"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
"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
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.
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
SOURCE Particle Drilling Technologies, Inc.