This presentation contains forward-looking statements and information regarding the future performance and actions of Verdisys that involve risks and uncertainties that could cause actual results and actions to differ materially, including, but not limited to, failure to complete proposed acquisitions, failure to service or refinance debt, failure to complete asset sales, economic conditions, customer demand, increased competition in the relevant market, and others. We refer you to the documents that the Company files from time to time with the Securities and Exchange Commission, such as the Form 10-K, Form 10-Q and Form 8-K reports, which contain additional important factors that could cause actual results to differ from its current expectations and from the forward-looking statements made in this presentation. Forward-Looking Statements

Key Facts Symbol VDYS (OTC:BB) Corporate Headquarters Houston, Texas Public Listing July 2003 - Reverse Merger Stock Price (11/10/03) and 52-Week Range $11.95 || $1.01 to $16.25 Primary and F-D Shares Outstanding 29.2 mm || 32.3 mm Float (shares) 2 mm Market Cap $349 mm Volume (daily 90-day average) 101,000 Cash / Debt (11/04/03) $4 mm || $0 mm Insider Ownership 40% of fully diluted shares Institutional Ownership 4% of fully diluted shares Employees 45

Exclusive North American rights to patented Verdisys Lateral Drilling Services (VLDS) Technology works in both Oil and Gas Wells Technology works in both newly-drilled wells and low-volume or shut-in wells Technology can economically increase hydrocarbon production Potential $20 billion + market opportunity What We Do

Target Market 99% of U.S. natural gas supply produced in N. American Fields Demand growing 2 1/2% per year and supply is depleting Estimated that up to 85% of known reserves in N. America are still in the ground Verdisys Lateral Drilling Services (VLDS) technology can potentially unlock an additional 15-20% Estimated that up to 500,000 low-production or shut-in wells are immediate candidates

Company History Verdisys Lateral Drilling Services (VLDS) invented and patented by Carl Landers A total of 3 patents granted 1995-2000 Landers attempted to improve and commercialize the process 2000-2002 Landers sold technology to a party who didn't perform Early 2003 Landers sold North American rights to Verdisys July 2003 Verdisys merged with a public company

Management/Operating Team Dan Williams - President and CEO Frances Powell - CFO (Former Grant Prideco CFO) Joe Gasca (Former V.P. Texaco - Mgr. North Sea) Don Hynek - Field Ops. (Former V.P. Texaco) Board Ron Robinson - Chairman of the Board Former President of Texaco Technologies Eric McAfee - Vice Chairman Founded 6 companies/Funded 25 companies John Block - Director Board member of ADM, John Deere, Hormel

Competitive Production Enhancement Options

How It Works Ultra-high water pressure drilling process Drills 2" bores up to 700 feet laterally from existing well bores Turns from vertical to horizontal within 12 inches inside existing well shaft Bores are drilled using stainless steel or flexible tubing Tubing is removed after each bore is drilled

Process Schematic

Lateral Drilling - Plan View Field Outline

Existing Truck Mounted Unit

Patented Cutting Nozzle

Process Can Access Untapped Reservoirs

Historical Production Increases Historical Production Increases

Current Production Increases Currently drilling gas fields in Monroe, LA Have drilled 35 wells in the last 90 days Formerly shut-in wells (zero production) are averaging over 100,000 cu. ft. per day Several examples of 1,000% increases

Business Model Base price is $50,000-$65,000 per well Includes up to 4 laterals Over 50% gross profit margins Typically includes over 50% of the back-end production royalties after drilling Alternate pricing at $100,000 + per well Over 70% gross profit margins Includes zero back-end production royalties

Metrics Number of Drilling Rigs in Service Currently have 6 rigs in service Cost approx. $200k to manufacture from standard oilfield services components Goal is 7 by year-end 2003 and 15 by year-end 2004 Each rig requires a 3-man crew Number of wells drilled per rig Wells can be drilled in 2-3 days Goal is 10 wells per month per rig

Landers R&D Anadarko Burlington Resources EOG Resources 300 Wells drilled Verdisys Early Adopters Energy 2000 NGC, Inc. Drum Operating Co. Natural Gas Systems Major Energy Companies EOG Resources Customer Traction

