Diversified Oil and Gas Holdings (DVFI)

[Waverider110]

ISSUE: What do Royal and WW Energy have in common?

More than 32 wells in Ok, I think. Maybe 200 wells in East Texas. Let's look at them:

WW Energy Inc. is a holding company that was created to acquire oil and gas related companies and services. Currently, WW Energy Inc. has two subsidiaries; WW Trucking Inc. and WW Oil & Gas Inc.

WW Trucking Inc. was formed in 1999 as a subsidiary of WW Enterprises Inc. in New Mexico and was subsequently merged with WW Energy Inc.

WW Trucking, Inc. is a leading transport company in the oil field services industry in the four states of Utah, Colorado, New Mexico and Arizona ( The Four Corners Area).

Existing business operations includes transporting fresh production water for oil and gas drilling and exploration and waste water for disposal. The company also provides services for heavy hauling of drill and well equipment needed in the oil and gas production and exploration industry and has several long-term relationships with the majority of oil and gas companies in Western New Mexico, Southern Colorado, Southern Utah, and Northern Arizona.


The company started out with 2 water transport trucks in 1999 and has grown to a fleet of 17 in 2005. Since 2002 the company has boosted revenue by about a half million dollars a year and expects to exceed $3 million in revenue in 2006. The trucking fleet is currently running at full capacity. Plans for future expansion will greatly increase both the revenue and profit potential.
The Corporate headquarters is located in Farmington, New Mexico and houses all the necessary facilities to keep the fleet running 24 hours a day as well as conducting all day-to-day corporate functions. A satellite office is being considered for Southern Colorado which would add several new trucks and significantly increase revenues.

WW Oil & Gas Inc. was formed in 2005 to acquire leases and oil and gas related assets. Such acquisitions are for the purpose of development, exploration, and exploitation.

The first lease, in the San Juan Basin in Northwest New Mexico, has a primary objective of entering the Jurassic Entrada Sandstone. In the late 1970’s, the first oil discovery in the Jurassic Entrada sand dune led to over 2000 miles of seismic data encompassing over 200 + sand dunes in the Entrada. According to Vincelette and Chittum in their AAPG paper entitled “Exploration for Oil Accumulations in the Entrada Sandstone, San Juan Basin, New Mexico”, the first well encountered 24 feet of oil that saturated the Entrada Sandstone, even though it was not located on the top of the dune. The nearest Entrada oil production is 5 miles south in Media field, which has produced more than 1.1 million barrels of oil from an accumulation that covers 160 acres of sand dune. The Gallup Sandstone is also known as an oil bearing zone.

The second and third exploitation projects in the San Juan Basin in Northwest New Mexico will test all the following zones: the Menefee Member of the Mesaverde, the Gallup Sandstone, the fractured Mancos Shale, the Dakota Sandstone, and the Entrada Sandstone at 6000 feet. In the late 1970’s, oil was discovered in the Entrada Sandstone, the Menefee Member of the Mesaverde, the Gallup Sandstone, the Mancos Shale, and the Dakota Sandstone. In the early 1980’s, fractures in the Gallup were discovered when a nearby well was drilled, and it was tested at a flow rate of 320 barrels of oil an hour.

Comprehensive drill programs are being developed for full exploitation of these projects.

The San Juan Basin is in Colorado and New Mexico and is also referred to as part of the Four Corners Area, which includes the San Juan Basin, the Paradox Basin, and the Black Mesa Basin. The San Juan Basin is the third largest gas producing area in the United States. San Juan oil and gas wells generate $325 million annually in federal royalties, half of which goes to New Mexico. ConocoPhillips, Shell Oil, XTO Energy, Encana and British Petroleum are among those companies active in the area.

Farmington, New Mexico, where the headquarters of WW Energy is located, is the service center for the area of northwest New Mexico, southwest Colorado, southeast Utah, and northeast Arizona.

WW Energy Further Clarifies Montana Oil Sands Production Potential
FARMINGTON, N.M., Aug. 14, 2006 (PRIMEZONE) -- WW Energy Inc. (Pink Sheets:WWNG) is pleased to offer the following description of potential oil and gas production from the glauconite sands contained in the Montana property letter of intent, expected to close within sixty days, recently announced.


There is strong evidence that the Lower Cretaceous Glauconite Sand Play, which has been the source for many company-making oil and gas discoveries of Canadian companies operating in Southern Alberta and Saskatchewan, extends into Northwest Montana.

WW Energy, once the letter of intent closes, will have a 41% interest in 420,000 acres on the Montana side of the Canadian border that potentially host glauconite sands, which are primarily oil pay zones with associated gas pay found commonly found in the Mannville and Sunburst Channels. Twenty-two miles away, the Fred and George Creek oil discovery in Montana was made in these oil sands containing fifteen million barrels of oil on five hundred and fifty acres. Drilling is relatively inexpensive due to oil and gas pools generally found at shallow depths.

William B. Hansen, a consulting geologist in Great Falls, Montana, provides the following discussion of the glauconite sands extension from Canada into Montana:

"A correlation across the international border between Canada and the U.S. indicates that the glauconite sand of Southern Alberta extends into northwest Montana. A series of detailed well log correlations has been conducted from prolific producing glauconite fields in Southern Alberta into Glacier County, Montana. It appears that what has historically been called the Sunburst and/or Moulton sands in Montana often (but not always) correlate into the glauconite sands of Alberta. These sands have produced both oil and natural gas from Northwest Montana fields for many decades, but there have been no systematic stratigraphic studies published of the area. Additional detailed subsurface studies should be successful in identifying the channel trends, and in the process should identify numerous gas and oil drilling opportunities at relatively shallow depths."

Of note is that two hundred miles of 2D seismic records are included with the Montana oil and gas lease purchase under the letter of intent, however 3D seismic is needed to properly identify oil sand targets. WW Energy intends to follow the lead of a number of Canadian companies which have recently begun exploration in Montana by employing 3D seismic to identify those targets.

AS to Royal, there is less known. From Pennmon's board on it we have:

This company is an interesting find off the BIGN board. RYLP last three issued pr's mirror BIGN pr's. BIGN is currently in the midst of a number of O&G acquisitions, and RYLP assets mirror an LOI announcement sometime earlier.

Bign is in the midst of trying to swallow a much larger oil company and all hard assets (wells, deep rigs as wells as workover rigs, staff, wells, leases) and perhaps RYLP is the one.

If so, Bign currently at under.02 is due for a pps correction anyday.

At this time its not known if RYLP IS the one BIGN will absorb or be absorbed by, or how the two companies are involved with each other, if indeed they are involved at all. Of note is they both use of hydroslotting and N2Vision. Bign has proprietary rights/use of to N2Vision anywhere in the United States. Currently Bign has two wells in Grimes CA. being hydro slotted and expected to return better 1400 MCF.per day each. Also see Bign pr on NCO2 tech. acquisition.

Most significant of this find is that bign has completed (almost?)but not announced the successful closing of LOI as announced, with Royal Petroleum as target company, or a JV with the target company in Texas. No other details known. You are encouraged to do your own due dilligence and form your own opinions.

http://www.royalpetro.com/home.php

THERE NEEDS TO BE A PR PUBLISHED NEXT WEEK. THIS IS TOO CONFUSING AND PROTRACTED. IF THE COMPANIES DO NOT RELEASE THE TRUTH, THEN INVESTIGATIVE SHAREHOLDERS WILL HAVE TO DO THE DEAL! LET'S SHAKE THEM UP!!!!