Strong Buy Signal
4th week — August 2005


Fellows Energy:
for America

Fellows Energy (FLWE) could be the NEXT $1 Billion Oil & Gas Stock

  FLWE’s oil and gas projects cover a combined area of more than 500,000 gross acres in the U.S. Rocky Mountain area – a region estimated to contain one-third to one-half of America’s recoverable reserves of coalbed methane gas

Yet amazingly... YOU can still buy FLWE Below a Dollar a Share!

“In my lengthy career of uncovering small-cap profit stocks, I have never been more excited about a company’s prospects for immediate and longterm success. Fellows Energy has the properties, the operating expertise, and the kind of intelligent growth strategy that should enable the company to rapidly expand cash flow while building immense shareholder value.”

— Michael Fagan, Editor

Sky-high energy prices and their indicatory uptrends reveal that oil and gas stocks will outperform every other stock market segment for the next several years.

According to a recent report by Goldman Sachs, “Super spike period may be upon us: Sector attractive. We believe oil markets may have entered the early stages of a super spike period, which we now think can drive oil prices toward $105/bbl. We see as much as 80% upside to super spike peak values and reiterate our Attractive coverage view.”

As an astute investor, it is imperative that your portfolio be immediately adjusted to include proper exposure to this MAJOR stock market trend.

Here’s the great news. I have just uncovered what I believe is the next small-cap oil and gas stock to IMMEDIATELY DOUBLE …and later blast through ANOTHER DOUBLE AGAIN FOR OUTSTANDING investment returns. The company…

Natural Gas Bull Market:

Fellows Energy provides awesome leverage to the price of natural gas. Buy FLWE NOW to profit from the energy sector uptrend!

Fellows Energy Ltd. (FLWE - OTCBB)

Fellows Energy is my #1 pick from the small-cap oil and gas sector. And, unlike the myriad of pretenders, Fellows now reports interests in over 500,000 acres of oil, gas, and coalbed methane rights in Utah , Colorado , Wyoming , and Montana .

The real excitement is about to begin as Fellows Energy commences phase-one drilling on its four major oil and gas projects in the Rocky Mountain region of the United States . Positive results could easily send the value of this company upward by a factor of 1,000%.

Translation: THERE ARE TRILLIONS OF DOLLARS in oil and gas wealth throughout this vast region of the American West. And best of all, Fellows Energy (FLWE - OTCBB) has quickly established the pole position.

My near-term projection: Your FLWE shares will rise from under $1 to over $5 within the next 12 months

Here’s just one reason why Fellows Energy is so compelling: We stand to profit REGARDLESS of whether energy prices move up or down. Why?

Because the company is sitting smack-dab in the middle of the hottest oil and gas exploration region in North America - and it’s only getting hotter.

You probably know the saying, “If you’re looking for elephants, go to elephant country.”

It’s a simple yet highly effective mantra for finding untapped resources of oil and natural gas. In essence, the best place to find a hidden oil and gas resource is right next door to a producing field.

You see, massive oil and gas reserves usually occur in expansive geological formations that have the ability to support thousands upon thousands of producing wells.

This is important! The Rocky Mountain states of Utah , Wyoming , Colorado , New Mexico , and Montana hold an estimated one-third to one-half of America ’s total recoverable reserves of coalbed methane natural gas. We’re talking about a MASSIVE, under-developed energy resource right here in the U.S.A.

And everywhere you look in this vast region of energy production, Fellows Energy is surrounded by oil and gas prospects with combined potential value in the BILLIONS of dollars.

Fellows Energy, with its unmatched level of expertise in the area, is literally just a few drill-turns from the next major discovery. I believe that those who hesitate now will be pursuing FLWE shares at much higher levels in the very near future.

This region holds an estimated 346 TRILLION cubic feet of recoverable natural gas reserves. In terms of energy content, those reserves are equivalent to 62 BILLION barrels of crude oil or nearly four times what petroleum geologists believe could be squeezed out of Alaska ’s Arctic National Wildlife Refuge (ANWR).

In fact, the Powder River Basin of Wyoming alone holds an estimated 75 TRILLION cubic feet of pure methane gas and produces around 1 billion cubic feet of gas every day!

No doubt you’ve heard of companies like Burlington Resources (BR-NYSE) and Devon Energy (DVN-NYSE). We’re talking about a combined market capitalization of over $47 BILLION.

These two companies sit atop the energy industry…and guess what?

They both have expanding oil and gas interests in the Rocky Mountain region and both are certainly looking at companies like Fellows Energy. Why?

Answer: Fellows Energy has secured several key oil and gas prospects in this highly prolific energy producing region!