Where Are We Today 3 Contracts totaling more than 500 wells in back-log First contract signed was a related-party transaction Second contract signed was with a commercial finance group Primary goal was to provide "traction" for the business Current focus is on signing a "validating" customer from within the oil/gas industry

Corporate Goals Additional management from oilfield services industry Listing on a major exchange New customer wins from within the oil/gas industry Rolling out and staffing a fleet of new drilling rigs

Solutions for Energy Production Enhancement

Contents: 2 Executive Summary 2 Overview 2 The Company 2 Services and Solutions 4 Market 5 Sales 6 Competitors 7 The Industry 7 Management Team 10 Lateral Drilling Technology and Oilfield Services 13 Press Releases 13 Verdisys Inc. Announces Merger with Reconstructed Data Group,Inc. 14 Verdisys Inc. Awarded Contract to Re-Open Monroe Gas Field in Louisiana 14 Apache Corporation Significantly Expands Remote Field Communications with Verdisys,Inc. 15 Verdisys Inc. Awarded Significant Monroe Gas Field Contract Expansion To over $5 Million 15 Verdisys Inc. Awarded Over $14M Contract by Edge Capital Group 16 Verdisys Inc. Announces Merger Completion 16 Verdisys Inc. Announces Availability of Secure Satellite Voice Over IP and Internet Communication Service 17 Verdisys Inc. Acquires Additional Natural Gas Wells and Retention Of Field Management Company 17 Verdisys Inc. Announces Key Satellite Executive Appointment 18 Verdisys Selected Work History

Overview Verdisys can laterally The Company drill a well in a Verdisys Inc.'s primary business is the enhancement matter of a few days Headquartered in Houston,Texas,Verdisys,Inc. of recovery from oil and gas wells. Using a proprietary provides proprietary oil services and solutions lateral drilling system employing ultra-high water atone-quarter the cost for Energy Production Enhancementin the pressure,itcan drill lateral holes from the existing of conventional methods areas of Satellite Communications and Drilling well bore for a distance of 300 feet,releasing Technologies. Verdisys provides vertically additional reserves from declining or otherwise integrated solutions to help energy companies depleted wells. The process has been proven in exploitoil and gas production worldwide. over 300 wells drilled to date and has provided The Company was incorporated as Agzone recoveries equal to or more than the original Inc.in 1999 to provide eCommerce satellite reserves of wells. telecommunications services to agribusiness. The Company's secondary business,accounting Itchanged its name to Verdisys Inc.in 2001. With for 10% of its sales and earnings,is in providing the acquisition of the rights to a lateral drilling satellite hook-ups to oil and gas well operators process in 2003,the Company changed its market to remotely monitor and control well-head and focus to concentrate on services to the oil and gas pipeline operations. This business complements extraction industry. In July 2003,the Company the drilling business as they both serve the merged with Reconstruction Data Group,Inc.as same industry. a vehicle for taking the Company public. The lateral drilling operation is currently encountering a strong surge in demand due to its costeffectiveness and high oil and gas prices. Using specially designed mobile drilling rigs,the Services and Solutions Company can laterally drill a well in a matter of a few days atone-fourth the costof conventional methods. The combination of low frontend costs Lateral Drilling Services and the proven effectiveness and speed of the process make ithighly attractive to well operators In the U.S.and Canada,Verdisys provides oil and thatare already connected to pipelines and can gas companies with a proprietary lateral drilling The satellite telecommunication business competes obtain a quick high return on investment. The low service utilizing specially fabricated mobile drilling on the basis of its low cost,speed and broadband costof the process opens a vastmarketfrom rigs. This technology is protected by three issued capability. Its competitive advantage is based on among the 320,000 gas wells in the U.S.where patents. Verdisys has acquired the exclusive rights its technical expertise in the use of multi-frequencies. remaining reserves could notbe economically to the North American marketfor this drilling While the Company expects thatthis will eventually reached with conventional enhancementmethods. technology thathas had more than a decade of be imitated,its head startwill allow itto establish proven success in dramatically increasing the a leading marketposition and profitable scale of The Company's decisive competitive advantages production of oil and gas wells. operation before competitors gain any momentum. in speed and costhave led to contracts on hand for 320 wells,almosthalf of its projected drilling An estimated 87% of the known oil reserves in the The Company has a highly qualified management activity for the nexteighteen months. This U.S.remain untapped. By extending 2"channels team backed by an exceptionally strong Board competitive advantage is sustainable because up to 300 feetin up to 16 differentdirections at of Directors. of three patents on the process. Atpresent,there any given depth from the casing of the well the is no directcompetition to the Verdisys lateral Verdisys drilling solution provides an economical drilling process. way to regain production levels of existing,depleted 2 Executive Summary

