PARTICLE DRILLING TECHNOLOGIES PROVIDES
OPERATIONAL UPDATE
Houston - June 4, 2007 – Particle Drilling Technologies, Inc. (NASDAQ: PDRT) is
providing an update on its progress to replace the existing frac pump based particle injection
system. While the Company continues to evaluate other replacement options, this update will
focus on progress made on its extruder based injection system.
- Over the last eight weeks, the Company’s research, development and operations
resources have been dedicated to the testing, iterating, fabricating and retesting of the
extruder based injection system.
- The results of testing under conditions that replicate what we have experienced and those
that may be encountered in the field are driving modifications, additional testing and the
timeline for the first field trial with this system.
The Company began an R&D program on the extruder based injection system in early April with
an expectation that a 60 day period would be adequate to evaluate the strengths and weaknesses
of the extruder injector design. Specifically, the Company has been evaluating the extruder’s
ability to continuously inject a metered volume of particles into a variable range of high pressure
in a safe and repeatable manner. The process of understanding test results and making hardware
modifications such that the next logical test can be carried out have been slowed by the time it
takes to fabricate the hardware modifications required for subsequent tests. The extension of the
testing period is primarily related to fabrication delays resulting from today’s overextended
machine shop capacity in Houston and the surrounding areas.
Integral to the extruder based injection system is the diffuser, which reduces pressure between
the rig’s high pressure line and the extruder. In its simplest form, the diffuser is a length of pipe
that, when fully packed with particles, is sufficient to diffuse the majority of gross pressure
typical on oil and gas wells. There are several variables that contribute to the diffuser’s
functionality. These variables are being evaluated in detail to determine the optimum conditions
and to provide a complete understanding of the conditions that should be avoided for safe and
efficient operations.
The Company’s full resources are currently devoted towards developing this system and
therefore management believes that further field testing of the Particle Impact Drilling (“PID”)
system should not be resumed until such time as a new injection system is ready for the field.
The Company has recently been in contact with both of its customers who have expressed
continued interest and patience as the development of the PID system continues to evolve.
While it is too early to accurately forecast the timing for the next field trial, the Company and its
customers are in continuous dialog with all parties sharing the desire to prioritize a quality field
trial rather than rushing to the next available opportunity.
The Company will hold a conference call at 9:00 a.m. Eastern Time on Tuesday, June 5, 2007, to
discuss this operational update and to allow investors the opportunity to ask any further questions
about the Company’s progress. To participate in the call, dial 303-262-2125 and ask for the
Particle Drilling call at least 10 minutes prior to the start time, or access it live over the Internet
by logging onto the web at www.particledrilling.com, on the “Investor Relations” section of the
Company’s website. To listen to the live call on the web, please visit the web site at least fifteen
minutes prior to the call to register, download and install any necessary audio software.
If you cannot listen to the live webcast, an archive will be available shortly after the call for a
period of 90 days on the “Investor Relations” section of the Company’s website. A telephonic
replay of the conference call will be available through June 12, 2007 and may be accessed by
calling 303-590-3000 and using the pass code 11091137.
About Particle Drilling Technologies, Inc.
Particle Drilling Technologies, Inc. (NASDAQ: PDRT) is a development-stage oilfield service
and technology company commercializing its patented and patent-pending Particle Impact
Drilling system. The Company’s technology is designed to enhance the rate-of-penetration
function in the drilling process, particularly in hard-rock environments. It is headquartered in
Houston, Texas. For more information, visit: www.particledrilling.com.
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 capital, if necessary, and its ability to obtain financing on acceptable
terms, if at all, a worldwide downturn in the energy services sector, working capital constraints and other risks
described in PDTI’s filings with the SEC. 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.
Contacts:
J. Chris
Boswell, SVP & CFO Particle Drilling Technologies,
Inc. 713-223-3031 ext. 2085
Ken Dennard, Managing Partner Jack Lascar, Partner
DRG&E / 713-529-6600
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