OIL AND GAS PROPERTIES

12 Months Ended

Dec. 31, 2012

OIL & GAS PROPERTIES


				December 31, 2012 $		December 31, 2011 $
Oil & Gas Properties - Unproved
	Byler Lease		45,143		45,143
	Hutchins Lease		2,400		2,400
	South Thrifty Lease, net of depletion		55,894		56,556
	Tyra Lease		10,000		0
	Panther Lease, net of depletion		0		8,596
	Mud Creek Lease		20,000		20,000
	Red Oak Project		242,000		242,000
	Talpa Project		50,000		50,000
	West Peach Project		36,970		36,970
			462,406		461,665
	Impairment		(348,970)		(328,970)
		Total oil & gas properties		113,436		132,695

Byler Lease – In 2009, the Company purchased, through its wholly-owned subsidiary, a 100% interest in oil and gas properties in central Texas for $33,650. In 2010, there were additional lease costs of $333, and in 2011 there were additional lease costs of $11,160. The property totals 372 acres and consists of 17 wells. The Company remits a 22% royalty payment. As at December 31, 2012, there was no production on the property.

Hutchins Lease - In 2009, the Company purchased, through its wholly-owned subsidiary, a 100% interest in shallow oil and gas properties in central Texas for $2,400. The property totals 194 acres. Upon production, the Company will remit a 15.125% royalty payment. As at December 31, 2012, there was no production on the property.

South Thrifty Lease - In the first quarter of 2010, the Company purchased, through its wholly-owned subsidiary, a 50% interest in oil and gas properties in central Texas for $67,500. After the depletion allowance, the balance is $56,556. The property totals 1,000 acres. The Company remits approximately a 22% royalty payment (the royalty payment varies for the wells). As at December 31, 2012, there was production on the property from several gas wells.

Tyra Lease - In the last quarter of 2012, the Company acquired, through its wholly-owned subsidiary, a 51% interest in oil and gas properties in north central Texas for $10,000. The property has one well on 20 acres. The Company remits approximately a 20% royalty payment. As at December 31, 2012, there was production on the property.

Panther Creek Lease - In 2009, the Company purchased, through its wholly-owned subsidiary, a 100% interest in oil and gas properties in central Texas for $15,000. After the depletion allowance, the balance is $8,596. The property totals 155 acres. The Company sold its interest in the lease for $30,000 in December 2012.

Mud Creek Lease - In 2009, the Company purchased, through its wholly-owned subsidiary, a 100% interest in oil and gas properties in central Texas for $10,000. In 2011 there were additional lease costs of $11,160. The property totals 355 acres. In 2012, management elected not to continue with further exploration of the property and impaired all capitalized costs.

Red Oak Project - Friendly Energy Exploration, through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES), participated in the drilling of a 3,200 foot deep oil and gas well in southwest Iowa. FES owns a 42.5% working interest in the well. In 2009, management elected not to continue with further exploration of the property and impaired all capitalized costs.

Talpa Project - Friendly Energy Exploration purchased, through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES), a 25% working interest in an 1,100 acre oil and gas lease in Texas. In 2009, management elected not to continue with further exploration of the property and impaired all capitalized costs.

West Peach Creek Project - Friendly Energy Exploration had planned to drill a 5,400 foot deep well in central Oklahoma through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES). If the geophysicist and operator each purchase a 10% working interest, as expected, then FES will own an 80% working interest in the well. The location is on the West Peach Creek Prospect, a development/exploratory prospect, located on the western edge of the giant St. Louis Oil Field. In 2009, management elected not to continue with further exploration of the property and impaired all capitalized costs.

FRIENDLY ENERGY EXPLORATION 10-K/A