wells,thereby reducing the need for new or foreign data transmission atless than $300 average cost sources of oil and gas. The lateral drilling operation per connection. Wi-Fi is inherently flexible and uses a patented ultra-high pressure water process does notincur the normal high wiring costs of a which is capable of drilling lateral holes from existing cable LAN. Internetconnections are also used to wells up to 300 feetin length in wells up to 5,800 provide maximum flexibility and to reduce costs. feetdeep. (Further developmentis expected to Itis easy to implementa Virtual Private Network extend the range to 500 feetand depth capability (VPN) for internal company data and voice to 10,000 feetor more.) The process has been communication. This allows automated data used in over 300 wells to date and has proven collection and easy five-digitinternal phone dialing to be exceptionally costeffective in enhancing anywhere in the world and becomes extremely recovery from capped or waning wells in a wide importantin remote geographies where normal range of formations,tapping an additional 20% telephone communications are either poor or of reserves beyond the 15% extracted through unavailable. The Verdisys VPN implementation conventional vertical drilling methodologies. is costeffective because ituses existing satellite With this technology,Verdisys has the ability to connections,Wi-Fi and the Internet. Phone drill up to 16 laterals in only eighthours and be on communication is easily integrated into existing and off the job site in less than two days. Verdisys applications because of its Voice Over IP charges an average price of around $65,000 per VERDISYS PROVIDES PROPRIETARY (VoIP) structure. natural gas well. Specialized drilling competitors OIL SERVICES AND SOLUTIONS IN Reliability and availability are critical considerations typically charge an average of $400,000 per well for Supervisory Control And Data Acquisition to produce similar or worse results,and require THE AREAS OF SATELLITE (SCADA). SPN is provided 24/7 with 99.99% up to two weeks per well.The resulting production COMMUNICATIONS AND availability virtually anywhere in the world and improvementfar exceeds thatprovided by there are fewer points of failure than comparable traditional lateral drilling methods.Verdisys'ability DRILLING TECHNOLOGIES. terrestrial services. Itprovides uniform service levels, to targetwith pinpointaccuracy new or previously and is faster and more costeffective to deploy. untapped reserves makes its technology all the SPN is also very flexible and easily accommodates more compelling. site additions,relocations,bandwidth expansion, Atthese reduced costs,Verdisys has made it and network reconfiguration. feasible to enhance production from more than Security,integrity,and reliability have been 320,000 wells in the United States thatwould control and data acquisition. Itallows companies specifically designed into the satellite,Wi-Fi LAN otherwise be costprohibitive to recover,a total to dispense with a manual structure and move to and Internetimplementations within SPN to potential marketof more than $26 billion. The a real-time,automated,state of the artenergy ensure thatmission critical information is neither existing oil and gas customers of the Company managementprogram. Production levels can corrupted nor compromised. VPN communications are very large potential customers of this patented now be optimized for currentmarketconditions are,in fact,much more secure than many normal horizontal drilling service. and production commitments metin a timely way. telephone lines. Secure encryption is used and the The resultis improved profitability,higher return Wi-Fi implementation does notallow access to on assets,and enhanced customer satisfaction. unauthorized users. SPN is based on industry SATELLITE SERVICES standards such as TCP/IP and IEEE802.11b to The Company's "Satellite Private Network (SPN's)" SPN uses satellite communications thatis low lower implementation costs and to simplify the utilizes two-way satellite broadband to provide costand ensures worldwide availability,even in integration into existing systems. energy companies with a wide variety of remote geographic areas with a poor communications energy managementapplications.SPN has been infrastructure. The local site utilizes Wi-Fi,a wireless optimized for costeffective real-time supervisory Local Area Network (LAN) thatprovides high-speed 3 Executive Summary

