HOUSTON, Aug. 7 /PRNewswire-FirstCall/ -- Particle Drilling Technologies,
Inc. (Nasdaq: PDRT) (the "Company") today announced its financial results for
the quarter ended June 30, 2008.
"Earlier this week, we were contacted by our current customer and informed
that they would like to shift the next field trial from the Deep Bossier area,
which had previously been scheduled to commence in August 2008, to the
Haynesville area in Northwest Louisiana. Although we are excited about the
opportunity to test the particle impact drilling ("PID") system in the
Haynesville area, the customer is drilling with a larger drill bit in this
area and thus a new bit would have to be designed and manufactured to meet
this application. The reasons for this change have not been fully vetted
given the short time frame between receiving this information and release of
the Company's quarterly results," commented Jim B. Terry, President and CEO of
Particle Drilling Technologies. "We have made a rig visit to this new area and
are very pleased with the rig selections. We are currently in discussion with
our customer about ways to expedite the next field trial, including requesting
that the customer allow us to continue to conduct the next field trial in the
Deep Bossier area as originally planned. Should this discussion not get
resolved soon, we are currently in active discussions with another potential
customer about field trial opportunities in another location."
"During the last several months, we have worked hard to prepare our system
for the next field trial in the Deep Bossier," added Mr. Terry. "While we are
disappointed with the sudden and unexpected proposed change in area, we are at
the mercy of our customer's drilling schedule and location preferences as
previously stated. We believe that the fact that our customer is interested
in running our technology in one of the more exciting drilling plays in the
country is a positive, but given that we currently don't have the correct bit
for that application, we will need to defer that opportunity to the future.
In the meantime, we are actively working with our customer to revert back to
the original drilling rig in the Bossier area which should be nearing the
target formation in the next week or so. At this point in time, that
discussion is ongoing."
Particle Drilling Technologies' financial results reflect its status as a
development stage company during the third quarter of fiscal 2008 generating
no revenue. The Company has yet to generate cash flow from operations, and
until revenues commence, the Company is highly dependent upon debt and equity
funding. The following is a summary of the quarterly results:
Three Months Ended Nine Months Ended
June 30, June 30,
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ - $ - $ - $ -
Gross profit - - - -
Loss from operations (2,539,614) (2,470,639) (8,138,869) (8,955,949)
Net loss (2,518,589) (2,390,167) (8,074,199) (8,638,427)
Net loss per share - basic
and diluted $(0.07) $(0.08) $(0.25) $(0.29)
The Company will hold a conference call at 11:00 a.m., Eastern Time, on
Friday August 8, 2008, to discuss its quarterly results and to provide a
further operational update. To participate in the call, dial 303-262-2055 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
http://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 August 22, 2008 and may be accessed by calling
303-590-3000 and using the pass code 11117708.
Particle Drilling Technologies, Inc., headquartered in Houston, Texas, is
a development-stage oilfield service and technology company owning several
patents and pending patents related to its 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 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
Jack Lascar / Sheila Stuewe
DRG&E / 713-529-6600
- tables to follow -
PARTICLE DRILLING TECHNOLOGIES, INC.
(a development stage enterprise)
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
June 30, June 30,
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ - $ - $ - $ -
Operating expenses:
Research and
development 1,373,262 1,289,785 4,700,274 4,994,944
General and
administrative 1,281,100 1,180,854 4,195,064 3,961,005
Impairment of asset - - - -
Gain on sale of assets (114,748) - (756,469) -
Total operating
expenses 2,539,614 2,470,639 8,138,869 8,955,949
Loss from
operations (2,539,614) (2,470,639) (8,138,869) (8,955,949)
Other income (expenses)
Interest income 21,933 81,034 69,440 322,766
Interest expense (908) (562) (4,770) (5,244)
Total other income
(expenses) 21,025 80,472 64,670 317,522
Net loss $(2,518,589) $(2,390,167) $(8,074,199) $(8,638,427)
Net loss per common
share, basic and
diluted $(0.07) $(0.08) $(0.25) $(0.29)
Weighted average number
of common shares
outstanding, basic and
diluted 33,859,053 30,669,301 31,792,851 29,934,127
PARTICLE DRILLING TECHNOLOGIES, INC.
(a development stage enterprise)
CONSOLIDATED BALANCE SHEETS
June 30, September 30,
2008 2007
(Unaudited) Audited
ASSETS
Current assets:
Cash and cash equivalents $4,562,386 $4,461,929
Assets held for sale - 900,000
Prepaid expenses 101,627 233,174
Total current assets 4,664,013 5,595,103
Property, plant & equipment, net 1,313,850 867,168
Intangibles, net 1,437,482 1,312,246
Other assets 41,144 52,562
Total assets $7,456,489 $7,827,079
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $874,816 $1,028,999
Short-term notes payable - 88,258
Current portion of long-term debt 13,205 13,511
Accrued liabilities 854,251 134,988
Total current liabilities 1,742,272 1,265,756
Long-term debt 14,478 24,537
Deferred Rent 127,033 45,539
Stockholders' equity:
Common stock, $.001 par value, 100,000,000
shares authorized, 38,767,018 shares issued
and 35,763,932 shares outstanding at
June 30, 2008, and 34,632,987 shares issued
and 31,629,901 shares outstanding at
September 30, 2007 38,768 34,634
Additional paid-in capital 45,662,012 38,510,488
Treasury stock at cost, 3,003,086 shares (1,511,817) (1,511,817)
Deficit accumulated during the
development stage (38,616,257) (30,542,058)
Total stockholders' equity 5,572,706 6,491,247
Total liabilities and stockholders' equity $7,456,489 $7,827,079
PARTICLE DRILLING TECHNOLOGIES, INC.
(a development stage enterprise)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
June 30,
2008 2007
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net loss $(8,074,199) $(6,248,260)
Adjustments to reconcile net loss to
net cash used in operating activities:
Gain on sale of assets (756,469) -
Depreciation and amortization expense 433,364 362,503
Stock-based employee compensation 2,045,947 1,251,144
Changes in operating assets and liabilities:
Decrease in note receivable - 385,839
Decrease in prepaid expenses 131,547 68,821
Increase (Decrease) in accounts payable (154,183) 625,720
Increase in accrued liabilities 719,263 22,802
Decrease in other assets 11,418 -
Increase in other liabilities 81,494 -
Net cash used in operating activities (5,561,818) (3,531,431)
Cash flows from investing activities:
Payments to purchase property and equipment (37,332) (1,225,524)
Proceeds from sale of property and equipment 851,617 -
Payments to purchase intangibles (163,099) (63,076)
Net cash provided by (used in) investing
activities 651,186 (1,288,600)
Cash flows from financing activities:
Proceeds from issuance of common stock 5,109,712 10,716,951
Repayments of notes payable (98,623) (163,594)
Net cash provided by (used in) financing
activities 5,011,089 10,553,357
Net increase (decrease) in cash and cash
equivalents 100,457 5,733,326
Cash and cash equivalents - beginning of period 4,461,929 2,291,586
Cash and cash equivalents - end of period $4,562,386 $8,024,912
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