Diversified Oil and Gas Holdings (DVFI)

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krb; hydroslotting profitable...

The Oct 14th PR gives some good info on hydroslotting costs and how long it takes to recover costs. The estimates were given based on $10 NG which was in another PR on Oct 20th. The first NG well they did costs $200,000 to bring online. The next 4 are estimated to be 25% less or $150,000/well and will take 10 - 14 days to bring all 4 online. Based on the $10 NG, they will recover costs in about 30 to 60 days. After that, BIGN gets 40% of revenues. The 5 wells are estimated to generate $10,000/day revenue BIGN. They have 120 NG wells to hydroslot in this lease. The numbers can add up real fast since hydroslotting existing closed in wells is a lot quicker than drilling a new well. The projections that BIGN gives are based on real production numbers from the first well that was brought online in August.

"Biogenerics estimates their breakeven on a $200,000 hydro-slotted re-completion to be in the 30 to 60 day range based on several projects like the recently announced Grimes, CA gas well that flowed 14,400 mcf (1 mcf = 1,000 cubic feet) in its first month. At recent gas prices of $10 per mcf, this well produces approximately $140,000 in cash flow per month, of which 40% or nearly $60,000 per month (after payback of hydro-slotting cash outlay) is realized by Biogenerics after royalty payments and expenses."

I have included the 2 PRs below for reference. This company has a lot of potential IMO and is very PR friendly. I am accumulating now since I do not believe it will go much lower if any. GLTY.

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NEW YORK, Oct. 14, 2005 (PRIMEZONE) -- Biogenerics Limited (Pink Sheets:BIGN),
with its joint venture partner Hydroslotter Corporation, are forecasting a
minimum 120 wells to be slotted in 2006.

The cost of slotting these projected wells weighs in at approximately US$200,000
per well. With economies of scale, we can reduce those costs. Given that the
estimated slotting cost is returned in 30 days, the cash flow outlay to grow is
minimal.

For example: The current Grimes, Calif. well, now in production, is forecasted
to have a life of 5-10 years. Four additional wells are being slotted in
conjunction with the Grimes, each at 5-10 years. The costs and time to slot four
wells is 10 to 14 days and will have a 25% reduction in outsourced service
charges.

We expect each of our five wells to be tied into the same meter site and expect
combined flow at 2,500,000 MCF.

The projected cash flow will cover expenses in 30 days. We then receive net 40%
of the flow after costs are repaid. That would register at US$10,000 per day.

Upon each of the forecasted 120 wells in full production, in conjunction with
alternate wells coming on stream in 2005, we will have a daily cash flow of
US$240,000. Ultimately, these wells will produce US$87,600,000 annually.

For the reason that we are not slotting all available wells, in week one after
costs, we expect US$43,200,000.00 in profits for 2006 from the Hydroslotted
wells.

Our strategy suggests 10 new wells per month in 2006. In 2007 we expect to
double that to 20 wells per month.

Bearing in mind that when dealing with the oil and gas sector, delays may occur,
prices may fluctuate, and thereby management accounted for the risk factor
discounting the guidance by a factor of 35%.

Biogenerics does not forecast earnings from the New Mexico joint venture in this
forecast because it is currently unquantifiable.

CONTACT:
Biogenerics Limited
Investor Relations
Kathy Bassi
[phone]

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October 20, 2005 10:30:10 (ET)


TORONTO, Oct 20, 2005 (PRIMEZONE via COMTEX) -- Biogenerics Limited (Pink Sheets:BIGN) is pleased to announce that it is currently finalizing arrangements, and expects to soon commence trading BIGN in Europe via an exchange listing in the United Kingdom. Biogeneric's Paul Smith stated, "Over the past few months, the Company has developed a strong following among European investors, and we are instituting this dual listing to enable folks in the EU to invest in BIGN more efficiently and to hold positions in their home currencies. Having become accustomed to paying the equivalent of $5 to $6 dollars a gallon for gasoline, Europeans are especially attuned to the looming energy crisis facing the U.S., and see excellent value in burgeoning companies like ours that utilize cutting edge technology to economically extend dormant, shut-in U.S. energy resources."

In addition, Biogeneric's management reiterated the impact of this Tuesday's Press Release whereby Royal Petroleum has agreed to provide traditional debt-based financing for Biogeneric's upcoming schedule of oil and gas re-completion projects. Terms announced for the financing include an 8.5% credit facility to support wellhead completion expenses for hydroslotting, secured by current cash flow of the Company's existing portfolio of producing oil & gas properties. Biogeneric's Paul Smith stated, "This is tremendous news for the company and for our shareholders. The Company already has well over $1 million in reserve cash on its balance sheet to support our current hydroslotting schedule, which we knew was going to allow us to leverage our growth without raising additional equity financing and diluting our capital structure. The credit facility we have now put in place with Royal Petroleum is going to allow the Company to step to the plate with an even more aggressive re-completion schedule on a non-dilutive basis, and provides the catalyst for us to hyper-grow the Company's resource production and income streams. Over the past 6 months, we have been aggressively locating and securing additional dormant energy properties that fit the hydroslotter criteria for re-development. Now that the company has secured an almost inexhaustible 'war chest' to bring the remainder of our existing, as well as target properties into production, our growth will now only be limited by how quickly we are able secure new properties, move hydroslotter equipment to the sites, and commence re-completion operations."

Biogenerics estimates their breakeven on a $200,000 hydro-slotted re-completion to be in the 30 to 60 day range based on several projects like the recently announced Grimes, CA gas well that flowed 14,400 mcf (1 mcf = 1,000 cubic feet) in its first month. At recent gas prices of $10 per mcf, this well produces approximately $140,000 in cash flow per month, of which 40% or nearly $60,000 per month (after payback of hydro-slotting cash outlay) is realized by Biogenerics after royalty payments and expenses.

Prior to the Royal Petroleum announcement, the company's strategy suggested re-completing, and bringing on line 10 new wells per month in 2006. In 2007 the Company expects to double that rate to hydroslotting 20 wells per month.

Based on $10 per mcf gas, and upon each of the forecasted 120 wells completed in 2006 averaging a production rate of 500 mcf/day, in conjunction with alternate wells coming on stream in 2005, the Company is forecasting a daily cash flow run rate of US $240,000 at year-end 2006. This would put the company on an annualized run rate of $87.6 million.

About Biogenerics Limited:

Biogenerics is a diversified investment venture capital firm focused on exploiting and distributing domestic oil and gas reserves. Biogenerics also has joint venture activities with Tyche Energy, Hydroslotter Coporation and WW Energy Inc.

About Hydroslotter Corporation:

Hydroslotter Corporation's, proprietary technology deemed "hydroslotting" increases oil and gas production and extends commercial productivity of oil and gas by 300% to 600%.

Website: http://www.bignltd.com

Forward Looking Statements:

A number of statements contained in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. The actual results of WW Energy Inc. may achieve could differ materially from any forward-looking statements due to such risks and uncertainties, including but not limited to, the fact that no assurance can be given that any proposed acquisitions will be consummated at all.

This news release was distributed by PrimeZone, www.primezone.com

SOURCE: Biogenerics Limited


Biogenerics Limited
Investor Relations
Paul Smith
905-714-9422