**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

----

**FORM      10-Q**

| (Mark                One) |   |                                                                                                                                                                                                                                                               |
|---------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| þ                    |   | Quarterly                report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934                                                                                                                               |
|                      |   | **For                the quarterly period ended: June 30, 2008**                                                                                                                                                                                                   |
| **or**                    |
| **o**                     |   | Transition                report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934                                                                                                                              |
|                      |   | For                the transition period                from                                              to |

**Commission        file number 0-31423**

**FRIENDLY      ENERGY EXPLORATION**

|                                                          |   |                                                |
|---------------------------------------------------------------|--------|-----------------------------------------------------|
| **Nevada**                                                    |   | **91-1832462**                                      |
| (State                of incorporation)                       |   | (I.R.S.                employer identification no.) |
|                                                          |
| **502                North Division Street, Carson City, NV** |   | **89703**                                           |
| (Address                of principal executive offices)       |   | (Zip                code)                           |

**702-953-0411**

**x**

| Large                accelerated filer |  ̈ |   | Accelerated                filer         |  ̈ |
|----------------------------------------|--------|--------|------------------------------------------|--------|
| Non-accelerated                filer   |  ̈ |   | Smaller                Reporting Company | **x**  |

**x**

**x**

----

**PART      I - FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS**

----

|                                                                                                                                                                               |   | June 30, 2008 |       | December 31, 2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|-----------------------------|--------|
|                                                                                                                                                                               |   |                    |       | (Restated)                  |   |
|                                                                                                                                                                               |   |                    |       |                        |   |
| ASSETS                                                                                                                                                                             |   |                    |       |                        |   |
|                                                                                                                                                                               |   |                    |       |                        |   |
| Current                assets                                                                                                                                                      |   |                    |       |                        |   |
| Cash                and cash equivalents                                                                                                                                           |   | $                       | 315        |                        | $      | 268 |   |
| Advances                                                                                                                                                                           |   |                    | 264        |                        |   | 360 |   |
| Total                current assets                                                                                                                                                |   |                    | 579        |                        |   | 628 |   |
|                                                                                                                                                                               |   |                    |       |                        |   |   |   |
| Other                Assets                                                                                                                                                        |   |                    |       |                        |   |   |   |
| Property                and equipment, net                                                                                                                                         |   |                    | 2,055      |                        |   | 2,466 |   |
| Investment                                                                                                                                                                         |   |                    | 1,000      |                        |   | 1,000 |   |
| Notes                                                                                                                                                                              |   |                    | 319,000    |                        |   | 319,000 |   |
| Asher                #1 Oil Well                                                                                                                                                   |   |                    | -          |                        |   | 103,077 |   |
| Asher                #2 Project                                                                                                                                                    |   |                    | -          |                        |   | 5,008 |   |
| Red                Oak Project                                                                                                                                                     |   |                    | 242,000    |                        |   | - |   |
| West                Peach Project                                                                                                                                                  |   |                    | 36,970     |                        |   | 52,005 |   |
| Total                Other Assets                                                                                                                                                  |   |                    | 601,025    |                        |   | 482,556 |   |
|                                                                                                                                                                               |   |                    |       |                        |   |   |   |
| Total                Assets                                                                                                                                                        |   | $                       | 601,604    |                        | $      | 483,184 |   |
|                                                                                                                                                                               |   |                    |       |                        |   |   |   |
| IABILITIES                AND STOCKHOLDERS' DEFICIT                                                                                                                                |   |                    |       |                        |   |   |   |
|                                                                                                                                                                               |   |                    |       |                        |   |   |   |
| LIABILITIES                                                                                                                                                                        |   |                    |       |                        |   |   |   |
| Current                liabilities                                                                                                                                                 |   |                    |       |                        |   |   |   |
| Accounts                Payable                                                                                                                                                    |   | $                       | 89,990     |                        | $      | 158,419 |   |
| Payroll                Tax Liabilities                                                                                                                                             |   |                    | 92,265     |                        |   | 83,085 |   |
| Judgement                payable                                                                                                                                                   |   |                    | 206,084    |                        |   | 196,074 |   |
| Deferred                Salaries                                                                                                                                                   |   |                    | 468,000    |                        |   | 348,000 |   |
| Interest                Payable                                                                                                                                                    |   |                    | 136,292    |                        |   | 143,710 |   |
| Loan                Payable                                                                                                                                                        |   |                    | 304,573    |                        |   | 51,569 |   |
| Loans                Payable-Related Parties                                                                                                                                       |   |                    | 18,137     |                        |   | 7,086 |   |
| Total                current liabilities                                                                                                                                           |   |                    | 1,315,341  |                        |   | 987,943 |   |
|                                                                                                                                                                               |   |                    |       |                        |   |   |   |
| Total                liabilities                                                                                                                                                   |   |                    | 1,315,341  |                        |   | 987,943 |   |
|                                                                                                                                                                               |   |                    |       |                        |   |   |   |
| STOCKHOLDERS'                DEFICIT                                                                                                                                               |   |                    |       |                        |   |   |   |
| Common                stock, $0.001 par value; 100,000,000 shares authorized, 21,568,790                and                2,782,271 shares, respectively, issued and outstanding  |   |                    | 21,569     |                        |   | 2,782 |   |
| Preferred                Stock, $0.001 par value, 10,000,000 shares authorized, 7,667,302                and                9,545,856 shares, respectively, issued and outstanding |   |                    | 7,667      |                        |   | 9,546 |   |
| Additional                paid-in capital                                                                                                                                          |   |                    | 3,667,693  |                        |   | 3,684,601 |   |
| Accumulated                deficit in the development stage                                                                                                                        |   |                    | (4,411,709 | )                           |   | (4,201,688 | ) |
| Total                stockholders' deficit                                                                                                                                         |   |                    | (714,780   | )                           |   | (504,759 | ) |
|                                                                                                                                                                               |   |                    |            |                        |   |  |   |
| Total                liabilities and stockholders' deficit                                                                                                                         |   | $                       | 600,561    |                        | $      | 483,184 |   |

