Diversified Oil and Gas Holdings (DVFI)

[juxtaposezen]

I just got an email from Skip Taylor. I asked him what he thought about the technology in the slideshow below and how it compared to Hydroslotting. His response is below:

Watch the slide show to see the technology I asked him about here:

http://www.encapgroup.com/slideshow/animation.html

Date: Thu, 29 Jun 2006
From: "Lewis Skip Taylor"
Subject: Re: Hydroslotting

Our technology is completely different from this one. The problem with the tech that is presented here is that it is VERY difficult to send the jet out in a straight line. Radial Jet Drilling and Blast Energy Services also market this technology. People I have worked with have not had good results because the hole created tends to spiral around the wellbore instead of going into the formation, among other problems. The jet concept is very good and we have looked at it but it doesn't offer us the improvements to our technology that we feel we are looking for.