UNITED STATES SECURITIES AND EXCHANGE COMMISSION  Washington, D.C. 20549  FORM 10-Q   (Mark One)þQuarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934For the quarterly period ended: June 30, 2009oroTransition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934For the transition period from                   toCommission file number 0-31423  FRIENDLY ENERGY EXPLORATION (Exact name of Small Business Issuer as specified in its charter) Nevada91-1832462(State of incorporation)(I.R.S. employer identification no.)502 North Division Street, Carson City, NV89703(Address of principal executive offices)(Zip code) 702-953-0411 (Registrants telephone number, including area code)  Indicate by C\checkmark  whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceeding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days:  YESx  NO ̈  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. Large accelerated filer ̈Accelerated filer ̈Non-accelerated filer ̈Smaller Reporting Companyx  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).YESo NO x  State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: As of June 30, 2009, there were 21,568,790 shares of our common stock outstanding.  Transitional Small Business Disclosure Format. YESo NO x  1    PART I - FINANCIAL INFORMATION  ITEM 1.  FINANCIAL STATEMENTS  The Financial Statements of the Company required to be filed with this Form 10-Q Quarterly Report were prepared by management and commence below, together with related Notes.  In the opinion of management, the Financial Statements present fairly the financial condition of the Company.    2    FRIENDLY ENERGY CORP.(A Development Stage Company)CONSOLIDATED BALANCE SHEETUnauditedJune 30, 2009December 31, 2008ASSETSCurrent assetsCash and cash equivalents$                             83$                           115Advances--83115Other AssetsProperty and equipment, net1,2331,644Investment1,0001,000Notes319,000319,000Panther Creek Project15,000-Red Oak Project242,000242,000Talpa Project50,00050,000West Peach Project36,97036,970665,203650,614Total Assets$                      665,286$                      650,729LIABILITIES AND STOCKHOLDERS' DEFICITLIABILITIESCurrent liabilitiesAccounts Payable$                      87,291$                      87,291Payroll Tax Liabilities105,78996,609Judgement payable227,663216,605Deferred Salaries708,000588,000Interest Payable161,507144,697Loan Payable359,478359,478Loans Payable-Related Parties33,17528,2811,682,9031,520,9611,682,9031,520,961STOCKHOLDERS' DEFICITCommon stock, $0.001 par value; 100,000,000 sharesauthorized, 21,568,790 and 21,568,790 shares,respectively, issued and outstanding21,56921,569Preferred Stock, $0.001 par value, 10,000,000 sharesauthorized, 7,867,302 and 7,667,302 shares,7,8677,667respectively, issued and outstandingAdditional paid-in capital3,682,4933,667,693Accumulated deficit in the development stage(4,729,546)(4,567,160)Total stockholders' deficit(1,017,617)(870,231)Total liabilities and stockholders' deficit$                    665,286$                    650,729  3


|                                        |                            |                                        |                    |           |                    |            |                  |           |                  |           |                 |  |  |  |  |  | 
|--------------------------------------- | -------------------------- | -------------------------------------- | ------------------ | --------- | ------------------ | ---------- | ---------------- | --------- | ---------------- | --------- | --------------- |  |  |  |  |  | 
|FRIENDLY ENERGY CORP.                  
