Particle Drilling Technologies, Inc. NASDAQ: PDRT www.particledrilling.com

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Investor Presentation Jim B. Terry President and
CEO
April 2008Particle Drilling Technologies,
Inc.(NASDAQ PDRT)www.particledrilling.com
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Cautionary Statement
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS   This Presentation contains
forward-looking statements. These statements are
subject to a number of risks and uncertainties,
many of which are beyond our control. All
statements other than statements of historical
facts included in this Presentation, including
those regarding our strategy, future operations,
financial position, estimated revenues, projected
costs, projections, prospects, plans and
objectives of management, are forward-looking
statements. When used in this Presentation, the
words believes, anticipates, plans,
expects, intends, estimates or similar
expressions are intended to identify
forward-looking statements, although not all
forward-looking statements contain such
identifying words. All forward-looking
statements speak only as of the date of this
Presentation. The Company does not undertake any
obligation to update or revise publicly any
forward-looking statements, whether as a result
of new information, future events or otherwise.
Although we believe that our plans, intentions
and expectations reflected in or suggested by the
forward-looking statements we make in this
Presentation are reasonable, we can give no
assurance that such plans, intentions or
expectations will be achieved. You should read
carefully the factors described in Risk Factors
for a description of certain risks that could,
among other things, cause actual results to
differ from these forward-looking statements.
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Who we are

• Oilfield service company with patented,
  step-change technology
• Completed four commercial trials in Utah and
  Texas
• One operating contract and three MSAs secured
• Plug and play service provided directly to oil
  and gas company
• Enabling technology that will dramatically reduce
  the cost of drilling the most expensive interval
  of and oil or gas well
• Highly experienced team of oilfield professionals
  with proven track record

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Hard Rock Drilling Economics 101
The harder the rock, the slower it drills The
slower it drills, the more the well costs
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Market Intelligence Report by Warlick
International

• Warlick is a market research firm specializing in
  oilfield service and with a great deal of
  background in drill bits. Other Warlick customers
  include
• Reed Hycalog (Grant Prideco)
• Smith International
• Security DBS (Halliburton)
• In May, 2007, Particle contracted Warlick to
  conduct a market survey, results
• of which included only a narrow sample of
  Particles target market limited to
• A select few operators
• Eight (8) specific drilling plays, located in
• Twelve (12) counties
• Five (5) states
• Result 300 million market opportunity
• (assuming full market penetration)

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Very Limited Scope of The Warlick Survey
(circled areas)
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Market Ramp
We Are Here
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Customer Savings Generate Large Returns for PDRT
PDRT share of gain generated - 252,000 (50
of the total savings) PDRT effective dayrate -
42,000/day
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Review of Potential EBITDA Margins Per Annum
Assumes Two Wells Per Month
Revenue per PID Unit

6,048,000 Estimated cash cost of services,
including bits
2,400,000 EBITDA Margin (before
royalties) - 60
3,648,000 Royalties


923,136 EBITDA Margin (after royalties) - 45

2,724,864 Capital Cost of PID System

800,000 Payback Period

3.5 months
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Our Solution The Particle Impact Drilling PID
System

• Patented technology, step-change in performance
• Field tests proved the PID System drills hard
  rock at 3 to better than 6 times faster than
  conventional methods

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Rate of Penetration (ROP) Made Simple

• Depth of Cut Times Bit Rotations Per Minute (RPM)
  ROP

Mill Tooth
PDC Cutter
Carbide Insert
Natural Diamond
Impregnated Diamond
Depth Of Cut
Depth of cut into formation
Soft Medium Hard Very
Hard
Formation Hardness
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Hardened Steel Particles Do the Real Work