MARKET as other energy satellite communications VERDISYS HAS THE ABILITY TO TAKE companies focus on the high-end needs of the marketthatcomprise less than 5% of the total WELLS THATARE ALREADY CAPPED marketopportunity. LATERAL DRILLING SERVICES The United States is the world's largestmarketfor BACK TO THEIR ORIGINAL,AND Verdisys utilizes satellite,Wi-Fi and other wireless natural gas and 99 per centof the gas consumed HIGHER, PRODUCTION LEVELS. technology for the lastmile of wellhead connectivity. is produced in North America,supplying one-fourth Soon,the Company will be able to offer shared of the nation's energy.Natural gas as a clean and hub services and the lowestremote modem efficientfuel has become ubiquitous to the implementation costusing satellite and Wi-Fi to American lifestyle in heating the home,cooking, every well in the world. Beyond the shared hub drying clothes and fueling automobiles.The services are other high tech services and the adventof the additional need for electricity in developmentand integration of other satellite America has also spawned heavy demand from and high bandwidth wireless local area network power plants along with traditional users in pulp technologies. The common denominator and paper,cementand asphalt,chemicals,plastics throughoutis MPLS/ATM (Multiple Protocol Label and petroleum refining.Demand is growing ata Switching) network transportservices. pace of 2.5 percent per annum whereas supply is In both service segments the Verdisys marketing increasing by only 1 percent.Further,such supply program is based on its innovative technology and is dependenton drilling new wells in existing the costeffectiveness of its services,and its ability depleted fields,or new reserves in expensive less to demonstrate superior returns on investment. accessible fields creating a "Depletion Treadmill"of The Verdisys lateral drilling and production increasing demand chasing limited supply.A less enhancementoperation enjoy an exceptionally compelling alternative is also being considered to strong marketfor the following reasons: importlarge quantities of liquefied natural gas from overseas.Verdisys believes its lateral drilling o The process has a relatively low frontend cost technology can access previously unrecoverable and is quick requiring only a few days of drilling. reserves and bring them to marketatvery cost Since waning or depleted wells are already effective prices thereby solving partof this connected to or close to pipelines,the additional supply/demand continuum very profitably. production can be marketed immediately.The combination of relatively low frontend cost In the enhancementof oil and gas field production, SATELLITE COMMUNICATIONS combined with the ability to immediately Verdisys has the ability to take wells thatare There are 1.7 million petroleum wells thatwould marketthe outputathigh prices lowers the risk, already capped back to their original,or higher, benefitfrom the economics of Verdisys'high speed making the investmenthighly attractive to the production levels,allowing production companies connectivity services. The Company's focus is serving well owners. to leverage existing facilities rather than drilling new wells. With its unique lateral drilling technology, the needs of oil and gas producers worldwide to o This low frontend costof aboutone-fourth of Verdisys can provide recovery rates thatwere never control their production effectively and to enhance the costof conventional methods,opens a vast before thoughtpossible and thereby expects to customer satisfaction by providing worldwide marketfor the Company from of capped or become the dominantsupplier of these services to real-time access to information. Verdisys'service waning wells where the remaining reserves energy companies. Rather than leaving a field enables real-time Supervisory Control And Data cannotbe economically reached by conventional because of the depletion of oil or natural gas, Acquisition (SCADA) and provides a new opportunity drilling and enhancementtechnologies. production companies can now enhance the pay for energy companies to automate functions that zones through lateral drilling to sometimes double are currently manual.Verdisys believes itis the or triple field life. only company primarily focused in this market, 4 Executive Summary

