U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18079 / April 9, 2003

   , 03 CR 33-ALLl (PB) (E.D.Tex.)

   SECURITIES FRAUD PLEA AGREEMENT ENTERED AS TO PRESIDENT AND CHAIRMAN
   OF FIDELITY PETROLEUM CORPORATION

   The Commission announced today that, on March 26, 2003, the United
   States District Court for the Eastern District of Texas accepted a
   plea agreement between Robert R. McClanahan and the United States
   Attorney for the Eastern District of Texas, Matthew D. Orwig.
   McClanahan was the Chairman and president of Fidelity Petroleum
   Corporation ("FPC"). McClanahan pled guilty to a violation of the
   antifraud provisions of the federal securities laws, Section 17(a) of
   the Securities Act of 1933. McClanahan admitted that he falsely
   informed FPC investors that their funds would be pooled with other
   investors who had designated their funds for a similar, specific oil
   project, and that their funds would only be used toward that one
   specific oil project. However, rather than segregate the investor
   funds based on oil project, McClanahan admitted to commingling all
   investor funds into one bank account to be used on several other FPC
   oil projects. Sentencing is scheduled for August 8, 2003. Under the
   statute, McClanahan faces a maximum of five years in prison.

   The Commission previously filed suit against FPC and McClanahan in
   August 2002. The Commission's complaint alleges that between January
   1, 2000 and August 1, 2001, McClanahan and Fidelity conducted an
   unregistered offering of over $4 million in oil and gas securities via
   the use of cold-call telemarketing. Using information supplied by
   McClanahan, Fidelity's telemarketers promised investors that they
   would be able to recoup their initial investment within the first five
   to fifteen months. Furthermore, the defendants falsely represented
   that an investment in Fidelity wells would yield a yearly return of
   between 65% and 113% of the original investment. The defendants had no
   reasonable basis for these projections at the time they made them.
   Furthermore, contrary to the defendants' representations, the yield
   from an investment in Fidelity's commercially productive wells never
   exceeded 20% and was, on some wells, below six percent.

   The Commission charged FPC and McClanahan with securities fraud in
   violation of Section 10(b) of the Securities Exchange Act of 1934, and
   Rule 10b-5 thereunder, and Section 17(a) of the Securities Act. The
   Commission further charged Fidelity and McClanahan with securities
   registration violations pursuant to Sections 5(a) and 5(c) of the
   Securities Act. The Commission seeks an injunction against Fidelity
   and McClanahan to prevent future violations of the above provisions,