----

|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      | From                        Inception    |   |
|---------------------------------------------------------------------|--------|-------------------------------------------|-----------|-------------------------------------------|--------|-----------------------------------------|--------|-----------------------------------------|-----------|------------------------------------------|--------|
|                                                                |   | For                        the            |      | For                        the            |   | For                        the          |   | For                        the          |      | (January                        7, 1993) |   |
|                                                                |   | Three                        Months Ended |      | Three                        Months Ended |   | Six                        Months Ended |   | Six                        Months Ended |      | through                                  |   |
|                                                                |   | June                        30, 2008      |      | June                        30, 2007      |   | June                        30, 2008    |   | June                        30, 2007    |      | June                        30, 2008     |   |
|                                                                |   |                                      |      | (Restated)                                |   | (Restated)                              |   | (Restated)                              |      | (Restated)                               |   |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |
| Revenue                                                             |   | $                                         | -         |                                      | $      | 3,110                                   |   | $                                       | 5,035     |                                     | $      | 3,110 |   | $ | 16,053 |   |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
| Operating                        expenses                           |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
| Amortization                        Expense                         |   |                                      | -         |                                      |   | -                                       |   |                                    | -         |                                     |   | - |   |   | 30,000 |   |
| Depreciation                                                        |   |                                      | 206       |                                      |   | 294                                     |   |                                    | 411       |                                     |   | 593 |   |   | 43,774 |   |
| Dry                        Hole Cost                                |   |                                      | -         |                                      |   | 646                                     |   |                                    | -         |                                     |   | 1,348 |   |   | 88,157 |   |
| Intangible                        Drilling Costs                    |   |                                      | -         |                                      |   | -                                       |   |                                    | -         |                                     |   | 17,953 |   |   | 333,206 |   |
| Legal                        Fees                                   |   |                                      | 50        |                                      |   | 5,340                                   |   |                                    | 850       |                                     |   | 5,907 |   |   | 76,585 |   |
| Officer                        Wages                                |   |                                      | 60,000    |                                      |   | 60,000                                  |   |                                    | 120,000   |                                     |   | 121,000 |   |   | 867,000 |   |
| Oil                        Well Operations Cost                     |   |                                      | -         |                                      |   | 1,757                                   |   |                                    | 3,157     |                                     |   | 3,078 |   |   | 9,740 |   |
| Payroll                        Expenses                             |   |                                      | 4,590     |                                      |   | 3,901                                   |   |                                    | 9,180     |                                     |   | 7,880 |   |   | 268,225 |   |
| Professional                        Fees                            |   |                                      | 17,708    |                                      |   | 1,828                                   |   |                                    | 19,018    |                                     |   | 2,164 |   |   | 588,819 |   |
| Rent                                                                |   |                                      | -         |                                      |   | -                                       |   |                                    | -         |                                     |   | - |   |   | 237,406 |   |
| Stock                        Based Compensation                     |   |                                      | -         |                                      |   | -                                       |   |                                    | -         |                                     |   | 46,742 |   |   | 553,167 |   |
| Telephone                                                           |   |                                      | 141       |                                      |   | 1,068                                   |   |                                    | 283       |                                     |   | 3,642 |   |   | 46,288 |   |
