MedXLink Corp. Agrees to Acquire Particle Drilling Technologies,
Inc. Early Stage Oilfield Technology Company Plans to Go Public
HOUSTON, Texas, July 14 /PRNewswire-FirstCall/ -- Particle Drilling
Technologies, Inc., a developer of a patented particle impact
drilling technology for use in oil and gas exploration ("Particle
Drilling" or "PDTI"), and MedXLink Corp., (OTC:MXLK) (BULLETIN
BOARD: MXLK) ("MedXLink"), today announced they have signed a
definitive agreement pursuant to which MedXLink will acquire PDTI
in a stock-for-stock transaction. After completion of the merger,
the combined company will be named Particle Drilling Technologies,
Inc. and have approximately 22 million fully diluted shares
outstanding. Prentis B. Tomlinson, a founder of TGS Nopec, Inc. and
a 30 year oil and gas veteran who now serves as the Chairman and
Chief Executive Officer of PDTI stated: "This merger is the next
step in progressing the Particle Drilling business plan as we are
now focused on final testing and commercialization of our
technology. The Particle Drilling technology has the potential to
reduce the cost of drilling for oil and gas with worldwide
applications by decreasing the cost and time required to drill
through hard rock and other difficult to drill formations." PDTI's
patented Particle Impact Drilling system utilizes a specially
designed drill bit fitted with jetting nozzles that serve to
accelerate spherical steel particles ("shot") entrained with
ordinary drilling mud into the path of the drill bit. The system is
operated using hydraulic energy that is readily available on
drilling rigs typically used today. Each particle is driven into
the rock formation at a high velocity and through momentum change,
delivers forces many times greater than the compressional strength
of the rock, even in formations that exist in the subsurface at
elevated hardness and stress. The number of steel shot strikes on
the formation varies with the amount of shot entrained into the mud
system. The Particle Impact Drilling system is expected to entrain,
circulate, and recover steel shot in the mud system without
allowing the shot to circulate through a rig's pumps and surface
equipment. The system is designed as a mobile service that is
expected to be provided to the oil and gas operator as part of the
normal drilling process and is expected to be relatively
transparent to the rig operation. The system is expected to result
in increased bit life, longer footage runs and much higher rates of
penetration (up to 270% faster on one internal test of the
technology) thereby significantly reducing drilling costs and
improving overall economics in the oil and gas drilling industry.
PDTI believes its Particle Impact Drilling system has broad market
application that will significantly reduce drilling costs in the
worldwide drilling market. Pursuant to the Agreement and Plan of
Reorganization, the officers and directors of PDTI will become the
officers and directors of MedXLink upon consummation of the merger.
A brief biography of PDTI's senior management and its Board of
Directors is summarized below. Officers & Directors Prentis B.
Tomlinson, Jr., President, CEO and Chairman of the Board Mr.
Tomlinson has over 30 years of experience in the energy industry,
and is a second-generation oil and gas man who traces his roots
back to Tomlinson Geophysical Service, founded in 1937 by P. B.
Tomlinson, Sr. Mr. Tomlinson has founded a number of companies in
the energy sector, including exploration and production companies,
a crude trading company and another oilfield service company, TGS
Geophysical, Inc., which merged with Nopec in 1997 to form TGS
Nopec (http://www.tgsnopec.com/) (OSE:TGS). Mr. Tomlinson received
a B.S. and M.S. in Geology from Louisiana Polytechnic Institute, a
MTS and MA in Religious Studies from Harvard University, and he is
currently a candidate for a PhD in Religious Studies from Harvard
University. J. Chris Boswell, Senior Vice President, CFO and
Director Mr. Boswell has over 19 years of experience in financial
management focused in the energy industry and began his career at
Arthur Anderson & Co. and later served in management positions
with Price Waterhouse in Houston, Texas. He served as Senior Vice
President and Chief Financial Officer of Petroleum Geo-Services ASA
("PGS") from December 1995 until October 2002. PGS grew from a
small enterprise in 1994 when Mr. Boswell joined the company to a
$1 billion annual revenue enterprise with a peak enterprise value
of $6 billion. Subsequent to Mr. Boswell's departure and following
a change of control within PGS, the new management of PGS filed for
bankruptcy protection in July 2003 in order to restructure PGS's
debt portfolio. The restructuring was successfully completed and
PGS emerged from bankruptcy in October 2003. In all, during his
tenure as CFO at PGS, Mr. Boswell was responsible for financing
over $3 billion of capital expenditures. Additionally during 1995,
Mr. Boswell and other senior executives at PGS developed the
concept to create a unique oil and gas company using a
non-exclusive license in PGS' seismic data library as seed capital.
