Diversified Oil and Gas Holdings (DVFI)

[Imperial Whazoo]

I have spent a lot of time today reviewing the following three press releases:
a.) http://biz.yahoo.com/pz/060803/103236.html
b.) http://biz.yahoo.com/pz/060804/103300.html
c.) http://biz.yahoo.com/pz/060816/103947.html
It is not plainly stated that the properties will be slotted. From (a.) it is clear that they involve a well that was producing 2444 mcf/month when plugged & abandoned in 1977. From (c.) it is stated that the work to be done is recompletion work that is to be undertaken by WW Oil & Gas (50% owned by BIGN, right??), is to commence WITHIN THE DUE DILIGENCE PERIOD of the LOI... ie, prior to the LOI being finalized by either expirtion or acceptance.
So, lets stand back and group the facts into sets: we know the wells involved had substantial production when P&a in 1977 and that they are to be recompleted by BIGN's partially owned WW Oil during the due diligence period of the LOI. We know that WW paid earnest money as part of the LOI but we do not know if Success is paying the expense of the recompletion or whether the recompletion work being done during the due diligence period as a type of payment of earnest money. We do not know if the success of the recompletion work is a condition of the acceptance of the LOI. We do not know even whether the well is going to be hydroslotted or whether the recompletion involves some other recompletion technologies.

One thing we do know is that the hydroslotting team is in Grimes California committed to completing wells #3 & #4. And, in that there is only a single trained team proficient in hydroslotting, we also know that this self-evidently adds legitimacy to a speculation that the well that is the subject of these 3 (above) press releases is likely not going to be hydroslotted by the same team that is committed to the west coast recompletions.

More on this as I mull it over.

Anyone else have any thoughts on it?

Imperial Whazoo