| Travel                        & Entertainment                   |   |                                      | 222       |                                      |   | 1,849                                   |   |                                    | 791       |                                     |   | 3,004 |   |   | 141,628 |   |
| General                        and administrative                   |   |                                      | 30,046    |                                      |   | 1,310                                   |   |                                    | 30,359    |                                     |   | 4,833 |   |   | 207,563 |   |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
|  Total                        operating expenses               |   |                                      | 112,963   |                                      |   | 77,993                                  |   |                                    | 184,049   |                                     |   | 218,144 |   |   | 3,491,558 |   |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
|  Loss                        from operations                   |   |                                      | (112,963  | )                                         |   | (74,883                                 | )      |                                    | (179,014  | )                                        |   | (215,034 | ) |   | (3,475,505 | ) |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
| Other                        income (expenses):                     |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
| Other                        income                                 |   |                                      | -         |                                      |   | -                                       |   |                                    | -         |                                     |   | - |   |   | 452 |   |
| Forgiveness                        of Debt                          |   |                                      | -         |                                      |   | -                                       |   |                                    | -         |                                     |   | - |   |   | (122,765 | ) |
| Impairment                        Loss on Asset                     |   |                                      | -         |                                      |   | -                                       |   |                                    | -         |                                     |   | - |   |   | (442,800 | ) |
| Interest                        Expense                             |   |                                      | (13,472   | )                                         |   | (20,871                                 | )      |                                    | (31,007   | )                                        |   | (49,592 | ) |   | (261,091 | ) |
| Lawsuit                        Judgement                            |   |                                      | -         |                                      |   | -                                       |   |                                    | -         |                                     |   | - |   |   | (110,000 | ) |
|  Total                        other income (expenses)          |   |                                      | (13,472   | )                                         |   | (20,871                                 | )      |                                    | (31,007   | )                                        |   | (49,592 | ) |   | (936,204 | ) |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
|  Loss                        before provision for income taxes |   |                                      | (126,435  | )                                         |   | (95,754                                 | )      |                                    | (210,021  | )                                        |   | (264,626 | ) |   | (4,411,709 | ) |
| Provision                        for income taxes                   |   |                                      | -         |                                      |   | -                                       |   |                                    | -         |                                     |   | - |   |   | - |   |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
|  Net                        loss                               |   | $                                         | (126,435  | )                                         | $      | (95,754                                 | )      | $                                       | (210,021  | )                                        | $      | (264,626 | ) | $ | (4,411,709 | ) |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
| Basic                        and diluted loss per common share      |   | $                                         | (0.01     | )                                         | $      | (0.05                                   | )      | $                                       | (0.02     | )                                        | $      | (0.14 | ) | $ | (4.36 | ) |
|                                                                |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
| Basic                        and diluted weighted average           |   |                                      |      |                                      |   |                                    |   |                                    |      |                                     |   |   |   |   |   |   |
| common                        shares outstanding                    |   |                                      | 8,769,442 |                                      |   | 1,890,511                               |   |                                    | 8,769,442 |                                     |   | 1,890,511 |   |   | 1,011,759 |   |