|(A Development Stage Company)          
|CONSOLIDATED STATEMENT OF OPERATIONS   
|Unaudited                              
|                                        |                            |                                        |                    |           |                    |            |                  |           |                  |           | From Inception 
|                                        |                            |                                        | For the            |           | For the            |            | For the          |           | For the          |           | (Feb. 11, 2005)
|                                        |                            |                                        | Three Months Ended |           | Three Months Ended |            | Six Months Ended |           | Six Months Ended |           | through        
|                                        |                            |                                        | June 30, 2009      |           | June 30, 2008      |            | June 30, 2009    |           | June 30, 2008    |           | June 30, 2009  
|                                        |                            |                                        |                    |           |                    |            |                  |           |                  |           | (Restated)     
|                                        |                            |                                        |                    |           |                    |            |                  |           |                  |           |                
|Revenue                                 | $-                         |                                        | $-                 |           | $-                 |            | $ 5,035          |           | $  16,053       
|                                        |                            |                                        |                    |           |                    |            | -                |           | -                |           |                
|Operating expenses                      |                            |                                        |                    |           | -                  |            | -                |           |                 
|                                        | Depreciation               | 206                                    |                    | 206       |                    | 411        |                  | 412       |                  | 9,308    
|                                        | Dry Hole Cost              | -                                      |                    | -         |                    | -          |                  | -         |                  | 88,157   
|                                        | Intangible Drilling Costs  | -                                      |                    | -         |                    | -          |                  | -         |                  | 333,206  
|                                        | Legal Fees                 | 625                                    |                    | 50        |                    | 1,310      |                  | 850       |                  | 21,677   
|                                        | Officer Wages              | 60,000                                 |                    | 60,000    |                    | 120,000    |                  | 120,000   |                  | 1,107,000
|                                        | Oil Well Operations Cost   | -                                      |                    | -         |                    | -          |                  | 3,157     |                  | 9,740    
|                                        | Payroll Expenses           | 4,590                                  |                    | 4,590     |                    | 9,180      |                  | 9,180     |                  | 68,521   
|                                        | Professional Fees          | 2,000                                  |                    | 17,708    |                    | 2,750      |                  | 19,018    |                  | 60,653   
|                                        | Stock Based Compensation   | -                                      |                    | -         |                    | -          |                  | -         |                  | 355,842  
|                                        | Telephone                  | 146                                    |                    | 141       |                    | 288        |                  | 283       |                  | 19,673   
|                                        | Travel & Entertainment     | 115                                    |                    | 222       |                    | 203        |                  | 791       |                  | 23,986   
|                                        | General and administrative | 209                                    |                    | 30,046    |                    | 375        |                  | 30,358    |                  | 53,032   
|                                        |                            |                                        |                    |           |                    |            |                  |           |                  |           |                
|                                        |                            | Total operating expenses               | 67,891             |           | 112,963            |            | 134,518          |           | 184,049          |           | 2,150,794      
|                                        |                            |                                        |                    |           |                    |            | -                |           | -                |           |                
|                                        |                            | Loss from operations                   | (67,891)           |           | (112,963)          |            | (134,518)        |           | (179,014)        |           | (2,134,742)    
|                                        |                            |                                        |                    |           |                    |            | -                |           |                  |           |                
