CARSON CITY, Nev., Sept. 22, 2005 (PRIMEZONE) -- Friendly Energy Corporation. (Pink Sheets:FDEG) announces today that it has finalized a lease acquisition, the Peach Creek West prospect in Pottawatomie County, Oklahoma.
The Hunton limestone and Wilcox sandstone are the principal oil-bearing reservoirs. Peach Creek West Prospect is comparable in size to surrounding oil fields such as East Stella, Shawnee Lake, South Pink, and NE Tribbey. These nearby oil fields have produced oil from the Bois d'Arc (Hunton), Viola limestone, Viola Dolomite, Red Fork sand, and Wilcox sand. Of particular interest, is the NE Tribbey oil field where 1.6 million barrels of oil have been produced from the Wilcox sand. Additionally, the South Pink oil field produced 800,000 barrels from the Hunton limestone from three wells.
The potential reserves in the Peach Creek Prospect are expected to be 200,000 BO from the Viola and Wilcox, and 100,000 BO from the Bois d'Arc Hunton. Combined reserves are conservatively estimated to be 300,000 BO per well. The prospect structure is large enough to accommodate four (4) wells drilled on 40-acre spacing units.
"Four wells with in-ground reserve potential of 300,000 BOPW for a total potential of 1,200,000 barrels makes this a very exciting prospect," stated company president Mr. Douglas Tallant. "The anticipated flow rates, as indicated by internal geological data, from each successful well of 300 BOPD. The company's interests in the prospect are subject to 100% Working Interest with an NRI of 87.5%. The potential monthly cash flow that each well represents from this prospect utilizing a conservative $50.00 per barrel oil price could exceed $400,000.00 per well per month net to the company for a total monthly potential cash flow of $1,600,000.00 per month. Potential in-ground reserves could exceed $60,000,000.00 from this one prospect."
"With the potential cash flow that one successful well represents to the company, we look forward to starting the development of the first well site immediately," stated company president Mr. Douglas Tallant. "The company is very pleased to be working with Mr. Ray Suhm on this the first of many prospects to be developed in the near future."
The company is expecting to initialized the shooting of two confirmation seismic lines on the Peach Creek West prospect prior to September 30, 2005 to determine the first of four drilling sites.
Friendly Energy Corporation is a development company involved in exploration of low risk oil and gas properties in the United States.
Mr. Suhm has nearly 40 years of experience as a geologist and geophysicist. Further information can be reviewed at www.raysuhm.com
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.