This company became Spinnaker Exploration Company and now has a
market capitalization in excess of $800 million. Mr. Boswell is a
1984 graduate of the University of Texas at Austin. Thomas E.
Hardisty, Senior Vice President, Corporate Development and Director
Mr. Hardisty has over 19 years experience in the oil and gas
industry and primarily has been responsible for managing the
process of assembling acreage positions over drilling plays,
negotiating exploration and production agreements and land
contracts and for corporate development. Mr. Hardisty has held
several management positions with E&P companies including
PetroCorp Incorporated and Roger A. Soape Inc. and most recently in
senior management positions with Benz Energy Inc. and Shoreline
Partners LLC. Mr. Hardisty graduated from the University of Texas
at Austin in 1984 with a B.B.A. in Petroleum Land Management and is
a member of the American Association of Drilling Engineers, the
American Association of Professional Landmen and the Houston
Association of Professional Landmen ("HAPL") and is former Director
and past Chairman of the Ethics Committee and past Chairman of
Membership of HAPL. Gordon Tibbitts, Vice President of Technology
Mr. Tibbitts has over 30 years of experience in the upstream oil
and gas industry and has 17 years of experience in engineering,
research, and development management. Mr. Tibbitts is former
Director of Research and Development for Hughes Christensen
Company, one of the largest makers of oil and gas drilling bits. At
Hughes Christensen, Mr. Tibbitts was responsible for managing and
directing world-wide research, development, and technical support
through research groups in Houston, Salt Lake City and Tulsa. He
directed and managed the building of a world-class drilling
research laboratory in Houston and a drilling operation in Oklahoma
dedicated to field- testing and development of downhole tools. Mr.
Tibbitts holds over 70 patents related to drilling, coring, and
diamond cutting tools. His work has been published by the Society
of Petroleum Engineers, International Association of Drilling
Contractors, Society of Core Analysts, and the Journal of Petroleum
Technology. He graduated from the University of Utah with a
Bachelors degree in Mechanical Engineering. Ken R. LeSuer, Vice
Chairman & Independent Director Ken R. LeSuer retired in 1999
as Vice Chairman of Halliburton Company. Prior to becoming the Vice
Chairman, Mr. LeSuer served as both the President and CEO of
Halliburton Energy Services and as President and Chairman of
Halliburton Energy Group. He also served as President and CEO of
three Halliburton units during his tenure. Mr. LeSuer began his
career with Halliburton as an engineer-in-training in 1959. From
1965 through 1982, he served in managerial positions in Asia
Pacific and Europe/Africa and was serving as vice president of
Europe/Africa before returning to Duncan, Oklahoma to assume the
position of vice president of International Operations in 1982. Mr.
LeSuer was a member of the Texas A&M University Petroleum
Engineering Industry Board, as well as the TAMU Dwight Look College
of Engineering External Advisory and Development Council. He has
served as Vice President Services Division of the International
Association of Drilling Contractors, and is a member of numerous
petroleum and geological engineering societies, including Society
of Petroleum Engineers, the American Petroleum Institute, the
National Ocean Industries Association, and the Petroleum Equipment
Suppliers Association. Mr. LeSuer received his bachelor's degree in
petroleum engineering from Texas A&M University in 1959. John
D. Schiller, Jr., Independent Director Mr. Schiller recently
resigned from Devon Energy where he was Vice President, Exploration
& Production with responsibility for Devon's Domestic &
International activities. Before joining Devon Energy he was
Executive Vice President, Exploration & Production for Ocean
Energy, Inc. He was responsible for Oceans' worldwide exploration,
production and drilling activities. Mr. Schiller joined Ocean
Energy from Seagull Energy, where he served as Senior Vice
President of Operations before the two companies merged in March of
1999. He joined Seagull Energy from Burlington Resources, where he
served in a variety of operational and management positions over a
period of 14 years, including Production and Engineering Manager
for the Gulf Coast Division. Prior to this assignment, he managed
the corporate acquisition group for Burlington Resources. Mr.
Schiller graduated with honors from Texas A&M University with a
Bachelor of Science in Petroleum Engineering and now serves as
Chairman of the Texas A&M Petroleum Engineering Advisory Board.
