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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