Diversified Oil and Gas Holdings (DVFI)

[Fishing at Surfside]

Wave,

From the last PR...

While the primary focus is completing the East Texas Oil Field Joint Venture transaction, the Board of Directors is also giving careful consideration to the following issues:

-- Restructuring the business agreements with Joint Venture partner Hydroslotter Corp., the NC-02 technology and considering alternative well renewal technologies to better serve the companies future requirements both technically and economically.

-- Expansion of current operations in New Mexico and Oklahoma as the company may determine to be viable.

-- Continued re-organizing of the virtual I.R Department providing more accessibility to company business activity while maintaining an open line of communication to shareholders.

-- The Company has received a notification from the Pink Sheets organization regarding new requirements and the Company will endeavor to meet the highest standards for future reporting and compliance.

These decisions will be tailored around the expected conclusion of the East Texas Oil Field Joint Venture transaction.