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

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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