Diversified Oil and Gas Holdings (DVFI)

[arch_oil]

22M barrels in reserve !!! Plus 8000 bopd production, plus more outlined below wells plus Grimes plus Tubbs plus New Mexico plus Tyche how can we sit here at .02 cents. It's freaking ridiculous.



1) The company can purchase the assets, operations, personnel,
existing mineral leases and existing 250 producing wells
in the East Texas Oil Field.
2) Biogenerics can elect to invest with this company in
150 re-work wells in the East Texas Oil Field.
3) The company can also elect to invest collectively in 12
wells to be drilled in West Texas. This company currently
employs 70 people, has its own rework rigs and drilling
rig, plus several years of experience in oil field
operations and management.

Biogenerics management is gearing up to purchase the entire operations of this company, which includes the wells mentioned in options (2) and (3). If the company's due diligence proves this transaction to be viable, then the result will be that Biogenerics has purchased proven reserves of 10.4 million bbls of oil which has historically graded out at the 42 gravity level, plus the opportunity to prove up and own another 15 million bbls of oil reserves. The daily production of existing wells in the East Texas Oil Field being acquired is estimated at 275 bbls/day. This will be a major step for the company and will place it as a major operator in the oil industry in the State of Texas and surrounding areas.


Lancaster stated, ``This transaction will bring to the company a presence in the oil industry that is highly respected -- an operation with a substantial positive cash flow, ownership in over 200 currently producing wells generating over 7,300 bbls/month of crude oil, leases with an estimated 21.84 million bbls/oil in proven reserves, drilling sites for 12 new wells, with a potential for a substantial reserve position in oil and gas. Further, 125 well sites to rework and capitalize the oil production from in the existing field, and equally important, a fully operating exploration/drilling company with a highly regarded reputation in the industry in Texas which will allow the company to do its own drilling, rework and management of wells.''

The Board of Directors is pleased to announce that the Company has been giving the LOI on the East Texas Oil Field its highest priority. James Lancaster, CEO, reports that the Company is in negotiations with its funding source to complete all due diligence required by them and conclude the funding facility to close these transactions. Biogenerics continues to pursue opportunities for additional properties located in Arkansas, Louisiana and West Texas. These properties encompass over 7,000 acres of leases. Management has also been assured that there are other opportunities in conjunction with the LOI on the East Texas Oil Field, which it will be pursuing at the appropriate times.

The Board of Directors recognizes that the Company is working outside the time frames indicated in the LOI for the East Texas Oil Field; however, the Principals on the LOI are cooperating to allow this transaction to be concluded. Biogenerics management has the closing of the East Texas Oil Field LOI as its top priority.



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