Diversified Oil and Gas Holdings (DVFI)

[rldurbin]

Waverider, good point about NG. NG, unlike crude, has already had 2/3 of its price chopped off in the lasy year. NG inventories are higher now than last year and I don't expect that much of an increase in price. Last year's NG price move was a blowoff top.

One thing I am curious about though. The properties in the E Texas LOI have significant crude production and I think crude has topped for the cycle and the baseline for the next year will be in the 50s and low 60s. If the LOI(s) are in indeed consummated I hope they don't pay too high a price based on projections of $70+/bbl crude prices. I hope a crude price drop somehow gets reflected in the final price.