Friendly Energy is a company that is poised to take advantage of the current market pricing of oil and gas that has created new opportunities to bring online proven undeveloped reserves, with very little downside risk to the company. The company’s primary operating philosophy is to develop low risk, high yield, under developed oil and gas reserves utilizing the most current technology available.
This approach will enable the company to capitalize upon previously discovered and proven producing properties with known reserves that have not been completely exploited due to economic conditions.
Friendly Energy has Identified four viable prospects for development.
The first such opportunity that Friendly Energy has identified for further development is the Peach Creek West prospect. Utilizing today’s technologies, there are two separate and distinct economic recovery zones for Friendly Energy to explore and exploit. The first being the recovery of the Hunton , Viola, 1st and 2nd Wilcox zone, and the second being a deeper well to the Pennsylvanian sands geological zones.
What does this mean to the Company?
Based upon the undeveloped reserves figure of 500,000 recoverable barrels of oil per prospect, the following is a breakdown of the valuation of the first prospect Peach Creek West.
Assuming that the planned development program of four target wells per prospect is implemented and successful, then each prospect should produce approximately 500,000 barrels of oil.
Using an un-discounted figure of today’s oil price of approximately $60.00 per barrel, gross revenue per prospect lifetime of $30,000,000.00 would be established. The cost of drilling and completing each well is approximately $650,000.00 giving an un-discounted gross revenue projection for each prospect of $27,400,000.00
Assuming that all targets produce equally, this will provide for un-discounted gross revenue from the four prospects potential reserves of $ 109,600,000.00. Friendly Energy has a 100% working interest and an 87.5% net revenue interest in these wells. The company’s revenue interest would be $95,900,000.00
Utilizing current market and industry valuation trends, this will provide for the following valuation as reflected on the company’s stock price.
Friendly Energy currently has on a Fully Diluted basis: 40,000,000 shares issued and outstanding.
$95,900,000/ 40,000,000 = $2.3975 per share gross revenue potential. The current industry standard has companies trading at a multiple of the per share revenue figures.
The following valuations are derived from these multiples:
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5 times per share gross revenue:
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$11.9875 per share
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10 times per share gross revenue:
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$23.9750 per share
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| 15 times per share gross revenue:
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$35.9625 per share
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Additionally the company will have the ability to book bankable reserves as producing assets.
Using the current pricing of $60.00 per barrel of oil, the potential value of these fields could exceed $95,900,000.00 of oil. This is the first of four major exploration prospects that the company will be developing near term.
Blue Sky Potential
Using the current pricing of $60.00 per barrel of oil, the potential value of these fields could exceed $95,900,000.00 of oil. This is the first of four major exploration prospects that the company will be developing near term.
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THE COMPANY HAS TO ITS INTEREST OF OVER 2,000,000 BBLS OF POTENTIAL PROVEN RESERVES
![]() THE COMPANY HAS THE IMMEDIATE POTENTIAL OF DISCOVERING OVER
$27,400,000 IN RESERVES TO ITS INTEREST UPON DRILLING THE PEACH CREEK WEST PROSPECT. OR ABOUT $2.40 A SHARE
![]() THE PROSPECT IS AN INFILL DRILLING PLAY AND AS SUCH HAS A HIGHER SUCCESS POTENTIAL DUE TO OUTSTANDING GEOLOGIC CONTROL AND UNDERSTANDING OF THE SHALLOW FORMATIONS BELOW BECAUSE OF THE PREVIOUS WELLS DRILLED IN THE AREA.
![]() TO DATE SEVERAL MAJOR DISCOVERIES HAVE BEEN MADE AROUND THE PEACH CREEK WEST/FRIENDLY ENERGY LEASE.
![]() FRIENDLY ENERGYS STRATEGY IS TO DRILL ONLY LOW RISK, HIGH POTENTIAL WELLS, WITH POTENTIAL PROVEN RESERVES ON THE LEASES IN ORDER THAT THE COMPANY WILL RECOVER ITS INVESTMENT FROM SHALLOW ZONES, IF THE DEEP ZONES PROVE UNPRODUCTIVE.
![]() AS A RESULT, THIS STOCK COULD EASILY TRADE AT 3 TO 4 DOLLARS PER SHARE.
![]() MANAGEMENT IS ACTIVELY SEEKING NEW VENTURES AND SIMILAR PROSPECTS AND PARTNERS FOR FUTURE GROWTH.
![]() SHOULD CRUDE OIL PRICES 'JUMP' TO $80.00 PER BARREL AS IS PREDICTED BY WALL STREET, THE POTENTIAL VALUE OF EACH SHARE IS IMPROVED BY 25% OF THE INCREASE BECAUSE ALL COSTS OF RECOVERY HAVE BEEN EXPENSED IN PREVIOUS ESTIMATES. IN OTHER WORDS PRICE INCREASES ARE PURE PROFIT.
![]() FINALLY, THERE IS NOTHING MORE EXCITING IN BUSINESS THAN BEING PART OF AN OIL AND GAS DISCOVERY INSTANT VALUE IS CREATED, THE MARKET ANDTHE DEMAND IS ALREADY THERE... THERE IS NO MARKET RISK A PIPELINE AND PURCHASER ARE WITHIN THE IMMEDIATE AREA
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