Particle Drilling Technologies, Inc. Announces Results of Its Initial Testing Program at GTI - Catoosa

HOUSTON, Aug. 3 /PRNewswire-FirstCall/ -- Particle Drilling Technologies, Inc. (Nasdaq: PDRT) today announced that on Friday, July 29, 2005 it completed its initial field tests for its particle impact drilling system ("PID system") at the Gas Technology Institutes' Catoosa facility outside of Tulsa, Oklahoma ("Catoosa" see: http://www.gticatoosa.com/).

Over the two week period from July 18 through 29, 2005, PDTI tested and evaluated the PID System at Catoosa. The test included an assessment of drilling rates through hard and abrasive formations and softer sandstone and shale intervals; an evaluation of operational methods associated with injecting and recovering steel shot; and an appraisal of the handling of the shot material on a well location.

John D. Schiller, Jr., PDTI's interim CEO stated: "Overall, we are pleased with the results of our test program at Catoosa. We were able to identify several operational areas that need improvement and are now making modifications to the PID System to upgrade its operational efficiencies. We are encouraged by the drilling power of the PID System when it is properly engaged, yet we recognize that work remains to be done in order to develop consistent performance of the system."

The rates of penetration observed while drilling with the PID System met the Company's expectations for commercial applications. The PID System drilled at high rates through the hard limestone intervals that are characteristic of PDTI's target market. Further, the PID drill bits performed very well and showed minor wear to bit cutters and nozzles, which indicated good durability.

This test allowed the Company to review numerous operational scenarios associated with surface and downhole conditions. Operational difficulties encountered were primarily related to the existing shot injector system and the unique layout of the Catoosa test site, which in some respects affected Company's ability to optimize testing. Problems encountered and evaluated included leaking connections, bit plugging with foreign material and excessive circulating time. These problems resulted in the system being shut down numerous times and thereby reducing the actual time spent drilling.

The Company believes that the operational difficulties related to both the PDTI equipment and the Catoosa test site can be addressed and largely resolved before commencing a second round of testing at Catoosa. PDTI is currently scheduled to return to Catoosa during late October or early November of this year in order to further refine and develop the PID System. In the interim, PDTI will continue to have discussions with potential customers regarding the commercial deployment of the system.

The Company will hold a conference call at 10:00 a.m. Eastern time on Friday, August 12, 2005 to discuss its quarterly results and to provide an operational update. The dial in number for this call is 303-205-0033. A telephonic replay of the conference call will be available through August 19, 2005 and may be accessed by calling 303-590-3000 and using the passcode 11036956.

Particle Drilling Technologies, Inc., headquartered in Houston, Texas, is a development stage oilfield service and technology company owning certain patents and pending patents related to the Particle Impact Drilling technology. The company's technology is designed to enhance the rate-of- penetration function in the drilling process, particularly in hard rock drilling environments.

Certain statements in this press release that are not historical but are forward-looking are subject to known and unknown risks and uncertainties, which may cause PDTI's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, PDTI's ability to raise equity capital, if necessary and its ability to obtain equity financing on acceptable terms, if at all, a severe worldwide slowdown in the energy services sector and working capital constraints. Further, PDTI is a development stage company that operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond PDTI's control such as announcements by competitors and service providers.