Surprisingly, the U.S. Rocky Mountain region is just now being tapped for America ’s current and future energy needs. That’s because technological advancements in well-completion and recovery techniques have only recently begun to unlock the secrets of profitably exploiting these vast coalbed methane (CBM) natural gas reserves.

It’s easy to see why elite energy companies are descending upon this expansive energy resource located right here in our own backyard. Oil and gas companies from around the globe are vying not only for the best projects, but any project - it’s that hot!

Action Alert: Fellows Energy Holds the Key Development Position — Early FLWE Shareholders Could See Their Share-Value Increase by 1000%

I am telling you to buy Fellows Energy at this early development stage. The bottom line is this: To be in position for the largest shareholder gains, you must act NOW while FLWE shares are still trading below the $1 level.

I expect this current window of opportunity to be extremely brief. Buy shares in Fellows Energy now!

Fellows Energy boasts what I believe is an unequaled level of natural gas exploration and development expertise in the junior resource sector. The company’s operating team is already credited with bringing more than 1,100 natural gas wells into production…which have produced more than $400 Million in revenues.

Understanding this simple fact could make you rich: Some of the most prolific natural gas properties in the U.S. Rocky Mountain region are within geological spitting distance of FLWE’s projects. And keep in mind that this is a neighborhood worth $TRILLIONS!

The estimated wealth of FLWE’s properties is…in a word…HUGE.

I project that an interest-frenzy will soon develop as Wall Street institutions rush to out-bid each other in a desperate attempt to buy shares in FLWE. The result, of course, will be a monumental win for early Fellows Energy shareholders.

Rocky Mountain CBM: The “Big-Money” Players Are Moving In

The excitement is brewing because THE GAS IS THERE…and Fellows Energy is in the driver’s seat for the next world-class discovery.

The heavyweights of the oil and gas industry have been aggressively positioning themselves in key areas of the Rocky Mountain CBM region in pursuit of the next multi-billion dollar coalbed methane gas discovery. Any worthy energy analyst would agree that such massive natural gas discoveries are inevitable.

When the world’s top energy companies caught wind of the enormous natural gas production potential in the region, including several world-class discoveries, some of them went on a “buying spree” – snapping up oil and gas prospects throughout the region.

Industry leaders like Devon Energy and Burlington Resources have expanded their presence in the region some taking interests in oil and gas projects of junior exploration companies.

What does that mean? Now is the time to buy Fellows Energy…BEFORE the company begins attracting MASSIVE MARKET ATTENTION!

Keep in mind that as area-plays develop, the major companies infuse enormous amounts of working capital into the development area. The end result is huge share-value increases for companies in the region as investors scurry to be in position for profits as additional world-class discoveries are announced.

And the next $Billion discovery may well go to Fellows Energy. In fact, in its very first hole of phase-one drilling on its Overthrust project, the Fellows team hit “pay-dirt” with what could be a vast, economically recoverable CBM resource. The Fellows team believes this project holds large-scale coalbed methane potential and is moving full speed to further define the resource.

At a rate of success rarely seen in the junior resource sector, Fellows Energy has beat a number of major energy companies to the punch by securing over 500,000 acres of high-potential oil and gas prospects in the U.S. Rocky Mountain region. And yes, all of this was accomplished in a matter of months. Just imagine what FLWE’s land position is going to look like this time next year!

Fellows has already secured a number of “fairway-tracts of land,” and when the final numbers are compiled, the company may be holding an oil and gas prize that will send its share price soaring.

Top Priority Buy: Astute investors are buying shares in Fellows Energy (FLWE - OTCBB) now, before the broad market buying frenzy sends the stock into orbit. This is the one profit opportunity you do not want to miss!

America ’s Natural Gas Crisis …and How FLWE Could Make You RICH!

The market for natural gas has changed dramatically over the last several years. After an extended period of extremely low prices for this clean-burning energy source, the price of natural gas has jumped by more than 250% from a low of $2 Mcf (per thousand cubic feet) in 2000 to current price levels around $7 Mcf.

An Expansive Exploration Program Is Imminent...And so is a MAJOR Share-Price Jump

Fellows Energy is pursuing a longterm growth strategy based on the aggressive acquisition/development of high-potential oil and gas prospects with a particular focus on coalbed methane (CBM) production in the U.S. Rocky Mountain region. With more than 1,100 CBM wells of experience to draw upon, the Fellows team has everything in place to build expansive shareholder value.

