Particle Drilling Technologies, Inc. (Nasdaq: PDRT) ("Company") today announced that it has completed a successful test of the Particle Impact Drilling (PID) technology and achieved significant results during the longest ever PID run. During this test, the Company drilled a 92 foot interval in seven hours of drilling, whereas the subsequent conventional bits averaged 90 feet in each 24-hour period during the following five days. This trial resulted in a record continuous run for the Company and further validated the merit of the PID technology. The PID system development continues to progress and the operational protocol is becoming routine.
The duration of this test was limited due to issues associated with the Company's injection system that resulted in periodic interruption of PID operations. The Company remains focused on replacing the frac pump injector with a system that is more efficient, more reliable and that requires less intervention and fewer personnel. The Company has a high degree of confidence that it will successfully replace the current injection system in the near future. As previously announced, the Company expects to have the second fully equipped PID system complete and available for operations by January of next year.
Jim Terry, the Company's President and CEO, commented, "The most recent test provides unquestionable proof that the PID technology is indeed a game changing drilling system. We now have direct comparisons in terms of rate of penetration both before and after the PID operation which confirms substantial improvement in drilling performance. With more experience, the rate of penetration is expected to improve as we continue to optimize system components and other parameters. We are looking forward to continued progress on the next well.
"This test was concluded when it became apparent the time required to fully remediate the injector system was not justified. We have developed and are now testing new injector systems to replace the frac pump system, which should eliminate downtime experienced with the current injector."
Two new prototype particle injection systems have been designed, engineered and constructed. Testing continues on the first system which relies on a series of canisters, although it is a prototype and will require further modification before field testing can begin. The second system which relies upon a readily available metal extrusion device is scheduled to be delivered in approximately two weeks. The extrusion injection system would be available for field use should testing in the Company's research facility in Houston prove to be in line with expectations.
About Particle Drilling Technologies, Inc.
PDTI is a development stage oilfield service and technology company owning certain patents and pending patents related to the Particle Impact Drilling technology. PDTI's technology is designed to enhance the rate-of-penetration function in the drilling process, particularly in hard rock drilling environments. PDTI is headquartered in Houston, Texas.
Safe Harbor Statement
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 need to raise equity capital 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.
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