• Conventional drill bits require high mechanical
  forces to crush and grind the hard rock away
• The PID System removes hard rock by blasting it
  away with readily available hydraulic force and
  small hardened steel particles entrained in the
  drilling fluid
• These steel particles accelerate through the PID
  bit nozzles
• Impacting the hard rock over 4 Million times per
  minute at 500 ft/sec as compared to roughly 540
  impacts per minute for a conventional drill bit
• Contact stress occurs over a smaller contact area
  yielding roughly 830,000 psi of contact stress
  vs. 60,000 psi of contact stress with a
  conventional bit
• The volume of steel particles required is very
  small at only 2-3 of total fluid volume

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PID Drill Bit Demonstration of Cutting Process
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Improved Particle Recovery and Storage Unit Used
March 2007 Trial
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Particle Drilling Commercial Field Trial Summary

• Increasing footage/day with each test
• Improving efficiency with each test
• On bottom time increasing
• Solving problems as they arise
• Identifying improvement areas
• Refining procedures
• Adding automation

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Chronology of New Particle Injection System
Order long lead maintenance items and schedule
next trial
Modify and upgrade horsepower as necessary
Assemble field unit begin in-house testing
Design field unit and order components
Success-fully test pressure barrier to allow for
continuous cycling
March 2008
Feb. 2008
Success-fully test pressurized extruder device
Test several prototypes including canisters,
concrete pump and extruder
Jan 2008
Oct. 2007
Cease field testing to complete RD on new
injection system
Sept. 2007
August 2007
May-July 2007
April 2007
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PID Injection System Transition
PREVIOUS INJECTION SYSTEM Two Stage Eductor
Driven By 2200 HP Frac Pump Total Cost 1.4
million OPEX fuel
NEW INJECTION SKID Extruder (Screw) Based
Injection System
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New Injection System Design Major Components
Particle Feed Hopper
Particle Elevator
Upper Pressure Vessel
Lower Pressure Vessel
Automation Control Center
Hydraulic Power Unit
Extruder Side A
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New Injection System Design Major Components
Extruder Housing
Extruder Feed Screw
Pressure Barrier
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Schematic of New PID System

• Same height as rig floor
• Redundancy built in
• Key components now tested satisfactorily
• Estimated production cost is 800k

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Features of New Particle Injection Skid

• Designed to be transported with
• standard tractor trailer
• Tower is complete and ready to be
• plugged in
• Early versions to be hoisted by crane
• later versions will be self erecting
• Complete redundancy to minimize
• potential drilling interruptions

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Particle Injection System Video
Click Here to watch video
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Current Schedule

• Determine which of three candidate wells are best
  suited for PID operations
• Prepare equipment for mobilization to rig site
• Complete drilling on the relevant formation with
  a four bit test
• Drill the formation with each bit to assess which
  of the four bits perform the best
• Announce results of trial and begin plans for the
  next trial

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Financial Overview

• Outstanding Shares Market Capitalization (Pro
  forma Rights Offering)
• Common Stock
  
  35,269,089
• Outstanding Stock Options Warrants
  
  5,870,516
• Total Fully Diluted Shares Outstanding
  
  41,139,605
• Approximate Market Capitalization At March 24,
  2008 75,700,000

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Pro-Forma Balance Sheet December 31, 2007
(Includes 5.150 million in net proceeds from
rights offering)
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Management Team