o Oil and gas prices are expected to remain high BRITISH PETROLEUM: The third largestoil and gas for the intermediate term. While oil prices are company in the world with revenues of $179 billion volatile and future prices uncertain,the and oil and gas reserves of 179 billion barrels/ shortage of natural gas makes italmostcertain barrel equivalents.British Petroleum has been thatprices will remain high for atleastseven a customer of Verdisys for some time and is in years until major new northern supplies reach negotiations to expand the number of the market. (More on the industry situation satellite locations. to follow.) NOBLE AFFILIATES: Noble Energy is one of the leading independentenergy companies with over $1.4 billion in revenues.Verdisys is providing remote field service and monitoring for this company's SALES many offshore platforms. CARGILL: The world's largestprivate company,Cargill is an agricultural processing and commodity LATERAL DRILLING SERVICES conglomerate.Verdisys is implementing connectivity The Company signed the exclusive license for to 50 processing plants and 800 grain elevators. Lateral Drilling in April,2003 and commenced VERDISYS UTILIZES TWO-WAY For 8 outof 10 opportunities,customers wanta operations in June.Targetcustomers are large lease for both hard and softcosts in the field. companies such as Apache,British Petroleum,EOG SATELLITE BROADBAND TO PROVIDE The Company is using a unique financing solution and small to medium size companies thatoffer to provide combined inventory and broadband ENERGY COMPANIES WITH A the advantage of more attractive financial returns financing and leasing for all of its customers. to Verdisys.To date the Company has signed VARIETY OF REMOTE ENERGY This financing pays Verdisys for all contractwork contracts with two small independentcompanies, atthe time of drilling or installation,including Edge Capital Group and Energy 2000,Inc.,to drill a MANAGEMENTAPPLICATIONS. three years of bandwidth services. The company's total of 320 wells.The base price per well averages financing partner then manages billing and invoicing $65,000 plus third party costs for up to 8 laterals the customer for the remainder of the contract. per well.Therefore the minimum contractvalue for these initial contracts is $19M.The Company has For larger accounts such as Apache Oil,the company's also negotiated significantinterests in the back- financing partner has extended the customer a $1 end production of these wells so thatitcan realize million creditlimit. Once the projectfinancing a significantrevenue stream for hopefully 10-12 SATELLITE SERVICES paperwork is signed by the customer,Verdisys years of revenues.Verdisys has also had interest The following existing customers are a sample of can keep using the creditline to build and deploy from other small to medium size operators for an the significantpotential for the Company: projects. In virtually all cases,each customer additional 1000+ wells which would guarantee the APACHE CORPORATION: A $2.6 billion energy company starts with a trial period of one well drilled or Company's backlog for the 2005 year. focused on the exploration and transportation one communication unitpilotorder,then moves to of oil with 1,400 monitoring sites for 14,000 25-50 wells or installations ata time. In negotiations with larger companies Verdisys wellheads.Apache is Verdisys'largestcustomer Atpresent,there are no serious competitors in does notexpectto realize such significantinterest with approximately $1m in bookings and either segmentof the Verdisys business. For in the back-end production.Consequently it commitments to date. lateral drilling,conventional directional drilling is expects to charge higher prices for the drilling services in these fields.The larger companies have slow and significantly more expensive to the several large fields with thousands of wells. extentthatitis only being used if its much larger drilling radius was required as is necessary in offshore or environmentally sensitive areas. 5 Executive Summary

