Verdisys Commences Drilling Contract with Maxim Energy

Verdisys has commenced drilling under a new term agreement for drilling services with Maxim Energy. Under this agreement, Verdisys will drill multiple laterals to test several separate oil and gas formations in four existing wells located in Okmulgee County, Oklahoma. This contract is expected to utilize one drilling rig continuously for a minimum commitment of thirty days.

"The Maxim contract is Verdisys' first term agreement and may provide significant revenue potential for the life of the contract," said David Adams, President and Co-CEO. "As the results of our recent efforts build, we hope to continue to demonstrate the benefits of radial drilling to producers and further increase our rig activity."

Meanwhile, production levels on the recently completed well in Louisiana has continued to produce 12-15 barrels of oil per day having previously been shut in with no oil production. We believe this further indicates that the application of Verdisys' radial drilling technology can provide oil and gas producers with low-cost production enhancement results.