Diversified Oil and Gas Holdings (DVFI)

[Imperial Whazoo]

Good, well written post, treepart -


I think one little phrase from the Tyche PR yesterday is the key: land bank.

Land Bank:

What you do is you acquire income producing interests (WI, RI, ORI.... that kind of thing). BIGN/Tyche/WWNG are right on track as regards this. But, there is not a commitment of income stream per se. The way it seems to be being (present pluperfect??) is they deed over a portion of the actual interest to the seller.

Heres my evidence: Check BIGNs press releases to confirm my evidence (http://www.bignltd.com/pressreleases.html). I did a summary list that you can work from (post #17056).

On 11/01/04, BIGN buys 50% of "certain assets" of the
company that eventually changed its name to Tyche. Then, 13 months later, we who owned BIGN wake up in the morning only to get the surprise good news that we now own stock in Tyche. The press release for this was dated 12/13/05 and it contained something interesting that I missed at the time. The ownership of Tyche that BIGN originally bought had declined in the 13 months (without information releases explaining the details, by the way) from 50% originally to 37.5% at the time they spun out 10% to us (reducing BIGNs ownership to 27.5%, by the way).

Well here's some of what what they did as a land bank during those 13 months: they reduced their ownership while increasing their portfolio of aquired assets, to wit:
2005.01.14 - "Biogenerics forms joint venture" (Hydroslotter)
2005.02.15 - "Reports on completion of well site Preparation" (Mosa 6-13-III gas well)
2005.07.26 - Grimes begins
2005.09.19 - "Biogenerics Completes Acquisition of Rubicon Petroleum" (1.95% gross overriding royalty interest in the Talisman Romney horizontal oil well)

And so on, (to see the complete list, check post #17056)

Heres the key piece of evidence, though: Starting with mentions of approximately 4000 acres of undeveloped leased land in the 2005.03.04 PR ("Commencement of petroleum and natural of drilling operations"), they progressively grow their undeveloped leasehold until, in their PR release dated 2005.12.01 (entitled "Biogenerics'JV Partner Tyche Energy Adds State-of-the-Art 'N2Vision' Seismic Data Technology to Ontario Oil Field Project"), they proudly boast that they hold "19,000 plus acres of exploration lands in Ontario and Northeast, BC. to which Tyche currently holds varying working interests."

Now keep in mind that they bought 50% of Tyche in 11/04 and 13 months later they report that they now hold 190000 acres (they started in the 4000 acre range) and they now hold only 37.5% of the original 50%.

This is the business plan of these venture capitalists. this is the rubber meets the road working definition of "Land Bank".

My point is that, until I took the time to break down their PRs from their own web site, it was my impression that cash and dilution and committed income streams from Grimes were major elements of their business plan. They are elements but not nearly as high up on the list as being a land bank. These guys grow theses three companies using Working Interest ownership that they can reduce and commit to other parties as an future revenue, which they cement into a solid promis using N-CO2/hydroslotting/3-D neural network seismic as the glue.

I think, in the present price environment for hydrocarbons, such a business plan is a good one. I think BIGN will succeed. I originally keyed in on BIGN because of Hydroslotting. Coming as I do from an oil & gas background, I almost jumped out of my skin when I first read about hydroslotting. Now I've added a certain fascination with this land bank idea.

Hope this helps and doesn't offend.

That having been said, I think they are all but criminally negligent for deliberately putting out pathetically worded PRs, IMHO. I think they are, to put it mildly, absolute idiots for claiming, on the one hand, that they want to become a name of renown in very short order within the oil & gas industry but they fail to connect with the collosal failures that are painetd all over our daily headlines that describe the enormous cost that result when companies delude themselves into favoring obfuscation, deception, & secrecy above transparency (Hewlett-Packard.... Enron.... need other examples??). Doing deal after deal is a sham excuse for deceiving shareholders, who can generally be counted on to be inclined to be tolerant and godd natured. Well heres where I've come to as regards BIGN: Fool me once... shame on you. Fool me twice.... shame on me.

Imperial Whazoo