• Jim B. Terry, President Chief Executive Officer
  - Vice President, Drilling Services for
  Weatherford International from 2003 until 2005
  Over 9 years at Halliburton Company, the last
  three of those years as DirectorAdvanced Well
  Construction Systems Over 2 years at Smith
  International Over 14 years at Eastman
  Whipstock/Baker Hughes.
• J. Chris Boswell, Senior Vice President CFO -
  SVP Chief Financial Officer for Petroleum
  Geo-Services from 1995 until 2002 Over 20 years
  of experience in corporate finance and
  accounting Over 8 years of experience with Price
  Waterhouse and Arthur Andersen.
• Thomas Hardisty, Senior Vice President, Business
  Development - Over 20 years of experience in the
  upstream exploration production sector of the
  oil and gas industry Served as Vice President,
  Land Shoreline Partners Senior Landman for
  Texstar Petroleum Inc. and as Senior Staff
  Landman for PetroCorp Inc.
• Gordon Tibbits, Vice President of Technology -
  Over 36 years in engineering, research and
  development management held the position of
  Director of Research Development for Hughes
  Christensen Was responsible for many innovative
  drilling tool concepts including diamond drill
  bits using natural stones as well as
  Polycrystalline Diamond Compacts (PDC) bits
  Holds over 70 patents related to drilling,
  coring, and diamond cutting tools.
• Greg Galloway, Vice President of Operations -
  Over 26 years of experience relevant to PDTI in
  the drilling and oilfield services industry. Most
  recently, Mr. Galloway served as Global Product
  Line Manager for Weatherford International, where
  he focused on drilling hazard mitigation which
  included drilling with casing, expandable
  tubulars and managed pressure drilling
  techniques. Mr. Galloway is an innovative manager
  with a strong technical reputation in leading
  edge technologies and drilling performance
  enhancements.

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Independent Directors

• Ken R. LeSuer, Chairman of the Board - Recently
  retired from the Vice Chairman role at
  Halliburton Company where he reported to Dick
  Cheney Prior to becoming Vice Chairman at
  Halliburton, Mr. LeSuer served as both the
  President and CEO of Halliburton Energy Services
  and as President and Chairman of Halliburton
  Energy Group.
• John D. Schiller Jr., Director - Over 25 years
  experience in oil gas business Currently
  Chairman CEO of Energy XXI, an independent
  exploration and production company Served as
  Vice President, Exploration Production for
  Devon Energy (NYSEDVN) Prior to Devon Energy,
  Mr. Schiller served as Executive Vice President,
  Exploration and Production for Ocean Energy, Inc.
• Michael S. Mathews, Director - Most recently
  served as the Vice Chairman for Petroleum
  Geo-Services (PGS) and is the Managing Director
  for Westgate Capital Co. Mr. Mathews sits on
  many oilfield service Boards and has a strong
  financial and legal background and greatly
  assists the Board in these areas.
• Hugh A. Menown, Director - Mr. Menown currently
  serves as Vice President and Chief Accounting
  Officer of Energy XXI and has over 23 years
  experience in mergers and acquisitions, auditing
  and managerial finance. He is a former partner
  of PriceWaterhouse Coopers, LLC and provides the
  Company with strong guidance in the areas of
  corporate finance, SEC compliance and audit
  matters.
• Byron Dunn, Director - Mr. Dunn is currently the
  President and CEO of IDM Group. Previously he
  served as VP Corp. Develop. with National Oilwell
  where he chaired the National Oilwell/Varco
  integration team and served as President of
  Eastern Hemisphere Rig Solutions. Prior to
  National Oilwell, he worked for UBS Global Energy
  and Power Group, head of Oilfield Service
  Research and later as Exec. Director in the
  Investment Banking Group. Mr. Dunn is a graduate
  of Illinois Institute of Technology with a BS,
  Chemical Engineering received his MBA from
  University of Chicago, and is a Chartered
  Financial Analyst.
• Kevin Flannery, Director - Mr. Flannery is the
  President and CEO of Whelan Financial Corp. At
  Whelan Financial Corp., Mr. Flannery is engaged
  in corporate advisory work, including serving as
  Chairman of the Stockholders Committee of Tesoro
  Petroleum Corp.  Previously, he served as the
  Chairman and CEO of RoweCom, Inc. and as Chairman
  and CEO of Telespectrum Worldwide Inc.
  Mr. Flannery is also currently Chairman and CEO
  of Rehrig United, Inc. and has served as Vice
  Chairman of Texas Petrochemical LP since
  May 2004. Mr. Flannery was formerly a member of
  the New York Stock Exchange Allocation Committee.

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