|Other income (expenses):                |                            |                                        |                    |           | -                  |            |                  |           |                 
|                                        | Interest Expense           | (14,003)                               |                    | (13,472)  |                    | (27,868)   |                  | (31,007)  |                  | (284,644)
|                                        | Lawsuit Judgment           | -                                      |                    | -         |                    | -          |                  | -         |                  | (110,000)
|                                        |                            | Total other income (expenses)          | (14,003)           |           | (13,472)           |            | (27,868)         |           | (31,007)         |           | (394,644)      
|                                        |                            |                                        |                    |           |                    |            |                  |           |                  |           |                
|                                        |                            | Loss before provision for income taxes | (81,894)           |           | (126,435)          |            | (162,386)        |           | (210,021)        |           | (2,529,386)    
|Provision for income taxes              | -                          |                                        | -                  |           | -                  |            | -                |           | -               
|                                        |                            |                                        |                    |           |                    |            |                  |           |                  |           |                
|                                        |                            | Net loss                               | $ (81,894)         |           | $  (126,435)       |            | $  (162,386)     |           | $  (210,021)     |           | $  2,529,386)  
|                                        |                            |                                        |                    |           |                    |            |                  |           |                  |           |                
|                                        |                            |                                        |                    |           |                    |            |                  |           |                  |           |                
|Basic and diluted loss per common share | $  (0.01)                  |                                        | $  (0.01)          |           | $  (0.01)          |            | $  (0.04)        |           | $  (0.38)       
|                                        |                            |                                        |                    |           |                    |            |                  |           |                  |           |                
|Basic and diluted weighted average      |                            |                                        |                    |           |                    |            |                  |           |                 
|                                        | common shares outstanding  | 21,568,790                             |                    | 8,769,442 |                    | 21,568,790 |                  | 5,775,895 |                  | 6,638,341

4


|                                                                                |                   |                 |             |             |               |              |            
|------------------------------------------------------------------------------- | ----------------- | --------------- | ----------- | ----------- | ------------- | ------------ | -----------
|FRIENDLY ENERGY CORP.                                                          
|(A Development Stage Company)                                                  
|STATEMENT OF STOCKHOLDERS' DEFICIT                                             
|Restated for 25-for-1 Reverse Stock Split 3/24/2008                            
|Unaudited                                                                      
|                                                                                |                   |                 |             |             |               |              |            
|                                                                                |                   |                 |             |             | Additional    |              | Total      
|                                                                                | Common Stock      | Preferred Stock | Paid-in     | Accumulated | Stockholders'
|                                                                                | Shares (Restated) | Amount          | Shares      | Amount      | Capital       | Deficit      | Deficit    
|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 services, $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)
|                                                                                |                   |                 |             |             |               |              |            
|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      

5


|                                                                                                 |            |        |             |         |           |             |            
|------------------------------------------------------------------------------------------------ | ---------- | ------ | ----------- | ------- | --------- | ----------- | -----------
|                                                                                                 |            |        |             |         |           |             |            
|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)       | -           | -          
|                                                                                                 |            |        |             |         |           |             |            