He is a member of the Society of Petroleum Engineers, American
Petroleum Institute, American Association of Drilling Engineers and
Houston Producers Forum. Michael S. Mathews, Independent Director
Michael Mathews is managing director of Westgate Capital Co., a
firm he founded in 1993 to identify and structure investment
opportunities on behalf of private investors. Mr. Mathews served on
the Board of Petroleum Geo- Services (PGS) from 1993 until
September 2002. From 1998 to 2002, he served as Vice Chairman of
PGS and held the position as Chairman of the Compensation Committee
and was a member of the Audit Committee. From 1989 to 1992, Mr.
Mathews served as managing director of Bradford Ventures Ltd., a
private investment firm involved in equity investments, including
acquisitions. Prior to 1989, he was president of DNC Capital
Corporation and senior vice president and director of its parent,
DNC America Banking Corp., the US subsidiary of Den Norske Credit
Bank Group, where he directed merchant banking and investment
activity in North America and founded and acted as senior advisor
to Nordic Investors Limited, N.V., a private venture capital fund.
Previously, Mr. Mathews was a Vice President in Corporate Finance
at Smith Barney and prior to that he was an associate with the New
York law firm of White & Case. Mr. Mathews received an A.B.
from Princeton University in 1962 and received a J.D. from the
University of Michigan Law School in 1965. Hugh A. Menown,
Independent Director Mr. Menown has over 23 years experience in
mergers & acquisitions, auditing and managerial finance. Mr.
Menown has worked with Quanta Services, Inc. ("Quanta") as a
consultant or employee in various capacities since July 1999. Mr.
Menown performed due diligence on a number of Quanta's acquisitions
and has served as Chief Financial Officer for two of their
operating companies, most recently North Houston Pole Line, L.P.
located in Houston, Texas. Prior to working with Quanta, Mr. Menown
was a Partner in the Houston office of PricewaterhouseCoopers, LLP
where he led the Transaction Services Practice providing due
diligence, mergers & acquisition advisory and strategic
consulting to numerous clients in various industries. Mr. Menown
also worked in the Business Assurance Practice providing audit and
related services to clients. Mr. Menown is a Certified Public
Accountant. John Pimentel, Director From 1993 to 1996, Mr. Pimentel
served as Deputy Secretary for Transportation for the State of
California where he oversaw a $4.5 billion budget and 28,000
employees including the Department of Transportation, the
California Highway Patrol, and parts of the Department of Motor
Vehicles. From 1998 to 2002, he worked with Bain & Company in
the firm's Private Equity Group, and Bain's general consulting
practice. Since 2002, Mr. Pimentel has been a Director with Cagan
McAfee Capital Partners where he is responsible for business
development, investment structuring, and portfolio company
management. Mr. Pimentel has an MBA from Harvard Business School,
and a BA from University of California at Berkeley. Safe Harbor
Statement 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 need
to raise equity capital and its ability to obtain equity financing
on acceptable terms, if at all, a severe worldwide slowdown in the
energy services sector, working capital constraints, fluctuations
in customer demand and commitments, fluctuation in quarterly
results due to the timing of orders and our capacity to fulfill
them, introduction of new services, commercial acceptance and
viability of new services, cancellations of orders without
penalties, pricing and competition, reliance upon subcontractors,
the ability of PDTI's customers to finance their purchases of
PDTI's services, the timing of new technology and product
introductions, and the risk of early obsolescence. 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. About Particle
Drilling Technologies, Inc. PDTI 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 expected to significantly enhance the
rate-of-penetration function in the drilling process, particularly
in hard rock drilling environments. PDTI intends to develop and
exploit this technology by commercializing the Particle Impact
Drilling system and through a unique contracting strategy. PDTI is
headquartered in Houston, Texas. For further information please
contact: J. Chris Boswell, Chief Financial Officer, Particle
Drilling Technologies, Inc., +1-713-223-3031 ext. 204, ; or
Investor Relations, John Liviakis of Liviakis Financial
Communications, Inc., +1-415-389-4670, , for Particle Drilling
Technologies, Inc. DATASOURCE: MedXLink Corp.; Particle Drilling
Technologies, Inc. CONTACT: J. Chris Boswell, Chief Financial
Officer, Particle Drilling Technologies, Inc., +1-713-223-3031 ext.
204, ; or Investor Relations, John Liviakis of Liviakis Financial
Communications, Inc., +1-415-389-4670, , for Particle Drilling
Technologies, Inc.
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