Companies offering this service are Sperry lies in its technical expertise in being able to use Resources,Nabors Drilling and Patterson.They Atpresent,there are multi-frequencies. However this capability is not traditionally drill one lateral through the existing proprietary and will eventually be copied by well.Thatlateral can take over 200 feetto achieve no serious competitors competitors. The Company will sustain its growth the turn to the horizontal and be limited to only in either segmentof by taking advantage of its "firstmover"position one "pay"zone.Itusually costs over $400,000 and which will allow itto establish a leading market the financial returns are very minimal. the Verdisys business. position and reputation before competitors gain any momentum. While the emergence of imitators Other water jetdrilling methods in use have a with similar capability will slow sales growth in the limited radius of about10 feet. The competitive longer term,the Company will have established a advantage of the Verdisys system is sustainable marketbase well above the economic critical mass through the life of the patents. A key patent required. If competitive pricing and a high quality involving the nozzle design was issued in 1998. of service are maintained,customers will have little incentive to switch. Verdisys operates in the oil well services industry. This industry as a whole provides a wide range of Competitors services to the oil and gas extraction companies including exploration,equipmentsupply,construction, logistics,drilling,recovery enhancement,etc. The A further patentwas issued in 2003 covering a various suppliers positions in the industry are based variation of the process and further patents can on the specialized capabilities and technologies of be expected as the process is further refined to the member firms which the extraction industry extend its range and depth capability. requires in its business. The production industry outsources service functions to augmentits in-house capability and/or to take advantage of The telecommunications operation the expertise of the service providers. faces competitors on several levels: While the major portion of oil and gas production is provided by relatively large international oil o Petrocom,Stratus and Caprock are also providers companies,there are also a large number of smaller specializing on the oil and gas market. Caprock producers. This has created a two tier services and Stratus are focused on the top 5% of the While the telecommunications industry as a whole supply industry with large multi-national companies market,particularly offshore platforms,where is intensely competitive due to overcapacity in the such as Halliburton and Schlumberger supplying prices are 10-30 times thatof the lower portion industry,Verdisys will,to a significantdegree,be a wide range of services primarily to the large of the market. Petrocom also focuses on the insulated from this situation by focusing on specific production companies. The need for size and broad offshore marketusing a traditional wireless industry needs. Itwill therefore compete on the expertise to meetthe needs of their international network and is relatively small with only basis of its superiority in low up-frontinfrastructure customers has led to some consolidation of the 100 installations. and operating costs,superior speed,single vendor industry by acquisitions and mergers. convenience and the ability to customize the service o Alternative delivery systems including cable, to customer needs. Its competitive advantage wireless and dial-up are available to potential customers buthave performance limitations and are more costly. 6 Executive Summary

The Industry The Verdisys businesses are,to a significant degree,cushioned from the impactof possibly lower oil prices because they provide the ability to increase outputand productivity atlow The services industry includes a large number of incremental cost. The services therefore will smaller companies thatfocus on serving smaller remain attractive to companies trying to reduce oil well operators or providing specialized services costs when oil prices are low. to the large ones. Verdisys provides lateral drilling and telecommunications services to both small and large well operaters. Activity in the oil well service industry closely follows thatof the extraction industry which is ManagementTeam cyclical,depending on oil prices. As of mid-2003 the prospects for the industry are quite favorable, atleastin the intermediate term,for the Board of Directors following reasons: Ronald J.Robinson,Chairman Dr.Robinson joined Verdisys as Chairman of the o While oil prices are unpredictable,they should Board in January 2002.Before joining Verdisys, remain relatively high by historic terms for Verdisys businesses are, Robinson served as presidentof Texaco Technologies. several years. Continuing high consumption, Texaco merged with Chevron in 2001 and the new limitations in delivery infrastructures and to a significantdegree, company,ChevronTexaco,is one of the largest political unrestin major supplying countries petroleum companies in the world. will all be contributing factors. cushioned from the impact of possibly lower oil prices. Dr.Robinson is also the former head of the o Natural gas prices can be expected to remain Petroleum Engineering DepartmentatTexas high for several years due to the combination of A&M University. Prior to Texaco,he spentyears strong demand and supply constraints.Demand in reservoir engineering and thermal recovery for is rising atthe rate of 2 1/2% per year with supply Getty Oil. Dr.Robinson has a Ph.D.in Petroleum increasing atthe rate of only 1% per year. About Engineering from Texas A&M University,an M.S. one-halfof U.S.reserves have been depleted with in Physics from Baylor University and a B.S.in the remainder increasingly expensive and difficult Physics and Mathematics from the University to reach.Significantnew supplies from Alaska o There is no substitution threatto oil and natural of Southern Colorado. and the Canadian north require the construction gas in the foreseeable future. In particular,any of new pipelines which are atleastseven years Eric McAfee,Director significantsubstitution by hydrogen is many away.The situation is serious enough thateven Mr.McAfee was appointed to the Board of decades away. Federal Reserve Bank Chairman Alan Greenspan Directors in January 2001. He is a principal atBerg has expressed concern as to its effectas a o The lateral drilling process is much more McAfee Companies,a venture capital firm based constraintto economic growth. environmentally friendly than conventional in Cupertino,California,with holdings in more drilling because itdoes notrequire the moving than twenty software and telecommunications o The political environmentin the U.S.under the of large heavy drilling rigs nor the establishment companies. Mr.McAfee is a director of the Bush Administration is oil friendly,particularly of mud pits. California Manufacturers & Technology because of a desire to reduce dependence on Association,was selected as a member of the offshore supplies. George W.Bush Information Technology National Advisory Committee,and received a Congressional Award for his volunteer work. 7 Executive Summary

