Reserves | Production | Organic Growth

Fidelity E & P is a company with a unique combination of assets. Since the origins of the company date back to the 1930s, Fidelity E & P has a strong foundation in long-lived properties that consistently produce stable cash flow. New properties acquired and developed in recent years expand our potential in exciting new ways. Our current combination of properties makes us unique since we have both a strong base of consistent production plus new development potential from exciting and emerging major plays.

Currently, Fidelity E & P's net lease position exceeds 775,000 acres and features over 399,000 of undeveloped net acres and has 1,500 to 2,000 future drilling locations in existing producing fields.

Natural gas and oil production in the year 2006 reached 74 Bcfe and the company's reserve base grew to 701 Bcfe. The company drilled and/or tested 337 wells in 2006.

Management expects this trend to continue with 300 to 350 wells projected to be drilled in 2007. Fidelity operates with an annual capital budget of $282 million for 2007.