----

|                                                                                                                  |   | Common Stock       |    | Preferred Stock  |   | AdditionalPaid-in  |   | Accumulated  |     | TotalStockholders'  |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|----------------------------|--------|-------------------------|--------|-------------------|----------|--------------------------|--------|
|                                                                                                                  |   | Shares (Restated)  |    | Amount                |   | Shares             |   | Amount       |     | Capital                  |   | Deficit |   | Deficit |   |
| Balance                    at January 7, 1993 (Date of inception)                                                     |   |                         | 0       |                       | $      | 0                       |   |              | 0        |                     | $      | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    shares issued to officers & directors for cash, $0.016 per                    share     |   |                         | 2,550   |                       |   | 3                       |   |              | 0        |                     |   | 0 |   |   | 997 |   |   | 0 |   |   | 1,000 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                                                                           |   |                         | 0       |                       |   | 0                       |   |              | 0        |                     |   | 0 |   |   | 0 |   |   | (1,000 | ) |   | (1,000 | ) |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 1993, 1994, and 1995                                                       |   |                         | 2,550   |                       |   | 3                       |   |              | 0        |                     |   | 0 |   |   | 997 |   |   | (1,000 | ) |   | 0 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    shares cancelled                                                                            |   |                         | (2,550  | )                          |   | (3                      | )      |              | 0        |                     |   | 0 |   |   | 3 |   |   | 0 |   |   | 0 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    shares issued for cash, $0.00 per share                                                     |   |                         | 100,000 |                       |   | 100                     |   |              | 0        |                     |   | 0 |   |   | (90 | ) |   | 0 |   |   | 10 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                    to preferred stock                                                                      |   |                         | (20,000 | )                          |   | (20                     | )      |              | 50,000   |                     |   | 50 |   |   | (30 | ) |   | 0 |   |   | 0 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                                                                           |   |                         | 0       |                       |   | 0                       |   |              | 0        |                     |   | 0 |   |   | 0 |   |   | (10 | ) |   | (10 | ) |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 1996                                                                       |   |                         | 80,000  |                       |   | 80                      |   |              | 50,000   |                     |   | 50 |   |   | 880 |   |   | (1,010 | ) |   | 0 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    shares issued relating to spin-out                                                          |   |                         | 609     |                       |   | 1                       |   |              | 0        |                     |   | 0 |   |   | (1 | ) |   | 0 |   |   | 0 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    shares issued for cash, $0.80 per share                                                     |   |                         | 1,500   |                       |   | 1                       |   |              | 0        |                     |   | 0 |   |   | 29,999 |   |   | 0 |   |   | 30,000 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    shares issued to officers and directors for cash, $0.685 per                    share       |   |                         | 1,750   |                       |   | 2                       |   |              | 0        |                     |   | 0 |   |   | 29,998 |   |   | 0 |   |   | 30,000 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                    shares issued to officers and directors for services, $0.04 per                    share |   |                         | 0       |                       |   | 0                       |   |              | 750,000  |                     |   | 750 |   |   | 29,250 |   |   | 0 |   |   | 30,000 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                                                                           |   |                         | 0       |                       |   | 0                       |   |              | 0        |                     |   | 0 |   |   | 0 |   |   | (63,266 | ) |   | (63,266 | ) |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 1997                                                                       |   |                         | 83,859  |                       |   | 84                      |   |              | 800,000  |                     |   | 800 |   |   | 90,126 |   |   | (64,276 | ) |   | 26,734 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    shares issued for cash, $1.74 per share                                                     |   |                         | 390     |                       |   | 0                       |   |              | 0        |                     |   | 0 |   |   | 17,000 |   |   | 0 |   |   | 17,000 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    shares issued to officers and directors for services,                    $0.004             |   |                         | 105,000 |                       |   | 105                     |   |              | 0        |                     |   | 0 |   |   | 10,395 |   |   |   |   |   | 10,500 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                    of preferred stock                                                                      |   |                         | 320,000 |                       |   | 320                     |   |              | (800,000 | )                        |   | (800 | ) |   | 480 |   |   | 0 |   |   | 0 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                                                                           |   |                         | 0       |                       |   | 0                       |   |              | 0        |                     |   | 0 |   |   | 0 |   |   | (33,234 | ) |   | (33,234 | ) |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 1998                                                                       |   |                         | 509,249 |                       |   | 509                     |   |              | 0        |                     |   | 0 |   |   | 118,001 |   |   | (97,510 | ) |   | 21,000 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cancellation                    of common stock                                                                       |   |                         | (1,850  | )                          |   | (2                      | )      |              | 0        |                     |   | 0 |   |   | 2 |   |   | 0 |   |   | 0 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                    shares issued for debt settlement, $3.69 per share                                       |   |                         | 0       |                       |   | 0                       |   |              | 146,883  |                     |   | 147 |   |   | 541,853 |   |   | 0 |   |   | 542,000 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                    shares issued for services, $3.69 per share                                              |   |                         | 0       |                       |   | 0                       |   |              | 5,000    |                     |   | 5 |   |   | 18,445 |   |   | 0 |   |   | 18,450 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss                                                                                           |   |                         | 0       |                       |   | 0                       |   |              | 0        |                     |   | 0 |   |   | 0 |   |   | (556,309 | ) |   | (556,309 | ) |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 1999                                                                       |   |                         | 507,399 |                       |   | 507                     |   |              | 151,883  |                     |   | 152 |   |   | 678,301 |   |   | (653,819 | ) |   | 25,141 |   |
|                                                                                                                  |   |                         |    |                       |   |                    |   |              |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                    shares issued for debt settlement, $3.69 per share                                       |   |                         | 0       |                       |   | 0                       |   |              | 174,798  |                     |   | 175 |   |   | 644,825 |   |   | 0 |   |   | 645,000 |   |

