Diversified Oil and Gas Holdings (DVFI)

[Joe Burmeister]

Until BIGN executes and follows it up with financials to back up their claim, it is all hype. Just like the 120 wells for 2006 projection back in 2005. Just like the PRs claiming last year that grimes 1, 2 were producing, and 3 and 4 were being worked on. Now we find via email from IR earlier this week that "As per the last press release there were some issues with well#2 that has hindered work on the other wells". I presume there are referring to logistics issues (e.g relationship with hydroslotter), and not physical issues (water, weather, etc.). So now Grimes is on the back burner (another failure on BIGN's part), and the LOIs have taken center stage. Grimes were suppose to be their primary revenue generator, and to be used as collateral for future acquisitions. Now all we have is the income from its JV relationship with WWNG (50%) and Tych (37%). Yet shareholders are left in the dark about the success/failures of these joint ventures. I see no harm in releasing flow rates, projections, revenues from these joint ventures. Just to give the poor shareholders something to nibble on. All they give us is more pie in the sky PRs lacking any details or substance.

Whatever makes you think we will have the lion share of any LOI's concluded? What is your source to back that up? What does BIGN have to justify it getting the lion share of any future JV? RYLP has the financial strength. Why shouldn't they get the majority share? All BIGN has is the shareholder base and a couple of JV. If BIGN was to get the lion share, why did they suddenly dive into the Louisiana LOI? You would think the BIGN will focus entirely on getting the East Texas LOI completed if it's the monster deal they make it out to be?

I am not saying BIGN is a scam, or fraud. There biggest problem is concluding what they started. I am sure the management had good intentions initially in all their endeavors. But the total lack of follow through is what concerns me. Why they released the last PR is beyond me. It did nothing for the PPS. They could have updates the shareholders on so many other things, but they choose to issue another bland PR. What was their motive? To distract the investor community from the ET LOI? I am tired of trying to 2nd guess this managment.