Stock Traders Daily OTC Alert: FDEI (OTC:BB)

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Traders’ 
Daily OTC Alert

Date:  
May 13th, 2004                
 Issue:  375

Showcasing:  Fidelis Energy Inc.

OTC Bulletin 
Board Symbol:  
FDEI

Shares 
Outstanding:       
57,420,000 
Website:    
www.FidelisEnergy.com
 Current Price:                         
$1.09

FDEI:  With Oil Near $40/Barrel, Energy 
Stocks Should Continue to Benefit From High Energy Prices!!

“As you know, we like energy stocks—a lot.” wrote Robert Howard to subscribers of his Positive Patterns investment 
newsletter late last month.  “And 
they have done well for us over the years.  
But honestly, now more than ever, we think this may be the time for you 
to overweight your portfolio in the 
sector.”--The Street.com, 
3/23/2004.  With oil and gas prices 
at record highs, Fidelis Energy Inc. (OTC:BB  FDEI) 
should benefit from high energy prices.

Fidelis 
Energy Inc. (OTC:BB  
FDEI) is an oil 
and gas company that identifies, acquires and develops working interest 
percentages in smaller, underdeveloped oil and gas projects in California, 
Canada, and other promising locales that do not meet the requirements of larger 
producers and developers. Through the use of modern development techniques such 
as horizontal drilling and 3-D seismic, the company enhances production from 
underdeveloped and under-utilized projects, as it pursues oil and gas production 
throughout North America.

Fidelis 
Energy, Inc. has entered 
into an 80% working interest 
agreement in the Comanche Point Producing Company, Tejon 400 acre lease. The leased lands lie within Sections 
28, 29, 32, 33 of T12N, R18W, SBB&M, Kern County, California.  Recent third-party engineering studies 
of the sub-surface oil sands underlying the lease have estimated total reserves at over 5,000,000 
barrels, and the recoverable 
reserves to contain 2,100,000 barrels of heavy crude oil at depths ranging 
from 400 to 700 feet below the surface in Etchegoin 
Sands.  

At 
$40/Barrel, the recoverable reserves would be valued at over 
$80,000,000!!

Due to the 
successes of other oil and gas operators proximate to the location of Comanche 
Point using various steam methods, it is believed that the planned study will 
bear out a production increase to as 
much as 300 barrels per day when the field is fully rotated under the planned 
steam-flood program.

Under the 
terms of the Oil and Gas Purchase Agreement, the Company will provide $305,000 on the closing date of April 
1, 2004. An amount of $200,000 will 
be paid within 20 days thereafter to commence implementation of the pilot study. 
Following full payback of the Company's investment, the working partner of 
Fidelis will increase to a 30% working interest as the Company decreases to 70% 
interest. Both partners are subject only to a 12.5% royalty to Tejon Ranch on the production.  

The Company 
will also acquire a 35% working 
interest in the North Franklin Project, a Sacramento Basin natural gas play 
from Silver Star Energy, Inc. The project is located in Sacramento County, 
between the cities of Stockton and Sacramento. 

Under the 
terms of the agreement, Fidelis has contributed $500,000 towards the costs of drilling 
and completing the first gas well and convert to a working interest partner on 
all further wells. The North Franklin project is situated along the 
"Eastside Winters Stratigraphic Trend" which has 
produced in excess of 450 Bcf gas. 

Currently at 
North Franklin there is under lease, approximately 1,000 gross acres. The 
multi-objective gas reservoir target is thick, deep-water basin Winters 
Formation. The Winters Formation sands are permeable, upper Cretaceous 
sandstones. Based on a 450 acre closure, 
average net pay sands of 75 feet and a recovery factor of 1200 mcf/acre-foot, the potential prospect reserves are estimated 
at 40.5 Bcf of gas with analog wells nearby having 
initial production rates of 7,000 Mcf per 
day.

Fidelis 
has now signed off on the executed AFE (Authority for Expenditure) for the 
initial 7,800 foot test well, named "Archer-Whitney #1." The well location has 
been chosen, surveyed and permitted. Expected tie-in cost of a successful well 
is estimated at $300,000 of which Fidelis will be 
responsible for its 35% working interest. The prospect is in close proximity to 
existing gas infrastructure in the area. Fidelis has 
been informed by the operator that the spud date of "Archer-Whitney #1" well is 
to be May 14th, 
2004.

As reported on The Street.com, “Merrill Lynch 
analyst Steven Pfeifer pointed to a possible new catalyst for energy 
stocks.  Pfeifer believes the Street 
has finally come to share his view that energy stocks will continue to benefit 
from high energy prices. [Robert] Howard likes the drillers. . . . Indeed, he 
sees big opportunities across the energy sector.   ‘If oil goes to $40 or $45,’ he 
said, ‘it will be like shooting fish in a barrel.’”

This 
report is for informational purposes only, and is neither a solicitation to buy 
nor an offer to sell securities. Investment in low-priced 
small and micro-cap stocks are considered extremely speculative and may 
result in the loss of some or all of any investment made in these 
companies.  ATN Enterprises, LLC is 
not a registered investment advisor or a broker-dealer. Information, opinions 
and analysis contained herein are based on sources believed to be reliable, but 
no representation, expressed or implied, is made as to its accuracy, 
completeness or correctness. The opinions contained herein reflect our current 
judgment and are subject to change without notice. ATN Enterprises, LLC assumes no responsibility for updating 
the information contained herein regardless of any change in FDEI's financial or operating condition.  As ATN Enterprises, LLC has 
received compensation for this report, and will benefit from any increase in 
share price of the advertised company, there is an 
inherent conflict of interest in our statements and opinions.  ATN 
Enterprises, LLC accepts no liability for any losses arising from an investor’s 
reliance on, or use of, this report.  FDEI will require additional capital to 
realize its business plan and continue as a going concern.  ATN Enterprises, LLC has been hired by a 
third party consultant, and is contracted to receive $27,000 for the publication 
and dissemination of this issue #375.  
ATN Enterprises, LLC and its affiliates or officers may buy hold or sell 
common shares, of mentioned companies, in the open market or in private 
transactions at any time without notice. Certain information included herein is 
forward-looking within the context of the Private Securities Litigation Reform 
Act of 1995, including, but not limited to, statements concerning manufacturing, 
marketing, growth, and expansion.  
The words "may," "would," "will," "expect," 
"estimate," "anticipate," "believe," "intend," and similar expressions and 
variations thereof are intended to identify forward-looking statements. Such 
forward-looking information involves important risks and uncertainties that 
could affect actual results and cause them to differ materially from 
expectations expressed herein.

ATN 
Enterprises, LLC - P.O. Box 2345 - Bonita Springs, FL 34133 

 

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