|Conversion of preferred stock                                                                    | 18,785,540 | 18,786 | (1,878,554) | (1,879) | (16,907)  | -           | -          
|                                                                                                 |            |        |             |         |           |             |            
|Net Loss                                                                                         | -          | -      | -           | -       | -         | (365,473)   | (365,473)  
|                                                                                                 |            |        |             |         |           |             |            
|Balance, December 31, 2008                                                                       | 21,568,790 | 21,569 | 7,667,302   | 7,667   | 3,667,693 | (4,567,161) | (870,232)  
|                                                                                                 |            |        |             |         |           |             |            
|Preferred Shares Purchased                                                                       |            |        | 200,000     | 200     | 14,800    |             | 15,000     
|                                                                                                 |            |        |             |         |           |             |            
|Net Loss for 6 months ended June 30, 2009                                                        | -          | -      | -           | -       | -         | (162,385)   | (162,385)  
|                                                                                                 |            |        |             |         |           |             |            
|Balance, June 30, 2009                                                                           | 21,568,790 | 21,569 | 7,867,302   | 7,867   | 3,682,493 | (4,729,546) | (1,017,617)

6


|                                             |                    |  |                    |  |                  |  |                  |  |                 |  |  | 
|-------------------------------------------- | ------------------ |  | ------------------ |  | ---------------- |  | ---------------- |  | --------------- |  |  | 
|FRIENDLY ENERGY CORP.                       
|(A Development Stage Company)               
|CONSOLIDATED STATEMENT OF CASH FLOWS        
|Unaudited                                   
|                                             |                    |  |                    |  |                  |  |                  |  | From Inception 
|                                             | For the            |  | For the            |  | For the          |  | For the          |  | (Feb. 11, 2005)
|                                             | Three Months Ended |  | Three Months Ended |  | Six Months Ended |  | Six Months Ended |  | through        
|                                             | June 30, 2009      |  | June 30, 2008      |  | June 30, 2009    |  | June 30, 2008    |  | June 30, 2009  
|                                             |                    |  |                    |  |                  |  |                  |  | (Restated)     
|Cash flows from operating activities:        |                    |  |                    |  |                  |  |                  |  |                
|Net loss                                     | (81,892)           |  | (126,435)          |  | (162,384)        |  | (210,021)        |  | (2,526,983)    
|Adjustments to reconcile net loss to         |                    |  |                    |  |                  |  |                  |  |                
|net cash used by operating activities:       |                    |  |                    |  |                  |  |                  |  |                
|Depreciation                                 | 206                |  | 206                |  | 411              |  | 412              |  | 9,308          
|Stock Based Compensation                     |                    |  |                    |  | -                |  | -                |  | 574,302        
|Changes in operating assets and liabilities: |                    |  |                    |  |                  |  |                  |  |                
|Accounts Payable                             | -                  |  | (77,164)           |  | -                |  | (78,437)         |  | 2,084          
|Advances                                     | -                  |  | -                  |  | -                |  | 97               |  | (361)          
|Judgment Payable                             | 5,598              |  | 5,067              |  | 11,058           |  | 10,010           |  | 227,663        
|Interest Payable                             | 8,405              |  | (8,961)            |  | 16,810           |  | 3,631            |  | 149,477        
|Notes                                        |                    |  |                    |  | -                |  | -                |  | (319,000)      
|Payroll Liabilities                          | 4,590              |  | 4,590              |  | 9,180            |  | 9,180            |  | 68,521         
|Deferred Salaries                            | 60,000             |  | 60,000             |  | 120,000          |  | 120,000          |  | 708,000        
|Loans Payable                                | -                  |  | 252,461            |  | -                |  | 253,005          |  | 359,139        
|Net cash used by operating activities        | (3,093)            |  | 109,764            |  | (4,925)          |  | 107,877          |  | 16,270         
|                                             |                    |  |                    |  |                  |  |                  |  |                
|Cash flows from investing activities:        |                    |  |                    |  |                  |  |                  |  |                
|Purchase of property and equipment           | -                  |  | -                  |  | -                |  | -                |  | -              
|Investment                                   | -                  |  | -                  |  | -                |  | -                |  | (4,110)        
|Asher #1 Oil Well                            | -                  |  | 103,077            |  | -                |  | 103,077          |  | (1,000)        
