Diversified Oil and Gas Holdings (DVFI)

[Imperial Whazoo]

Hey pennimon -

I think I can state with accuracy the way this program of expansion is being conducted and it does not entail dilution via shares.

Heres what they are doing (the venture capitalists behind BIGN, Tyche, & WW, that is)

They are setting themslves up as a land bank. In fact, they are a land bank. Check this fact out. In 11/04, BIGN originally bought 50% ownership of a company that eventually got renamed Tyche. 13 months later, in 12/05, they announced that they were spinning off 10% of the 37.5% ownership of the company called Tyche to shareholders of record. Key in on the ownership difference: they bought 50% and they reported 13 months later that they held 37.5% ownwership. Go back to my list of asset (post # 17056) and review the increased positions they progressively built in both production and in undeveloped acerage.

This is the MO of these guys, pennimon: they use their ownership of producing assets to buy more by using the future income stream as "money" to do each deal, thus incurring a minimal amount of dilution. In fact, this is exactly the strategy gold mining companies typically employ when they commit to futures on their current gold production, known in that industry as "selling forward contracts".

These guys are diluting the aquired property ownership to leverage purchasing an ever increasing portfolio, thereby pursuing a dream of quickly becoming a "player" in the oil industry.

Also, check out the Tyche press release from today. The phrase "land bank" is the exact wording Tyche's president used to explain the aquisition of the 8 properties.

Imperial Whazoo