----

|                                                                                                                                        |   | Common Stock       |      | Preferred Stock  |   | AdditionalPaid-in  |   | Accumulated  |       | TotalStockholders'  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|----------------------------|--------|-------------------------|--------|-------------------|------------|--------------------------|--------|
|                                                                                                                                        |   | Shares (Restated)  |      | Amount                |   | Shares             |   | Amount       |       | Capital                  |   | Deficit |   | Deficit |   |
| Issuance                  of stock related to merger with Friendly Energy Services, Inc.,                  $3.69 per                  share |   |                         | 0         |                       |   | 0                       |   |              | 120,000    |                     |   | 120 |   |   | 442,680 |   |   | 0 |   |   | 442,800 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                  shares issued for services, $3.69 per share                                                                      |   |                         | 0         |                       |   | 0                       |   |              | 37,500     |                     |   | 37 |   |   | 138,338 |   |   | 0 |   |   | 138,375 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                                                                   |   |                         | 0         |                       |   | 0                       |   |              | 0          |                     |   | 0 |   |   | 0 |   |   | (914,511 | ) |   | (914,511 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at December 31, 2000                                                                                               |   |                         | 507,399   |                       |   | 507                     |   |              | 484,181    |                     |   | 484 |   |   | 1,904,144 |   |   | (1,568,330 | ) |   | 336,805 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                                                                   |   |                         | 0         |                       |   | 0                       |   |              | 0          |                     |   | 0 |   |   | 0 |   |   | (584,851 | ) |   | (584,851 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at December 31, 2001                                                                                               |   |                         | 507,399   |                       |   | 507                     |   |              | 484,181    |                     |   | 484 |   |   | 1,904,144 |   |   | (2,153,181 | ) |   | (248,046 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                  shares issued for debt settlement, $3.69 per share                                                               |   |                         | 0         |                       |   | 0                       |   |              | 2,973,080  |                     |   | 2,973 |   |   | 145,681 |   |   | 0 |   |   | 148,654 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                                                                   |   |                         | 0         |                       |   | 0                       |   |              | 0          |                     |   | 0 |   |   | 0 |   |   | (12,371 | ) |   | (12,371 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at December 31, 2002                                                                                               |   |                         | 507,399   |                       |   | 507                     |   |              | 3,457,261  |                     |   | 3,457 |   |   | 2,049,825 |   |   | (2,165,552 | ) |   | (111,763 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                                                                   |   |                         | 0         |                       |   | 0                       |   |              | -          |                     |   | 0 |   |   | 0 |   |   | (24,215 | ) |   | (24,215 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2003                                                                                                 |   |                         | 507,399   |                       |   | 507                     |   |              | 3,457,261  |                     |   | 3,457 |   |   | 2,049,825 |   |   | (2,189,767 | ) |   | (135,978 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                                                                   |   |                         | 0         |                       |   | 0                       |   |              | 0          |                     |   | 0 |   |   | 0 |   |   | (11,795 | ) |   | (11,795 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2004                                                                                                 |   |                         | 507,399   |                       |   | 507                     |   |              | 3,457,261  |                     |   | 3,457 |   |   | 2,049,825 |   |   | (2,201,562 | ) |   | (147,773 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued for cash, $0.025                                                                                      |   |                         | 16,000    |                       |   | 16                      |   |              | 0          |                     |   | 0 |   |   | 9,984 |   |   | 0 |   |   | 10,000 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued for servicees, $0.05 per share                                                                        |   |                         | 10,000    |                       |   | 10                      |   |              | 0          |                     |   | 0 |   |   | 12,490 |   |   | 0 |   |   | 12,500 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued to officers and directors for services, $0.04 per                  share                              |   |                         | 20,000    |                       |   | 20                      |   |              | 0          |                     |   | 0 |   |   | 19,980 |   |   | 0 |   |   | 20,000 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                  shares issued to officers and directors for services, $0.40 per                  share                           |   |                         | 0         |                       |   | 0                       |   |              | 450,000    |                     |   | 450 |   |   | 179,550 |   |   | 0 |   |   | 180,000 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                  of preferred stock                                                                                              |   |                         | 789,680   |                       |   | 790                     |   |              | (1,974,200 | )                        |   | (1,974 | ) |   | 1,185 |   |   | 0 |   |   | 0 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of stock options to two officers                                                                                  |   |                         | 0         |                       |   | 0                       |   |              | 0          |                     |   | 0 |   |   | 24,929 |   |   | 0 |   |   | 24,929 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                                                                   |   |                         | 0         |                       |   | 0                       |   |              | -          |                     |   | 0 |   |   | 0 |   |   | (691,271 | ) |   | (691,271 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2005                                                                                                 |   |                         | 1,343,079 |                       | $      | 1,343                   |   |              | 1,933,061  |                     | $      | 1,933 |   | $ | 2,297,942 |   | $  | (2,892,833 | ) | $ | (591,615 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued for cash, $0.05                                                                                       |   |                         | 20,000    |                       |   | 20                      |   |              | -          |                     |   | - |   |   | 24,980 |   |   |   |   |   | 25,000 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                  of preferred stock                                                                                              |   |                         | 380,677   |                       |   | 381                     |   |              | (951,692   | )                        |   | (952 | ) |   | 571 |   |   | - |   |   | - |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of stock options to 2 officers (2nd half vested)                                                                  |   |                         | -         |                       |   | -                       |   |              | -          |                     |   | - |   |   | 24,929 |   |   | - |   |   | 24,929 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                  shares issued for debt settlement, $0.195 per share                                                              |   |                         | -         |                       |   | -                       |   |              | 278,554    |                     |   | 279 |   |   | 54,039 |   |   | - |   |   | 54,318 |   |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss                                                                                                                   |   |                         | -         |                       |   | -                       |   |              | -          |                     |   | - |   |   | - |   |   | (824,586 | ) |   | (824,586 | ) |
|                                                                                                                                        |   |                         |      |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2006                                                                                                 |   |                         | 1,743,756 |                       |   | 1,744                   |   |              | 1,259,923  |                     |   | 1,260 |   |   | 2,402,461 |   |   | (3,717,419 | ) |   | (1,311,954 | ) |

