LITIGATION	12 Months Ended
Dec. 31, 2012
LITIGATION
LITIGATION	12. LITIGATION In 2005, an employee received a defaulted judgment against the Company concerning the case Bowers v. Friendly Energy Corporation, San Diego Superior Court Case No. 775084. The default judgment in the principle sum of $434,211.50 was reduced to a principal amount of $110,000, with interest from October 13, 2000. With accrued interest and less principal paid of $140,000, the balance at December 31, 2012 and 2011 is $156,684 and $141,832, as reported in the liability section of the balance sheet. In 2012, an investor filed suit against the Company concerning an investment made in the Asher #1 well in Oklahoma, which produced little income, and an investment in the Peach Tree well in Oklahoma, which was a dry hole. The amount of the investments was $244,500. The investor alleges that the monies were a loan and not an investment and alleges that $244,000 is still due and payable. We hope to resolve this matter out of court. To be conservative for the purposes of the Company’s financials, we have recorded a loan liability in the amount of $244,000.

LITIGATION

12 Months Ended

Dec. 31, 2012

12.

LITIGATION

In 2005, an employee received a defaulted judgment against the Company concerning the case Bowers v. Friendly Energy Corporation, San Diego Superior Court Case No. 775084. The default judgment in the principle sum of $434,211.50 was reduced to a principal amount of $110,000, with interest from October 13, 2000. With accrued interest and less principal paid of $140,000, the balance at December 31, 2012 and 2011 is $156,684 and $141,832, as reported in the liability section of the balance sheet.

In 2012, an investor filed suit against the Company concerning an investment made in the Asher #1 well in Oklahoma, which produced little income, and an investment in the Peach Tree well in Oklahoma, which was a dry hole. The amount of the investments was $244,500. The investor alleges that the monies were a loan and not an investment and alleges that $244,000 is still due and payable. We hope to resolve this matter out of court. To be conservative for the purposes of the Company’s financials, we have recorded a loan liability in the amount of $244,000.

FRIENDLY ENERGY EXPLORATION 10-K/A