Drilling with aerated muds is becoming more often used in underbalanced drilling operations. One of the major challenges that has to be faced in such operations is the estimation of the physical behavior of aerated fluids inside the annulus. In this study, experiments have been conducted at METU Multiphase Flow Loop using air-water mixtures with various in-situ flow velocities of 0-120 and 0-10 ft/s, respectively. This study aims to develop a model to estimate the frictional pressure losses for two-phase flow through horizontal eccentric annular geometry. In order to estimate the frictional pressure losses, three different methods were developed: (i) definition of new friction factors by using experimental data; (ii) modification of Lockhart-Martinelli pressure loss correction factor; and (iii) modification of Beggs and Brill model by changing the equation constants. The comparison of the developed models with experimental data has shown that frictional pressure losses can be estimated with a reasonable accuracy.