SOURCE: Fidelis Energy Inc.

August 07, 2006 09:00 ET

Fidelis Energy's North Franklin Gas Production in July Totals 125.713 MMCF -- New Drilling Program Begins

LOS ANGELES, CA -- (MARKET WIRE) -- August 7, 2006 -- Fidelis Energy Inc. (OTCBB: FDEI) today reports on the July gas production at the North Franklin Project, Sacramento, California. Production from the Company's three (3) gas wells; the "Archer-Whitney #1," "Archer-Wildlands #1"and "Archer-F1" totaled 125.713 MMCF. This was an increase over June production of 120.82 MMCF. The three wells combined averaged a production rate of 4.06 MMCF per day.

The Company is also pleased to report the commencement of drilling operations at North Franklin with the "Archer-Wurster #1" well. Fidelis and partners have now commenced a 2 well drilling program which will target further production from the Winters formation. The new wells will represent the fourth and fifth of a series of production wells that are planned for the North Franklin gas field. The Company will report results from the well when available from the operator.

Notice Regarding Forward-Looking Statements.

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the acquisition of oil and gas reserves, (specifically respecting new drilling and production activities at North Franklin) any near-term production or cash flow and our ability to become cash flow positive in the short term to allow us to re-invest production dollars to enhance and grow company assets. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the numerous inherent uncertainties associated with oil and gas exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2005 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

For more information, please visit our website at, or contact:

Investor Relations 1-888-894-3334 (Contact: William Marshall)


Fidelis Energy Inc.

William Marshall - President

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