|Asher #2 Project                             | -                  |  | 5,008              |  | -                |  | 5,008            |  | -              
|Panther Creek Project                        | -                  |  | -                  |  | (15,000)         |  | -                |  | (15,000)       
|Red Oak Project                              | -                  |  | (242,000)          |  | -                |  | (242,000)        |  | (242,000)      
|Talpa Project                                | -                  |  |                    |  | -                |  | -                |  | (50,000)       
|West Peach Project                           | -                  |  | 15,035             |  | -                |  | 15,035           |  | (36,970)       
|Net cash used by investing activities        | -                  |  | (118,880)          |  | (15,000)         |  | (118,880)        |  | (349,080)      
|                                             |                    |  |                    |  |                  |  |                  |  |                
|Cash flows from financing activities:        |                    |  |                    |  |                  |  |                  |  |                
|Proceeds from issuance of common stock       | -                  |  | -                  |  | -                |  | -                |  | 364,520        
|Proceeds from issuance of preferred stock    | -                  |  | -                  |  | 15,000           |  | -                |  | 719,318        
|Proceeds on borrowings from related parties  | 2,963              |  | 9,307              |  | 4,894            |  | 11,051           |  | (8,019)        
|Net cash provided by financing activities    | 2,963              |  | 9,307              |  | 19,894           |  | 11,051           |  | 1,075,819      
|                                             |                    |  |                    |  |                  |  |                  |  |                
|Net increase in cash                         | (132)              |  | 191                |  | (32)             |  | 48               |  | 83             
|                                             |                    |  |                    |  |                  |  |                  |  |                
|Cash, beginning of period                    | 214                |  | 124                |  | 115              |  | 124              |  | -              
|                                             |                    |  |                    |  |                  |  |                  |  |                
|Cash, end of period                          | $83                |  | $ 315              |  | $83              |  | $ 439            |  | $83            

7   NOTES TO FINANCIAL STATEMENTS  June 30, 2009  1. DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES  Interim Financial Statements  The information furnished in the accompanying interim consolidated financial statements has not been audited by independent accountants. In the opinion of management, the interim consolidated financial statements include all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three months ended June 30, 2009 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2009, or any other period. The interim consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.  Description of business and history  Friendly Energy Exploration, Nevada corporation, (hereinafter referred to as the Company or Friendly Energy) was incorporated in the State of Nevada on January 7, 1993.  The company was originally in the business of selling electric power and related services to small and medium sized businesses in a newly deregulated California market.  The Company is now in the business of oil and gas exploration.  The Company operations have been limited to general administrative operations, participation in the drilling of three oil wells and a gas well, and in the development of four oil and gas prospects.  It is considered a development stage company in accordance with Statement of Financial Accounting Standards No. 7.  Management of Company  The company filed its articles of incorporation with the Nevada Secretary of State on January 7, 1993, indicating  G. Alfred Roensch as the incorporator.  The company filed its annual list of officers and directors with the Nevada Secretary of State on January 7, 1993, indicating its President is G. Alfred Roensch and its Secretary and Treasurer is Owen Stephenson and    were both listed as directors on this filing.  The current President is Douglas Tallant and the current Secretary and Treasurer is Donald Trapp.  Going concern  The Company incurred net losses of approximately $2,529,386 from the period of February 1, 2005 (date of entering the oil and gas exploration business)  through June 30, 2009 and has commenced its operations on a very limited basis. However, it is still in the development stages, raising substantial doubt about the Companys ability to continue as a going concern.  The Company may seek additional sources of capital through the issuance of debt or equity financing, but there can be no assurance the Company will be successful in accomplishing its objectives.  The ability of the Company to continue as a going concern is dependent on additional sources of capital and the success of the Companys plan.  The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.  Year end  The Companys yearend is December 31.  Principles of consolidation  The consolidated financial statements include the accounts of the Company and its subsidiaries.  All significant intercompany transactions and balances have been eliminated.  Use of estimates  The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  Restatement of Financial Information prior to January 1, 2008 There was a 25-for-1 reverse stock split on March 24, 2008, so information in the financial statements is restated for all periods prior to January 1, 2008.  Property and equipment  Property and equipment are stated at cost less accumulated depreciation.  Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which are generally 3 to 27 years.  The  8   amounts of depreciation provided are sufficient to charge the cost of the related assets to operations over their estimated useful lives.  