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MXLK 4.80/4.90 forward event completed (news after close):

MedXLink Corp. Completes Merger with Particle Drilling Technologies Inc.

January 14, 2005 17:25:00 (ET)


HOUSTON, Jan 14, 2005 (BUSINESS WIRE) -- 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., (MXLK, Trade)("MedXLink"), today announced they have completed the previously announced acquisition of PDTI by MedXLink in a stock-for-stock transaction. The combined company will have approximately 22 million fully diluted shares outstanding. MedXLink intends to change its name to Particle Drilling Technologies Inc. and its stock ticker in the near future.

John D. Schiller, Jr., the chief executive officer of PDTI, stated: "This merger continues to advance the Particle Drilling business plan as we remain focused on final development and commercialization of our technology. The Particle Drilling technology has the potential to reduce the cost of drilling for oil and gas by decreasing the cost and time required to drill through difficult 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 drilling mud into the path of the drill bit. 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. 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. The system is expected to result in increased bit life, longer footage runs and much higher rates of penetration, 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 drilling market.

Pursuant to the Agreement and Plan of Reorganization, many of the officers and directors of PDTI will become officers and directors of MedXLink. A brief biography of PDTI's senior management and its expected Board of Directors is summarized below.


Officers & Directors
John D. Schiller, Jr., President and CEO

Mr. Schiller was previously with 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 Industry Board. He is a member of the Society of Petroleum Engineers, American Petroleum Institute, American Association of Drilling Engineers and Board member of the Houston Producers Forum.

Ken R. LeSuer, Chairman and 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, Okla., 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.

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. 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 financed over $3 billion of capital expenditures to fund the Company's growth. 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 (SKE, Trade) and now has a market capitalization in excess of $1 billion. Mr. Boswell is a 1984 graduate of the University of Texas at Austin.

Thomas E. Hardisty, Senior Vice President, Corporate Development and Director