----

|                                                                                                                                                |   | Common Stock       |       | Preferred Stock  |   | AdditionalPaid-in  |   | Accumulated  |       | TotalStockholders'  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|----------------------------|--------|-------------------------|--------|-------------------|------------|--------------------------|--------|
|                                                                                                                                                |   | Shares (Restated)  |       | Amount                |   | Shares             |   | Amount       |       | Capital                  |   | Deficit |   | Deficit |   |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |
| Preferred                  shares issued for debt settlement, $0.090 per share                                                                      |   |                         | -          |                       |   | -                       |   |              | 5,222,222  |                     |   | 5,222 |   |   | 464,778 |   |   | - |   |   | 470,000 |   |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued for notes $0.020                                                                                              |   |                         | 732,000    |                       |   | 732                     |   |              | -          |                     |   | - |   |   | 318,268 |   |   |   |   |   | 319,000 |   |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of stock options to 2 officers (vested)                                                                                   |   |                         | -          |                       |   | -                       |   |              | -          |                     |   | - |   |   | 93,484 |   |   | - |   |   | 93,484 |   |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued for cash, $0.05                                                                                               |   |                         | 20,000     |                       |   | 20                      |   |              | -          |                     |   | - |   |   | 24,980 |   |   |   |   |   | 25,000 |   |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued for cash, $0.025                                                                                              |   |                         | 16,000     |                       |   | 16                      |   |              | -          |                     |   | - |   |   | 9,964 |   |   |   |   |   | 9,980 |   |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                  shares issued to officers and directors for services, $0.10 per                  share                                   |   |                         | -          |                       |   | -                       |   |              | 3,740,000  |                     |   | 3,740 |   |   | 370,260 |   |   | - |   |   | 374,000 |   |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                  of preferred stock                                                                                                      |   |                         | 270,516    |                       |   | 271                     |   |              | (676,289   | )                        |   | (676 | ) |   | 406 |   |   | - |   |   | - |   |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss                                                                                                                           |   |                         | -          |                       |   | -                       |   |              | -          |                     |   | - |   |   | - |   |   | (484,269 | ) |   | (484,269 | ) |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2007                                                                                                         |   |                         | 2,782,271  |                       |   | 2,782                   |   |              | 9,545,856  |                     |   | 9,546 |   |   | 3,684,601 |   |   | (4,201,688 | ) |   | (504,759 | ) |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  shares issued relating to reverse stock split (shareholders with                  less than                  25 old shares) |   |                         | 979        |                       |   | 1                       |   |              | -          |                     |   | - |   |   | (1 | ) |   | - |   |   | - |   |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss for the 3 mo. ended March 31, 2008                                                                                        |   |                         | -          |                       |   | -                       |   |              | -          |                     |   | - |   |   | - |   |   | (83,586 | ) |   | (83,586 | ) |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  March 31, 2008                                                                                                            |   |                         | 2,783,250  |                       |   | 2,783                   |   |              | 9,545,856  |                     |   | 9,546 |   |   | 3,684,600 |   |   | (4,285,274 | ) |   | (588,345 | ) |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                  of preferred stock                                                                                                      |   |                         | 18,785,540 |                       |   | 18,786                  |   |              | (1,878,554 | )                        |   | (1,879 | ) |   | (16,907 | ) |   | - |   |   | - |   |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss for the 3 mo. ended June 30, 2008                                                                                         |   |                         | -          |                       |   | -                       |   |              | -          |                     |   | - |   |   | - |   |   | (126,435 | ) |   | (126,435 | ) |
|                                                                                                                                                |   |                         |       |                       |   |                    |   |              |       |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  June 30, 2008                                                                                                             |   |                         | 21,568,790 |                       |   | 21,569                  |   |              | 7,667,302  |                     |   | 7,667 |   |   | 3,667,693 |   |   | (4,411,709 | ) |   | (714,780 | ) |

