Diversified Oil and Gas Holdings (DVFI)

[Imperial Whazoo]

Great news Spiras & great thanx for bringing this to everybody's attention.

I have "voluntarily" assumed the roll of "keeper of the assets owned list" based on Press Releases (see my post # 17056), so I'll be updating that to reflect the 27.5% ownership BIGN has in Tyche.

I'll get to that after a day or two because, as of this moment, this particular press release typically confuses as much as it enlightens.

Here are a few of the questions that come to my mind immediately upon reading this horribly worded press release:

1.) How much interest did they actually buy? Given that producing wells typically involve ownership by both royalty owners and operators, it seems absurd to assume that what Tyche is claiming to have done is to have bought both the existing royalty income stream and the existing working interests. (The reason buying out all the royalty owners is unlikely is that there are usually lots of royalty owners and these are often times owned by trusts that involve complex internal ownerships that are hard to quickly negotiate with, so it is simply never the case that buying a well translates to buying both the royalties & the working interests). Thus, in reporting that they have "acquired 8 oil wells", the only logical conclusion that makes sense is that they bought the controlling working interest. This needs to be clarified.

2.) Are these wells unitized? If not, are they in the same field or are they simply spread out in several locations in Oklahoma?

3.) Are they slottable? Are there any plugged & abandoned properties included in this aquisition?

3.) If they bought controlling Working Interests, will Tyche be the operator or will another oil company be the operator? What is the monthly income stream attributable to Tyche (& thus, at a 27.5% rate to BIGN?)

4.) Did the acquisition of these wells include any undeveloped mineral interests?

One interesting detail that needs to be mentioned is that any acquisition by Tyche is an acquisition by BIGN because BIGN owns 27.5% of Tyche (and those of us with restricted shares collectively own 10% of Tyche). So, this acquisition adds SUBSTANTILLY to the asset base of BIGN. Put simply, based on my decyphering (albeit imprecise admittedly) of the PRs on BIGNs web site (again, see my post #17056), the fact is that, as of this press release, BIGN "APPEARS" to today own at a minimum twice as many producing properties as they had when I posted the asset list. Plainly put, this is awesome news. Quite apart from the promised LOI and/or news from Grimes, we have a stronger company now than we did before. Period.

It is absurd that every entity associated with BIGN (Tyche obviously included) seems incapable of generating a press release that is worded well. At the very minimum, this current Tyche news should enthuse BIGN owners, but the fact is that, having read it, it remains unclear whether the 8 properties are actually even producing wells. Based on the wording, everyone is entitled to presume these are income producing properties, but it is not clear from the press release if this is the case.

Oh, and let me point out a clue that tells you a huge amount about the unstated business plan of the venture capitalists who actually own both Tyche & BIGN. These are Leo Lodder's (president of Tyche) exact words: "...the potential it offers to expand our land bank...". The fact is that we have now been told, in no uncertain terms, that Tyche (and presumably BIGN) is a land bank. In essence, what this means is that their business plan is to oblain properties and to maintain only such WI ownership of them as is minimally necessary for them to use the "excess" as a loan base for the obtaining of other assets which, in turn, can also serve as leveraged assets in their "land bank". Pretty key little piece of info, if you ask me.

Anyway, spiras, thanx Thanx THANX!!! Really excellent, man. Thanx!

Imperial Whazoo