Phase 1 of the drilling program will include the drilling of four new wells and re-working one existing well.
Phase two is expected to include the drilling of the remaining 6 new wells. Phase 2 is expected to start in the second quarter of 2011.
The company has agreed to terms with a group of private investors who have agreed to fund $1,250,000 for the project.
The terms of the agreement are such that the investors will own 49% of the production rights to the wells while Friendly Energy will own the remaining 51%.
Drilling is expected to begin on or before 7 January 2011.
Friendly Energy CEO Doug Tallant said that on each of the leases, we plan to drill five wells and re-work at least one existing well to the Marble Falls formation at about 2,300ft.