----

|                                                                                                      |   |                         |     |                         |   | From                Inception    |   |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------|----------|------------------------------|--------|----------------------------------|--------|
|                                                                                                      |   | For                the       |     | For                the       |   | (January                7, 1993) |   |
|                                                                                                      |   | Three Months Ended |     | Three Months Ended |   | through                          |   |
|                                                                                                      |   | June                30, 2008 |     | June                30, 2007 |   | June                30, 2008     |   |
| Cash                flows from operating activities:                                                      |   |                         |     |                         |   |                             |   |   |   |   |
| Net                loss                                                                                   |   | $                            | (126,435 | )                            |   | (95,754                          | )      |   | (4,411,709 | ) |
| Adjustments                to reconcile net loss to net cash used by operating                activities: |   |                         |     |                         |   |                             |   |   |   |   |
| Depreciation                                                                                              |   |                         | 206      |                         |   | 293                              |   |   | 43,774 |   |
| Stock                Based Compensation                                                                   |   |                         | -        |                         |   | -                                |   |   | 553,167 |   |
| Impairment                Loss                                                                            |   |                         | -        |                         |   | -                                |   |   | 442,800 |   |
| Changes                in operating assets and liabilities:                                               |   |                         |     |                         |   |                             |   |   | - |   |
| Accounts                Payable                                                                           |   |                         | (77,163  | )                            |   | (707                             | )      |   | 80,031 |   |
| Advances                                                                                                  |   |                         | -        |                         |   | -                                |   |   | (264 | ) |
| Judgement                payable                                                                          |   |                         | 5,067    |                         |   | 4,587                            |   |   | 206,084 |   |
| Interest                Payable                                                                           |   |                         | (8,961   | )                            |   | 16,284                           |   |   | 147,341 |   |
| Notes                                                                                                     |   |                         | -        |                         |   | (94,000                          | )      |   | (319,000 | ) |
| Payroll                Liabilities                                                                        |   |                         | 4,590    |                         |   | 3,901                            |   |   | 92,265 |   |
| Deferred                Salaries                                                                          |   |                         | 60,000   |                         |   | 60,000                           |   |   | 468,000 |   |
| Loans                Payable                                                                              |   |                         | 252,461  |                         |   | 9,169                            |   |   | 304,574 |   |
| Net                cash used by operating activities                                                      |   |                         | 109,765  |                         |   | (96,227                          | )      |   | (2,392,937 | ) |
|                                                                                                      |   |                         |     |                         |   |                             |   |   |   |   |
| Cash                flows from investing activities:                                                      |   |                         |     |                         |   |                             |   |   |   |   |
| Purchase                of property and equipment                                                         |   |                         | -        |                         |   | -                                |   |   | (45,828 | ) |
| Investment                                                                                                |   |                         | -        |                         |   | -                                |   |   | (1,000 | ) |
| Asher                #1 Oil Well                                                                          |   |                         | 103,077  |                         |   | -                                |   |   | - |   |
| Asher                #2 Project                                                                           |   |                         | 5,008    |                         |   | -                                |   |   | - |   |
| Red                Oak Project                                                                            |   |                         | (242,000 | )                            |   |                             |   |   | (242,000 | ) |
| West                Peach Project                                                                         |   |                         | 15,035   |                         |   | -                                |   |   | (36,970 | ) |
| Net                cash used by investing activities                                                      |   |                         | (118,880 | )                            |   | -                                |   |   | (325,798 | ) |
|                                                                                                      |   |                         |     |                         |   |                             |   |   |   |   |
| Cash                flows from financing activities:                                                      |   |                         |     |                         |   |                             |   |   |   |   |
| Proceeds                from issuance of common stock                                                     |   |                         | -        |                         |   | 94,000                           |   |   | 563,031 |   |
| Proceeds                from issuance of preferred stock                                                  |   |                         | -        |                         |   | -                                |   |   | 2,137,883 |   |
| Proceeds                on borrowings from related parties                                                |   |                         | 9,306    |                         |   | 2,193                            |   |   | 18,136 |   |
| Net                cash provided by financing activities                                                  |   |                         | 9,306    |                         |   | 96,193                           |   |   | 2,719,050 |   |
|                                                                                                      |   |                         |     |                         |   |                             |   |   |   |   |
| Net                increase in cash                                                                       |   |                         | 191      |                         |   | (34                              | )      |   | 315 |   |
|                                                                                                      |   |                         |     |                         |   |                             |   |   |   |   |
| Cash,                beginning of period                                                                  |   |                         | 124      |                         |   | 62                               |   |   | - |   |
|                                                                                                      |   |                         |     |                         |   |                             |   |   |   |   |
| Cash,                end of period                                                                        |   | $                            | 315      |                         | $      | 28                               |   | $ | 315 |   |

