New Particle Injection System Hopes to Enhance Commercial Production

Particle Drilling Technologies, Inc. has completed the first phase of its in-house test program for the new particle injection system with good results. The testing confirmed that the automated system operates as designed as a mechanical means to continuously inject particles into drilling fluid at the rates needed for commercial use. The next phase of this test program will focus on endurance testing of the system, including testing under variable conditions and to refine processes and procedures for operating and maintaining this newly designed equipment.

In prior field tests, the hydraulic particle injection system had difficulty maintaining a continuous flow of particles to the drill bit under high and fluctuating well pressures. The extruder based particle injection system relies upon a volumetric feeder and is unaffected by well pressure which will substantially improve performance and broaden the operating range.

In connection with the progress noted above, the Company has extended the contract with its customer that is drilling in east Texas. Currently, we are working with this customer to plan the next commercial trial. More details about timing of this trial will be shared during Company's next quarterly conference call during the first week of February.

"After having tested several prototype injection concepts, the new 'extruder-based' particle injection system was engineered, designed and fully assembled during the last four months. The equipment has been designed such that it has complete and integral operational redundancy built for and complies with oilfield standards for operational integrity and safety. Now that we have had an opportunity to test the essential elements, we have begun planning the next commercial trial and are very excited about taking the next step towards commercializing particle impact drilling," said Jim Terry, president and chief executive officer, Particle Drilling Technologies. "I credit our engineering and operations team for the successful particle injection development. Their focus, talent and hard work allowed us to accomplish another significant milestone in the advancement of this exciting technology."