On May 10, Particle Drilling (PDTI-$2.74), announced its second quarter results ended March 31, 2007. Reflecting its status as a development-stage oilfield services company, PDTI reported no revenue.
CEO Jim Terry backed away from previous comments that the Company would have ten sets of equipment available for rental by the end of 2007. As of the 2Q:07, PDTI had constructed only two PID units—neither of which was ready for commercialization.
Once again, he understated system failures, instead working to get investors to focus on sequential “performance improvements” of the Company’s PID system in drilling through hard rock:
"This most recent quarter represents another big step forward in the development of our PID technology. Most notably, we demonstrated our best performance to date in a new formation, with a new customer using a newly designed bit—while integrating on a different drilling rig. Overall, the new PID unit performed very well."
A little learning is a dangerous thing. – British poet Alexander Pope (1688 – 1744)
Pulled from PDTI's second quarter 10Q filing: "After conducting four full-scale field trials, [management] finally believes that all components of the PID system are now functioning satisfactorily—with the exception of the frac pump driven injection system. While some minor modifications will be made to the PID bit in order to further improve performance, most of PDTI’s focus is now being directed towards implementation of a new particle injection system. The preferred alternative to the current system is an extruder-based system, which has been purchased and is currently undergoing testing and modification."
The Company expects to make another big leap in PDT when it deploys its new particle-injection system.
As the 10Q Detective posted last month, management’s repeated promulgations of commercialization prospects have been only outmatched by the fact that the Company still has yet to earn a dollar in rig rentals.
The Company has never generated cash flow from operations, and until revenues commence, the Company continues to be highly dependent upon debt and equity funding.
Hope springs eternal in the human breast:
Man never is, but always
To be Blest. – Alexander Pope
Editor David J. Phillips does not hold a financial interest in this company. The 10Q Detective has a Full Disclosure Policy.