A co-founder of five technology companies,Mr. to help lead its major turnaround,which is now McAfee serves or has served on the Boards of Verdisys has to date signed the largestcompany in its field with over 32,000 Directors of MindArrow Systems (rich media locations. He also was director and chair of the eMarketing solutions);IQ Biometrix (security contracts worth $19M with strategy committee of Vendo,Int'l (one of the software);mvion (wireless infrastructure two IndependentCompanies to largestmanufacturers of vending machines) software);CustomerLink Systems (emarketing during its sale to Sanden of Japan. Dr.Penbera drill a total of 320 wells. solutions);Global Digital (systems software for received his Ph.D.from American University,an newspapers);iCommerce (eCommerce software M.P.A.from Bernard Baruch School and a B.A. for customers including Earthlink);DataZone from Rutgers University. (mobile network storage);Intraop Medical (patented mobile radiotherapy device for cancer Fred Ruiz,Director treatment);and DAC Intl (manufacturer of Mr.Ruiz became a member of the Company's high-precision lathes for optical lenses and Board of Advisors when the Company was specialized applications). Mr.McAfee lectured established in April 1999 and became a Director as the 2001 Entrepreneur in Residence atFresno in February 2000. He is Chairman and co-founder State University. He earned a B.S.in Management ofRuiz Food Products,Inc.,a privately held frozen (emphasis in Statistics) from Fresno State and food company. Mr.Ruiz currently serves on the received five awards upon graduation including board of directors of the McClatchy Company, the Dean's Medal,awarded to the outstanding Gottschalks,Inc.,the California Endowment,and graduate from the business school. He is also a the Hispanic College Fund. He is Chair of the 1993 graduate of the Stanford Graduate School Institute for Family Business and a member of the of Business Executive Program and the Harvard Business Advisory Council of California State Business School Private Equity course. University,Fresno. Mr.Ruiz is a Director of the American Frozen Foods Institute. John R.Block,Director Mr.Block became a Director of the Company in O.James Woodward,III,Director May 2000. He serves on the Board of Directors of Mr.Woodward became a member of the John Deere and Co.,Archer Daniels Midland,and Company's Board of Advisors when the Company Hormel Foods Corp. Mr.Block is the Presidentof was established in April 1999 and became a Joseph J.Penbera,Director Food Distributors International ("FDI"),which Director in February 2000.He is an attorney, Dr.Penbera is a co-founder of the Company and represents the wholesale grocery and foodservice currently in private practice,following a career as has been on the Board since the Company was distribution industry.Before joining FDI,Mr.Block corporate counsel for several large corporations, established in April 1999. He is an Eaton Fellow served for five years as Secretary of the U.S. Executive Vice-Presidentof Glendale Federal Bank, and Professor of Business atCalifornia State Departmentof Agriculture. As a member of the and Chairman of Mission Homes.Mr.Woodward University,Fresno,where he formerly served as Reagan Cabinet,Mr.Block was a key member of has served on numerous community boards,and Dean of the Craig School of Business. He is a the Economic Policy Council which dealtwith currently serves on the Boards of Gottshalks,Inc., board member of Gottschalks Dept.Stores,one of difficulttax and domestic farm program issues California State University,Fresno,Foundation,and the largestretailers in the Western U.S.(NYSE). Dr. and played a key role in developing the 1985 the Fresno Regional Foundation.Mr.Woodward Penbera was appointed director of Rug Doctor,LP Farm Bill. received his M.B.A.from the Stanford Graduate School of Business and J.D.from the University of California Law School,Berkeley. 8 Executive Summary

