Exploration Drilling International Inc.
OTC Bulletin Board : EXDL

Exploration Drilling International Inc.

December 13, 2006 09:30 ET

Independent Market Study Commissioned by EDI Exploration Drilling International GmbH Predicts Strong Market Potential for Drilling and Well Construction Technologies

BLAINE, WASHINGTON--(CCNMatthews - Dec. 13, 2006) - Exploration Drilling International Inc. (OTCBB:EXDL) (the "Company") announced today that an independent market study commissioned by its wholly owned subsidiary, EDI Exploration Drilling International GmbH ("EDI GmbH"), has confirmed its management's predictions of strong global market potential for drilling and well construction technologies. The market study was commissioned by EDI GmbH, and prepared by the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT ("Fraunhofer UMSICHT"), a division of Fraunhofer Gesellschaft, a German research organization that provides applied research services to public institutions, governments and private industry. Fraunhofer Gesellschaft is Europe's leading applied research organization and is funded by the German federal and state governments as well as by private industry.

The study predicts that, in order to meet the world's drinking water needs by the year 2025 through the exploitation of ground water resources, 8 million new water wells will need to be constructed worldwide. The same study also indicates that, in 2003, water technology exports from Europe to Latin America, Asia and the Middle East reached 10.3 billion euros (approximately $13.6 billion US). Approximately 2% of these exports, totalling 228.2 million euros (approximately $301.2 million US), were made up of drilling equipment exports. Based on this report, the Company believes that there is strong market potential for its well drilling technologies and services.

The Company believes that its Fluid Finder well drilling technology is more efficient and more economical than traditional water drilling technologies. Traditional techniques require the drilling rod to be withdrawn and removed from the borehole before the well can be lined and water samples taken. Traditional techniques are also often unable to ensure that the borehole walls are sufficiently sealed to prevent higher aquifer levels from contaminating lower level water sources.

The Company's Fluid Finder technology, which is fitted above the drill bit, enables samples to be taken and analysed at any desired level while the drill rod is still in place. As a result, using a single borehole, multiple rock layers can be analysed to find the optimum ground water level. Depending upon the number of drillings, the depth of the water table and the type of rock being penetrated, the Fluid Finder system can provide significant cost advantages by reducing the number of personnel, time and materials required. The Company also believes that its Fluid Finder technology has promise in geothermal power applications.

EDI Exploration Drilling International GmbH is the wholly owned subsidiary of Exploration Drilling International Inc. Exploration Drilling International Inc.'s shares are traded on over-the-counter market in the United States (OTCBB:EXDL) as well as on the stock market in Frankfurt (WKN: A0LCJB, ISIN: US30216C1009).

This Press Release may contain, in addition, to historical information, forward-looking statements. These statements may involve known and unknown risks and uncertainties and other factors that may cause actual results to be materially different from the results implied herein. In particular, the market for well drilling services and equipment is highly competitive. There are a number of contractors and equipment providers who are better established and have more resources than the Company. In addition, these competitors use drilling and well construction techniques that are more established than the technologies developed and marketed by the Company. There are no assurances that the Company will be able to gain market acceptance for its technologies or that the Company will be able to effectively compete with its more well established competitors.

Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.

EXPLORATION DRILLING INTERNATIONAL INC.

Guenter Thiemann, Chief Financial Officer and Treasurer


Contact Information

  • Exploration Drilling International Inc.
    Dipl.-Ing. Rainer Rotthaeuser
    Chief Executive Officer and President
    +49-2364-60 44 28
    +49-2364-60-44 29 (FAX)
    Email: r.rotthaeuser@edipower.com