The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful life of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. The Company uses an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.  Asher Well and Prospect - The Company has written down its interest in the Asher #1 oil well and the Asher #2 Project and has given its interest to D-Mil Production in return for canceling its accounts payable balance.  Panther Creek Project - Friendly Energy Exploration purchased, through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES), a 100% working interest in the Panther Creek Unit oil and gas lease in Texas.  The total acreage is 115 and there are 12 shut-in wells.  FES intends to restart the water-flood project and to explore a deeper zone.  Red Oak Prospect - Friendly Energy Exploration, through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES), participated in the drilling of a 3,200 foot deep oil and gas well in southwest Iowa through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES).  FES owns a 42.5% working interest in the well.  The well has not been completed and may never be completed because there is currently no viable way to market the gas.  The nearest gas collection pipeline is several miles away.  Talpa Project - Friendly Energy Exploration purchased, through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES), a 25% working interest in an 1,100 acre oil and gas lease in Texas.  The seller has not been able to provide clear title, and FES is considering legal remedies.  West Peach Creek Prospect - Friendly Energy Exploration is planning to drill a 5,400 foot deep well in central Oklahoma through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES).  If the geophysicist and operator each purchase a 10% working interest, as expected, then FES will own an 80% working interest in the well.  The location is on the West Peach Creek Prospect, a development/exploratory prospect, located on the western edge of the giant St. Louis Oil Field.  Income taxes  The Company accounts for its income taxes in accordance with Statement of Financial Accounting Standards No. 109, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.  Management feels the Company will have a net operating loss carryover to be used for future years.  Such losses may not be fully deductible due to the significant amounts of non-cash service costs.  The Company has not established  a valuation allowance for the full tax benefit of the operating loss carryovers due to the uncertainty regarding realization.  Net loss per common share  The Company computes net loss per share in accordance with SFAS No. 128, Earnings per Share (SFAS 128) and SEC Staff Accounting Bulletin No. 98 (SAB 98).  Under the provisions of SFAS 128 and SAB 98, basic net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period.  The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is antidilutive.  For the period from February 1, 2005 (date of entering the oil and gas exploration business) through June 30, 2009, no options and warrants were excluded from the computation of diluted earnings per share because their effect would be antidilutive.  Concentration of risk  A significant amount of the Companys assets and resources are currently dependent on the financial support of Douglas Tallant and Donald Trapp.  Should they determine to no longer finance the operations of the company before new capital is raised, it may be unlikely for the company to continue.  Revenue recognition  The Company has had revenues of $16,053 to date from its operations.  Revenue is recognized as it is received.  Inventory valuation  At this time the Company is not expected to hold inventory.   9   Legal Procedures  The Company is not aware of, nor is it involved in any pending legal proceedings.  2.    FIXED ASSETS  June 30, 2009June 30, 2008Furniture & Fixtures$
20,102$
20,102Computers & Equipment$
25,727$
25,727$
45,829$
45,829less Accumulated Depreciation$
(44,596)$
(43,773)Net Furniture,  Fixtures, Computers & Equip.$
1,233$
2,055LLC Investment$
1,000$
1,000Notes$
319,000$
319,000Panther Creek$
15,000$
-Red Oak Project$
242,000$
242,000Talpa Project$
50,000$
-West Peach Project$
36,970$
36,970Total Fixed Assets$
665,203$
601,025   3. RELATED PARTY TRANSACTIONS  For the three months ending June 30, 2009, the officers agreed with the Company to defer their salaries totaling $60,000, see note 7.  As of June 30, 2009 and 2008, loans payable from related parties consists of the following:  June 30, 2009                June 30, 2008 Notes payable  from officers of the Company bearing interest at 8% unsecured and due on demand              $   33,175                      $   18,137  4. OTHER CURRENT LIABILITIES  The company has accrued for unpaid federal payroll taxes in the amounts of  $105,789 and $92,265 for  the  three months ended June 30, 2009 and 2008, respectively.  $37,268 is owed from 2000 and 2001 unpaid federal payroll taxes; the Company has filed the payroll taxes with the Internal Revenue Service.  The balance is owed for accrued payroll taxes on deferred salaries; the Company has yet to file the payroll tax forms with the Internal Revenue Service or related state taxing authorities.  The company has accrued deferred salaries owed to three officers in the amount of $708,000 and 468,000  through June 30, 2009 and 2008, respectively.  The company has accrued interest in the amount of $161,507 and $136,292 through June 30, 2009 and 2008, respectively.  The accrued interest includes interest on unpaid payroll taxes and related party loans.  5. STOCKHOLDERS DEFICIT  Common Shares:  As of December 31, 2008 there were 21,568,790 share of common stock outstanding. The total of outstanding and issued common shares at June 30, 2009 and 2008 was 21,568,790 and 2,783,250 (restated for 25-for-1 reverse split in March 2008).  Preferred Shares:   Each share of preferred stock is convertible into ten shares of common stock, has voting rights equal to ten shares of common stock, and is not affected by any reverse split of the common stock.  The board of directors has not specified any other rights or privileges with respect to the preferred stock.  The total of outstanding and issued preferred shares at June 30, 2009 and 2008 was 7,867,302 and 9,545,856.  6. STOCK OPTIONS   10   No stock options were granted or vested during the three months ending June 30, 2009.   7. LITIGATION  In 2005, an employee received a defaulted judgment against the Company concerning the case Bowers v. Friendly Energy Corporation, San Diego Superior Court Case No. 775084.  