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Particle Drilling Technologies Announces Contract With One of North America's Largest Independent Oil & Gas Companies

Posted on: Tuesday, 30 January 2007, 18:04 CST

HOUSTON, Jan. 30 /PRNewswire-FirstCall/ -- Particle Drilling Technologies, Inc. ("PDTI" or "Company") today announced that it has entered into a one year agreement with a multi-national independent exploration & production company (the "Operator"). The Operator currently ranks among the top five companies in the U.S. in terms of domestic onshore drilling and development activity.

Pursuant to this agreement, PDTI will provide its patented Particle Impact Drilling ("PID") services in connection with the Operator's drilling program in East Texas with the initial PID operations expected to commence during the first calendar quarter of 2007. The agreement anticipates that PID services will be conducted on an initial four wells and provides the basis for additional wells and cooperation between PDTI and Operator with respect to financing and preferred access to additional PID systems in the future. The compensation under this agreement, if any, is based on the Company's performance pursuant to a gain-sharing formula. At the Operator's request, its name is being withheld at this time and additional details of the contract remain confidential.

Jim Terry, PDTI's President and Chief Executive Officer stated, "We are excited about the opportunity to demonstrate the potential of the PID technology with one of the country's largest E&P companies. The target drilling applications are located within hours of PDTI's research center in Houston thus improving the logistics for each PID operation. This contract and our recently signed contract with our original customer provides ample opportunity to further demonstrate the PID technology in different geological intervals with the support of committed customers."

Particle Drilling Technologies, Inc., headquartered in Houston, Texas, is a development stage oilfield service and technology company owning certain patents and pending patents related to the 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 equity capital, if necessary, and its ability to obtain equity financing on acceptable terms, if at all, a severe worldwide slowdown in the energy services sector and working capital constraints. 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 ext. 2085 Ken Dennard, Managing Partner Jack Lascar, Partner DRG&E / 713-529-6600

Particle Drilling Technologies, Inc.

CONTACT: J. Chris Boswell, SVP & CFO of Particle Drilling Technologies,Inc., +1-713-223-3031 ext. 2085; or Ken Dennard, Managing Partner, or JackLascar, Partner, both of DRG&E, +1-713-529-6600, for Particle DrillingTechnologies, Inc.

Source: PRNewswire-FirstCall

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