CARSON CITY, Nev., June 13, 2006 (PRIMEZONE) -- Friendly Energy Corp. (Pink Sheets:FDEG) announces today that the company's joint venture partner, D-Mil Production Inc. of Dallas, Texas, has applied for and received a drilling permit from the Oklahoma State Corporation Commission.
The permit is effective as of the 15th day of June, and is valid for 6 months. D-Mil Production indicates that construction of an access road and site preparation for the Drill Rig Platform is to begin as soon as the permit is effective. The road construction and site preparation is expected to take up to fourteen days to complete. The drilling rig contracted from Jerry Scott Drilling LLC. has successfully completed its field tests, and is available upon the completion of the site preparation work, barring any unforeseen delays.
"The company is very excited to report that this important stage of the drilling process has begun," states company President Douglas Tallant. "This is the first of many development wells that the company has scheduled to begin drilling this year. 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."
The company has committed to a 50% working interest with a 37% net revenue interest to the company, of the Asher No. 1 Prospect located on the western edge of the giant St. Louis oil field in Pottawatomie County, Central Oklahoma.
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.
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.