Highlights
- Next field trial with new customer scheduled for April
- Full scale drilling test laboratory complete and operational
- Forty full scale 6 1/2 inch PID bit drilling tests successfully completed
- Reduced cash burn rate
Since the middle of
With the smaller bit size coupled with the ability to remove 100% of the rock with the particles we expect significantly longer bit life. Most of the bit wear from previous designs was the result of the bit being worn by the rock left uncut by the particles. Removing 100% of the rock with particles will eliminate contact of the bit with the formation which is expected to increase bit life and penetration rates.
For less than the cost of performing a single series of tests at the test facility previously used in
"We are excited about the progress we have made thus far to meet our customer's requirements," stated
As previously announced, the Special Committee of the Board of Directors has retained Parks Paton Hoepfl & Brown, LLP to serve as the Special Committee's financial advisor in connection with its evaluation and review of any potential strategic alternatives, including a strategic industry joint venture, technology licensing arrangement, sale of the company and any other available alternatives. We have yet to determine which particular strategic alternative to pursue, if any, and do not intend to disclose developments with respect to this evaluation unless and until the Board of Directors has approved a course of action or otherwise deemed disclosure appropriate.
Particle Drilling Technologies' financial results reflect its status as a development stage company during the first quarter of fiscal 2009 generating no revenue. The following is a summary of the quarterly results:
Three Months Ended December 31, 2008 2007 (Unaudited) (Unaudited) Revenues $- $- Gross profit - - Loss from operations (2,024,816) (3,259,917) Net loss (2,019,782) (3,226,536) Net loss per share - basic and diluted $(0.06) $(0.10)
The Company will hold a conference call at
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
Particle Drilling Technologies, Inc., headquartered in
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.
- tables to follow - PARTICLE DRILLING TECHNOLOGIES, INC. (a development stage enterprise) CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended December 31, 2008 2007 (Unaudited) (Unaudited) Revenues $- $- Operating expenses: Research and development 965,662 1,780,812 General and administrative 1,146,125 1,479,105 Gain on sale of assets (86,971) - Total operating expenses 2,024,816 3,259,917 Loss from operations (2,024,816) (3,259,917) Other income (expenses) Interest income 6,866 35,704 Interest expense (1,832) (2,323) Total other income (expenses) 5,034 33,381 Net loss $(2,019,782) $(3,226,536) Net loss per common share, basic and diluted $(0.06) $(0.10) Weighted average number of common shares outstanding, basic and diluted 34,570,348 31,648,120 PARTICLE DRILLING TECHNOLOGIES, INC. (a development stage enterprise) CONSOLIDATED BALANCE SHEETS December 31, September 30, 2008 2008 (Unaudited) ASSETS Current assets: Cash and cash equivalents $1,167,987 $2,296,143 Prepaid expenses 167,178 260,686 Total current assets 1,335,165 2,556,829 Property, plant & equipment, net 453,823 1,213,918 Intangibles, net 1,655,681 1,552,266 Other assets 41,144 41,144 Total assets $3,485,813 $5,364,157 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $772,014 $850,944 Short-term notes payable 48,542 84,277 Current portion of long-term debt 5,989 8,651 Accrued liabilities 117,608 353,881 Total current liabilities 944,153 1,297,753 Long-term debt 14,310 15,381 Deferred rent 138,029 135,531 Stockholders' equity: Common stock, $.001 par value, 100,000,000 shares authorized, 38,743,435 shares issued and 35,740,349 shares outstanding at December 31, 2008, and 38,767,018 shares issued and 35,763,932 shares outstanding at September 30, 2008 38,744 38,768 Additional paid-in capital 46,711,173 46,217,538 Treasury stock at cost, 3,003,086 shares (1,511,817) (1,511,817) Deficit accumulated during the Development stage (42,848,779) (40,828,997) Total stockholders' equity 2,389,321 3,915,492 Total liabilities and stockholders' equity $3,485,813 $5,364,157 PARTICLE DRILLING TECHNOLOGIES, INC. (a development stage enterprise) CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2008 2007 (Unaudited) (Unaudited) Cash flows from operating activities: Net loss $(2,019,782) $(3,226,536) Adjustments to reconcile net loss to net cash used in operating activities: Gain on sale of assets (86,971) - Depreciation and amortization expense 96,262 166,855 Stock-based employee compensation 493,611 713,958 Changes in operating assets and liabilities: Decrease in note receivable - - (Increase) Decrease in prepaid expenses 93,508 (7,804) Increase (Decrease) in accounts payable (78,930) 67,551 Increase (Decrease) in accrued liabilities (236,273) 437,060 Decrease in other assets - 2,018 Increase in other liabilities 2,498 35,499 Net cash used in operating activities (1,736,077) (1,811,399) Cash flows from investing activities: Payments to purchase property and equipment (76,575) (26,726) Proceeds from the sale of assets 840,000 - Payments to purchase intangibles (116,036) (35,294) Net cash used in investing activities 647,389 (62,020) Cash flows from financing activities: Proceeds from issuance of common stock - 1,200 Repayments of notes payable (39,468) (40,725) Net cash provided by (used in) financing activities (39,468) (39,525) Net increase (decrease) in cash and cash equivalents (1,128,156) (1,912,944) Cash and cash equivalents - beginning of period 2,296,143 4,461,929 Cash and cash equivalents - end of period $1,167,987 $2,548,985
Contacts: Jason D. Davis VP & Interim CFO Particle Drilling Technologies, Inc. 713-223-3031 Jack Lascar / Sheila Stuewe DRG&E / 713-529-6600
SOURCE Particle Drilling Technologies, Inc.