The default judgment in the principle sum of $434,211.50 was reduced to a principal amount of $110,000, with interest from October 13, 2000.   The transaction has been recorded on the financial statements along with  accrued interest of  $112,065.  The total of $227,663 is reported in the liability section of the balance sheet.  8. SUBSEQUENT EVENTS  None  ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT OF OPERATIONS.  This following information specifies certain forward-looking statements of management of the company. Forward-looking statements are statements that estimate the happening of future events are not based on historical fact. Forward-looking statements may be identified by the use of forward-looking terminology, such as "may", "shall", "will", "could", "expect", "estimate", "anticipate", "predict", "probable", "possible", "should", "continue", or similar terms, variations of those terms or the negative of those terms. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements.  The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. No assurance can be given that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.   Our Background Friendly Energy Exploration was formed under the laws of the State of Nevada on January 7, 1993 under the name Eco-Systems Marketing.  Eco-Systems subsequently changed its name to Rama Financial Corporation. Amendments to the Articles of Incorporation were filed changing the corporate name to Friendly Energy Corporation and then, on March 4, 2008, to Friendly Energy Exploration.  Friendly Energy Exploration, from its inception in 1993 to 2005, was engaged primarily in establishing itself as an electric service provider to California customers.  Friendly Energy Exploration changed its business focus in February 2005 to pursuing oil and gas development opportunities.  Our Business Friendly Energy Exploration was inactive from 2002 to February 2005, when the company began the process of identifying potential oil and gas prospects for development.  The primary focus is on property in established oil fields to minimize any potential risk.  The Company operations include participation in the drilling of three oil wells and a gas well, and in the development of four oil and gas prospects.  Our Oil and Gas Properties  Asher Well and Prospect - The Company has written down its interest in the Asher #1 oil well and the Asher #2 Project and has given its interest to D-Mil Production in return for canceling its accounts payable balance.  Panther Creek Project - Friendly Energy Exploration purchased, through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES), a 100% working interest in the Panther Creek Unit oil and gas lease in Texas.  The total acreage is 115 and there are 12 shut-in wells.  FES intends to restart the water-flood project and to explore a deeper zone.   11   Red Oak Prospect - Friendly Energy Exploration, through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES), participated in the drilling of a 3,200 foot deep oil and gas well in southwest Iowa through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES).  FES owns a 42.5% working interest in the well.  The well has not been completed yet until arrangements can be made to sell the gas.  Talpa Project- Friendly Energy Exploration purchased, through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES), a 25% working interest in an 1,100 acre oil and gas lease in Texas.  The seller has not been able to provide clear title, and FES is considering legal remedies.  West Peach Creek Prospect - Friendly Energy Exploration is planning to drill a 5,400 foot deep well in central Oklahoma through its wholly owned subsidiary, Friendly Energy Services, Inc. (FES).  If the geophysicist and operator each purchase a 10% working interest, as expected, then FES will own an 80% working interest in the well.  The location is on the West Peach Creek Prospect, a development/exploratory prospect, located on the western edge of the giant St. Louis Oil Field.  Liquidity and Capital Resources. For period ended June 30, 2009, we had total assets of $665,286, compared to $650,729 total assets for the period ending December 31, 2008.  The change was due to depreciation.  At June 30, 2009, we had current liabilities of $1,682,903 which was represented by accounts payable, payroll liabilities, judgment payable, deferred salaries, interest payable and loan payable to related parties.  At December 31, 2008 we had current liabilities of $1,520,961.  The increase in liabilities was due primarily to deferred salaries.  At June 30, 2009, we had a working capital deficiency of $1,107,617compared to $870,231 at December 31, 2008.  We do not believe that our current cash resources will be able to maintain our current operations for an extended period of time. We will be required to raise additional funds or arrange for additional financing over the next 12 months to adhere to our development schedule. No assurance can be given, however, that we will have access to additional cash in the future, or that funds will be available on acceptable terms to satisfy our working capital requirements. If we are not able to arrange for additional funding or if our officers, directors and shareholders stop advancing funds to us, we may be forced to make other arrangements for financing such as loans or entering into strategic alliances. We have not identified any alternative sources of financing.   Results of Operations  During the three month period ended June 30, 2009, the loss from operations was $81,894 as compared to the same three month period in 2008 the loss was $126,435. The greater loss in the three month period ending June 30, 2008 was due primarily to a write-down of the Asher #1 well.From inception toJune 30, 2009, Friendly Energy Exploration has incurred cumulative net losses of $2,529,386. Because we are not generating any significant revenues, our only external source of liquidity is the sale of our capital stock and any advances from officers, directors or shareholders.  Our Plan of Operation for the Next Twelve Months  We anticipate that we will need to raise additional capital within the next 12 months in order to continue as a going concern.  The Company is in the process of raising capital to fund the development of future wells.  