Diversified Oil and Gas Holdings (DVFI)

[Imperial Whazoo]

I've read thru all the posts from last Friday evening till today and think these thought are reevant.

1.) I have been meaning to say this but have omitted doing so thusfar, but I think the Frankfurt exchange thing is a net negative rather than a net poitive for all of us who are US shareholders of BIGN. Here's why I think this: I think that this little pink sheet company has investors with millions upon millions of shares in Germany and other places in Europe who bought vast quantities of restricted shares last summer and before that. Now they want to cash in. The restrictive period has passed and the trading by these European restricted shareholders shares will be made more convenient now that the shares trade on the Frankfurt Exchange. My guess is that the tale of the tape.... of the FRANKFURT tape.... will be very instructive in the upcoming days and weeks.
2.) After reading all the posts, I reinterate my belief that the reason the wells languished in Grimes is related to the LOIs. Lancaster is trying to play a weak hand and his task got exponentially more difficult to succeed at when he fell ill. It weakened his position and he had to take less than desirable terms to obtain an extension till August 31. Evidence of this can be seen by the new-found "hurry" to complete the wells in Grimes and the release of a new WW focused LOI that implies but does not state that hydroslotting will be employed and that commits earnest money and requires that actual recompletion be begun during the period ordinarily devoted to due diligence. When you stand back and look at this and try to see the forest for the trees, I see a picture of a guy (Lancaster) doing the best he can to make lemonade out of some lemons.

Further, I don't think he is criticizable for trying really hard to keep the from having to give up too much future revenue from the Grimes completion as the price he has to pay for completing the August 31 LOIs. In fact, thats exactly what a CEO would be expected to accomplish. And thats the key here: did he wait too long to pull the trigger and is that why there is today so much on the board aboud back-up plans? Is this all just evidence that, as is so often the case in life, the perfect paln is not accomplishable? He had a plan, fell ill, had to scramble, and then ultimately had to give away too much. While we wrestled with whether he should give up too much to the lenderes, time grew short and, ultimately, he ended up trying to thread the needle. Tolerances were too tight and now, the slightest hic-up will delail the wholw deal.

So, the way I see it, I am weighing successful slotting as my measuring stick. I expect the #3 to come in in spades and on time, followed soon after by the #4. I expect the #3 to be in time but the #4 not to be. I think the fall-back position of the WW Texas LOI to be successful, but I don't think that it is going to involve slotting. My reason for this is that there is only one slotting team and they are in California and they are, as evidenced by various press releases, commintted to Grime logistically. If #4 fails to get done in time and the Audgust 31 LOI falls thru and if hydroslotting is required on the new WW Texas deal, hBIGN wll have to scramble and get the team repositions together with all necessare logistics & equipmen. Hence, I doubt the WW Texas deal involves slotting.

Finally, we do not know whether the August 31 LOI requires both #3 and #4 to be completed in order for the LOI not to expire. If the WW LOI for Texas that was just released is a guide, then it appears to be sufficient that work on #4 only needs to be underway to avoid having the August 31 deal fall thru. Lets hope thats the way it is laid out. On the other hand, if the lenders want to see success or they will let the August 31 LOI expire, a failure to complete both #3 & #4 will spell failure for that LOI. If both must be completed and their flows proven, I think we as in heap big doo-doo, kemosabi.

Thats my thought, having reviewed the thoughts of everyone else thusfar.

All my opinions, mind you. Do your own dd yada yada yada etcetera ad nauseum and all that rot

ImperialWhazoo