Our Company

Diversified Energy Group, Inc. is a privately held energy company that uses a balanced approach in acquiring oil and gas prospects and properties which meet our strict risk to reward guidelines. We utilize advanced 3–D seismic imaging, drilling and completion technologies to systematically evaluate domestic onshore oil and natural gas reserves. We focus our exploration and development activities in provinces where we believe technology and the knowledge of our technical staff can be effectively used to maximize our return on invested capital by reducing drilling risk and enhancing our ability to grow reserves and production volumes.

To complement the parent company Diversified wholly owns Green Machine Solutions, Inc. and Integrated Eco-Systems, Inc. — green companies committed to the vision of developing domestic energy independence through development of renewable technologies.

Our Strategy

Our business strategy is to create value for our shareholders by growing reserves, production volumes and cash flow through exploration and development drilling in areas where we can use technology to generate high rates of return on our invested capital. In addition, through our wholly owned subsidiaries we work with some of the brightest minds in the Green Technology sector. Key elements of our business strategy include:

• Acquire proven producing properties which meet the standards of management and our independent reservoir engineering firm.

• Capitalize on Exploration Successes Through Development of Field Discoveries.

• Evaluate and Selectively Pursue New Potential Play by focusing on our core provinces and trends.

• Hedge our current oil asset base and generate additional revenue.

• Continue to market and sell our Hydro4000 unit.

• Research & development of future Green Technologies.

Our Assets

Our oil & gas assets are currently concentrated in four provinces: South Central Oklahoma, West Texas, South Texas and the Austin Chalk. We regularly evaluate opportunities to expand our activities to other areas that may offer attractive exploration and development potential, with a particular interest in those areas with plays that complement our current production activities.

Proprietary technology assets include our Hydro4000 and Hydro5000, our greenhouse ponds for creating biodiesel from algae and our electric magnetic engine for generating electricity and power electric vehicles.