----

| 1. | DESCRIPTION                OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT                POLICIES |
|----|----------------------------------------------------------------------------------------------------|

----

----

| 2. | FIXED                ASSETS |
|----|-----------------------------|

|                                                              |   | Three months |    | Three Months |   |
|-------------------------------------------------------------------|--------|-------------------|---------|-------------------|--------|
|                                                              |   | Ended             |    | Ended             |   |
|                                                              |   | 2008              |    | 2007              |   |
| Furniture and fixtures                                  |   | $                 | 20,102  |              | $      | 20,102 |   |
| Computers                and equipment                            |   |              | 25,726  |              |   | 25,726 |   |
|                                                              |   |              | 45,828  |              |   | 45,828 |   |
| Less:                accumulated depreciation                     |   |              | (43,773 | )                 |   | (42,951 | ) |
| Net                Furniture, fixtures, computers & equipment |   |              | 2,055   |              |   | 2,877 |   |
| LLC                Investment                                     |   |              | 1,000   |              |   | 1,000 |   |
| West                Peach Exploration Costs                       |   |              | 36,970  |              |   | 52,005 |   |
| Asher                #1 Oil Well                                  |   |              | 0       |              |   | 103,077 |   |
| Asher                #2 Exploration Costs                         |   |              | 0       |              |   | 5,008 |   |
| Red                Oak Exploration Costs                          |   |              | 242,000 |              |   | 0 |   |
| Total                Fixed Assets                                 |   |              | 282,025 |              |   | 163,967 |   |

| 3. | RELATED                PARTY TRANSACTIONS |
|----|-------------------------------------------|

|                                                                                                                                       |   | June 30, 2008 |   | June 30, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|-------------------------|--------|
| Notes                payable from officers of the Company bearing interest at 8% unsecured                and                due on demand |   | $                       | 18,137 |                    | $      | 11,562 |   |

| 4. | OTHER                CURRENT LIABILITIES |
|----|------------------------------------------|

**$**

| 5. | STOCKHOLDERS’                DEFICIT |
|----|--------------------------------------------|

----

| 6. | STOCK                OPTIONS |
|----|------------------------------|

| 7. | LITIGATION |
|----|------------|

| 8. | SUBSEQUENT                EVENTS |
|----|----------------------------------|

----

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT OF      OPERATIONS.**

**Our      Background**

**Our      Business**

**Our      Oil and Gas Properties **

**Red      Oak Prospect **

**West      Peach Creek Prospect **

**Asher      Prospects**

**Liquidity      and Capital Resources.**

----

**Results      of Operations**

**Our      Plan of Operation for the Next Twelve Months**

**ITEM      4 . CONTROLS AND PROCEDURES**

**Evaluation      Of Disclosure Controls And Procedures**

**Management's      Report On Internal Control Over Financial Reporting**

----

**PART      II – OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS.**

**ITEM      2. UNREGISTERED SALES OF EQUITY SECURITIES.**

NONE

**ITEM      3. DEFAULTS UPON SENIOR SECURITIES.**

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.**

**ITEM      5. OTHER INFORMATION**

**ITEM      6. EXHIBITS**

**List      of Exhibits**

**SIGNATURES**

**FRIENDLY      ENERGY EXPLORATION**

| Date:                August 19, 2008                                             |
|----------------------------------------------------------------------------------|
|                                                                             |
| By:                                                                              | /s/              Douglas Tallant |
| Douglas                Tallant, Director and President                           |
|                                                                             |
| Date:                August 19, 2008                                             |
|                                                                             |
| By:                                                                              | /s/              Donald Trapp |
| Donald                Trapp, Director and Chief Financial                Officer |

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