Overthrust Project
Location: Utah and Wyoming
Area: 183,000 gross acres
Target: Coalbed methane

Carter Creek Project
Location: Wyoming
Area: 19,290 acres
Target: Oil

Weston County Project
Location: Wyoming
Area: 10,678 acres
Target: Oil

Gordon Creek Project
Location: Utah
Area: 5,242 acres
Target: Natural gas, coalbed methane

Demand for natural gas in the United States has risen steadily over the last several years, driven primarily by large increases in its use in electric power generation and residential and commercial heating/cooling. For example, the U.S. Department of Energy (DOE) now projects that 900 of the next 1,000 power plants in the U.S. will run on clean-burning natural gas.

U.S. demand for natural gas currently stands at approximately 23 Tcf (trillion cubic feet) per year and is increasing at a rate of over 2 percent annually. Based on those figures, the U.S. Energy Information Administration (EIA) projects that U.S. demand will reach 34 Tcf by 2020. That’s nearly a 50 percent demand-increase in just 15 years!

Domestic production, on the other hand, currently stands at only 19 Tcf per year…resulting in an annual natural gas shortfall of around 4 TRILLION CUBIC FEET!

Of course, the key factor that has kept natural gas prices from blasting through the $10 Mcf level has been America ’s ability to meet its 17%+ demand gap by way of natural gas imports from Canada . Today, however, because of declining natural gas production levels in both the U.S. & Canada , that former safety net now has a major hole right through its center.

So where will this 4 trillion-plus cubic feet of natural gas come from? And what about America ’s desperate oil situation?

What does the Goldman Sachs report say? It is not the Middle East , Russia , and Venezuela regions controlled by authoritarian regimes of dubious character; “a large portion of these resources are effectively off-limits to Western investment” according to Goldman Sachs.

The solution is more investment in additional exploration and development right here in the United States .

The March 30 Goldman Sachs report suggests that it’s not that the world is running out – it’s that investment is the key. And it’s happening now! An investment in a North American protected oil and gas supply is an investment in U.S. stability and helps offset our heavy dependence on overseas supply.

Invest in America ’s energy future today. Buy Fellows Energy (FLWE - OTCBB) Now!

4 GIANT reasons why FLWE could skyrocket by 1,000% in just 24 months!

1   
FLWE’S ENORMOUS POTENTIAL:
FLWE’s oil and gas interests cover a combined area of more than 500,000 gross acres in the U.S. Rocky Mountain area – a region estimated to contain one-third to one-half of America ’s recoverable reserves of coalbed methane. Amazingly, the top five natural gas discoveries of the 1990s were all found in this area. FLWE’s Overthrust project alone could hold as much as 1 TRILLION cubic feet of coalbed methane gas!
2   
1,100 WELLS COMPLETED:
The FLWE operating team is comprised of seasoned professionals with literally decades of experience drilling for coalbed methane gas. The Fellows team has drilled and completed more than 1,100 CBM wells throughout the American West, which have produced more than $400 million in revenues. This unmatched level of expertise greatly increases FLWE’s prospects for long-term success.
3   
UNIQUE EXTRACTION TECHNOLOGY:
FLWE is utilizing state-of-the-art drilling and extraction technologies to produce pure methane gas, which is usually trapped under immense hydrostatic pressure. As a result of vastly improved drilling techniques and reduced exploration and development costs, FLWE’s coalbed methane projects are poised to provide early investors with a steady stream of profits... for YEARS to come.
4   
GROUND-FLOOR
OPPORTUNITY : Right now, you can buy FLWE below the $1 level. Fellows Energy is a fast emerging company comprised of industry experts who, in rapid fashion, have secured an expansive land position in the oil and gas-rich U.S. Rocky Mountain region. I expect the FLWE share price to double within weeks…and then move multiples higher over the next 12 to 24 months as the company rapidly evolves into a mid-tier U.S. energy producer.

Just Days Away From The Pending Payoff!

Astute investors are purchasing Fellows Energy (FLWE - OTCBB) right now BEFORE the next round of drilling results are released!

This is THE ONE oil and gas profit opportunity you do not want to miss!

You may never see another energy stock of such massive profit potential. Your window of opportunity is very limited...I expect to see FLWE shares extremely active in the very near-term as phase-one drilling heats up.

Expect to be counting your profits as Wall Street and the “investing herd” propel your FLWE share-value exponentially higher.

IMPORTANT: Remember to take partial profits when the FLWE share price surges ahead. Then, let the remainder of your position ride the wave of Wall Street buying to MUCH HIGHER LEVELS.

Pick up the phone and call your broker now. Or better yet, go online and purchase your shares through your discount brokerage.

Michael Fagan
Editor, The Fagan Report

P.S. - For more information on Fellows Energy (FLWE - OTCBB) and to receive a corporate information package, please dial the company’s investor relations department at 303-327-1525.

The Fagan Report
1155 Camino Del Mar, No. 468 • Del Mar, CA 92014

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