this very busy time of exploration."
The company plans to begin drilling as soon as a rig is made available. A start date will be determined as soon as the field tests are completed and the drill rig has moved to the prospect location. Due to the high demand of drill rigs in the oil fields today, several delays in the start date for drilling have occurred. The development of the Peach Creek West Prospect remains the company's priority.
The company also expects that the company audits will be completed in the near future. The company's independent auditors, De Joya Griffith and Company of Nevada, have indicated to the Company that they will complete the audits imminently, and as such the company is anticipating filing its financial reports as soon as the independent auditors provide the company the ability to do so.
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 Inc. ("FDEG") reasonably expects to occur in the future. Expectations for the future performance of the business of FDEG are dependent upon a number of factors, and there can be no assurance that FDEG will achieve the results as contemplated herein and there can be no assurance that FDEG 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. FDEG disclaims any obligation to update any forward-looking statement made herein.