CARSON CITY, Nev., June 8, 2005 (PRIMEZONE) -- Friendly Energy Corporation's (Pink Sheets:FDEG) board of directors previously announced that the company has entered into and option agreement to participate with American Stellar Energy, Inc. (Pink Sheets:AMRS), and Koko Petroleum, Inc. (Pink Sheets:KKPT) in the exploration and production of the Corsicana Field.
The Corsicana Field is a low risk, low cost opportunity to develop known oil bearing zones under an old shallow oil field. The general area is oil rich, having produced over 250 million barrels of oil to date from shallow oil sands within a 6-mile radius of the prospect acreage.
Friendly Energy expects a higher than 70% success ratio in the drilling and completion of the 30 well program due to the infield nature of the potential drill sites. The cost to drill and complete each shallow well, subject to AFE will be approximately seventy five thousand dollars each ($75,000.00). With success ratios along these lines and using current production rates from existing wells, these new wells will produce cumulative cash flow in excess of $160,000.00 per month to the company until payout.
"We expect that we will be able to increase flow rates with different frac technology to enhance the companies return on investment," quotes company President Douglas Tallant "The cash flow projections used are very conservative given the flow rates on production in the area."
Friendly Energy Corporation is a development company involved in exploration of low risk oil and gas properties in the United States.
This news release contains information that is "forward-looking" in that it describes events and conditions, which Friendly Energy Corporation ("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.