To the extent that additional capital is raised through the sale of equity or equity- related securities, the issuance of such securities could result in dilution of stockholders. There can be no assurance that additional funding will be available on favorable terms, if at all. If adequate funds are not available within the next 12 months, we may be required to curtail our operations significantly or to obtain funds through entering into arrangements with collaborative partners or others that may require us to relinquish rights to certain of our assets that we would not otherwise relinquish. Friendly Energy Exploration does anticipate some expenditures within the next 12 months for new acquisitions. The Company may elect to raise funds for potential drilling through equity financing or possible joint ventures and participation agreements. If Friendly Energy Exploration is successful in raising anticipated funds the company anticipates a significant change in the number of its employees within the next 12 months.  ITEM 4 .  CONTROLS AND PROCEDURES  Evaluation Of Disclosure Controls And Procedures  Our Chief Executive Officer, and our Chief Financial Officer, have performed an evaluation of the Company's disclosure controls and procedures, as that term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange  12   Act"), as of June 30, 2009 and each has concluded that such disclosure controls and procedures are effective to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission's rules and forms.  Management's Report On Internal Control Over Financial Reporting  Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.  Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the Company conducted an assessment of the effectiveness of its internal control over financial reporting as of June 30, 2009. Based on this assessment, management concluded that our internal control over financial reporting was effective as of June 30, 2009.  No changes in the Company's internal controls over financial reporting occurred during the period ending June 30, 2009 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.   PART II  OTHER INFORMATION   ITEM 1.  LEGAL PROCEEDINGS. NONE   ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES.NONE  ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.NONE  ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.NONE  ITEM 5.  OTHER INFORMATION  The Company has filed a Form 10-KSB for 2000 in which we answer the original SEC comments.  We are waiting for SEC comments.  The Company has now filed all past 10-Ks and 10-Qs as of July 22, 2009.   ITEM 6.  EXHIBITS  List of Exhibits  Exhibit 31.1 - Amended Section 906 Certification of Periodic Report of the Chief Executive Officer. Exhibit 31.2 - Amended Section 906 Certification of Periodic Report of the Chief Financial Officer. Exhibit 32.1 - Amended Section 302 Certification of Periodic Report of the Chief Executive Officer.  Exhibit 32.2 - Amended Section 302 Certification of Periodic Report of the Chief Financial Officer.  SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused to be signed on its behalf by the undersigned, thereunto duly authorized.  FRIENDLY ENERGY EXPLORATION  Date: August 11, 2009  By: /s/ Douglas Tallant Douglas Tallant, Director and President  Date: August 11, 2009  13    By: /s/ Donald Trapp Donald Trapp, Director and Chief Financial Officer  Exhibit 31.1 I, Douglas Tallant, certify that:  (1)     I have reviewed this Quarterly Report on Form 10-Q of Friendly Energy Corp.;  (2)     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  (3)     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;  (4)    The small business issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:  (a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  (b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;  (c)     Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and  (d)     Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and  · The small business issuer's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):  · (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and  · (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.  Date: August 11, 2009  14    By: /s/ Douglas Tallant Douglas Tallant, Director and President  Exhibit 31.2 I, Donald Trapp, certify that:  (1)     I have reviewed this Quarterly Report on Form 10-Q of Friendly Energy Corp.;  (2)     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  (3)     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;  (4)    The small business issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:  (a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  (b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;  (c)     Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and  (d)     Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and  · The small business issuer's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):  · (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and  · (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.  Date: August 11, 2009  15    By: /s/ Donald Trapp Donald Trapp, Director and Chief Financial Officer  Exhibit 32.1   CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES- OXLEY ACT OF 2002  In connection with the Quarterly Report of Friendly Energy Exploration(the "Company") on Form 10-Q for the period ending June 30, 2009 as filed with the Securities and Exchange Commission on the date hereof (the "Report"),  I, Douglass Tallant, Director of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, that:  (1)  The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and  (2)  The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.  IN WITNESS WHEREOF, the undersigned has executed this certification as of the 14th day May 2009.  By: /s/ Douglas Tallant Douglas Tallant, Director and President  Exhibit 32.2  CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES- OXLEY ACT OF 2002  In connection with the Quarterly Report of Friendly Energy Exploration(the "Company") on Form 10-Q for the period ending June 30, 2009 as filed with the Securities and Exchange Commission on the date hereof (the "Report"),  I, Donald Trapp, Director of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, that:  (1)  The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and  (2)  The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.  IN WITNESS WHEREOF, the undersigned has executed this certification as of the 14th day May 2009.  By: /s/ Donald Trapp Donald Trapp, Director and Chief Financial Officer   16