Executive Staff developmentand drill pipe manufacturing, sales and leader in drill bittechnology and high Dan Williams,President& Chief Executive Officer performance engineered connections and Mr.Williams is responsible for the overall premium tubular products. stewardship and strategic direction of Verdisys.He has been a driving force behind the development From 1987 to 1999,Ms.Powell served in various of commercial services.Mr.Williams is also managementpositions including Vice President, responsible for the development,expansion and Accounting & Controller for Weatherford business growth of the company,including the International,one of the largestglobal providers diversification of new opportunities,mergers of innovative mechanical solutions technology and acquisitions. services for the drilling and production sectors of the oil and gas industry. With over 20 years of oil industry,agribusiness and manufacturing experience,Mr.Williams previously From 1986 to 1989 Ms.Powell served in various served as Vice Presidentof Sales. managementpositions including Corporate Controller for GulfMark Offshore,Inc. Mr.Williams has been a managing partner in a number of companies thathave been creatively Ms.Powell has a Bachelor of Business responsive to changing local and international Administration,Major - Accounting,University Verdisys provides proprietary oil markets for a number of products.These ventures of Houston and is a Certified Public Accountant. include the design and manufacture of specialized services and solutions in the area pump service rigs for exportto the Middle East; of Satellite Communications the redesign of an almond processing plantto facilitate shipmentand sales throughoutEurope and Drilling Technologies and India;and the plan and implementation of the revitalization of oil and gas wells throughoutTexas and Montana. David Mauz,Chief Operating Officer Mr.Mauz is responsible for overseeing business operations of the strategic business units of A Microsoftcertification in networking,he Verdisys including solutions for voice,data, has conducted beta testing,systems analysis, video and energy infrastructure services. and technology integration services for enterprise networks. Mr.Mauz brings extensive technology and energy expertise to Verdisys and previously served as Frances R.Powell,Chief Financial Officer Director of Technology Solutions atVerdisys. From 1999 to 2001,Ms.Powell served as Vice A graduate of Western State College with a B.S.in President,Chief Financial Officer and Treasurer of Comprehensive Geology,Mr.Mauz worked in the GrantPrideco,Inc.,an oilfield service company oil and gas industry as a quality control manager which is the world leader in drill stem technology thatdigitized and stored oil and gas well logs. 9 Executive Summary

Lateral Drilling Technology and Oilfield Services Solutions for Energy Production Enhancement Oilfield Services Overview Verdisys has acquired the exclusive rights to the North American marketfor a drilling technology thathas had more than a decade of proven success in dramatically increasing the production of oil and gas wells. This technology is protected by three issued patents.These horizontal drilling technologies are centered around the use of fluid-jetdrilling techniques for secondary recovery of the in-place petroleum reserves on existing wells. These technologies allow a series of laterals to be drilled horizontally outinto the pay zone of an existing well. Verdisys Lateral Drilling Services (VLDS) targetthe estimated 2+ million existing Figure A oil and gas wells in North America 5800 feetdeep and shallower. With the use of VLDS oil thatotherwise would have remained beyond the reach of Verdisys will continue to improve the technologies associated with VLDS. conventional technologies can now be recovered efficiently and economically. Within the nexttwo years itis expected thatVerdisys will be able to service In mostcases production recovers to a pointator exceeding thatof the wells wells up to 10,000 feetdeep and drill lateral outas far as 500+ feet. In addition initial production. VLDS drill farther into the strata and costs are significantly to improving VLDS technology,Verdisys will continue to offer other value added less expensive than currentlateral drilling techniques. services in the oilfield. Verdisys Downhole Wireline Services (VDWS) will include:logging and video services. In addition to VLDS Verdisys also offers peripheral well stimulation services; collectively known as Verdisys Well Stimulation Services (VWSS). Besides being CurrentOil Field Services: an added revenue source these services enhance the effects of VLDS. The most popular of these services is CO2 injection. Injections of liquid CO2 into the well o Verdisys Lateral Drilling Services (VLDS). after VLDS is completed o Verdisys Well Stimulation Services (VWSS). has two major benefits: o Production Consulting Services. 1) CO2 acts as a detergent Future Oil Field Services and enhancements to currenttechnology: to clean to petroleum o Ability to provide lateral drilling in deeper wells.(>6000 feet). baring strata. o Ability to drill longer laterals (>300 feet). 2) CO2 raises the o Verdisys Downhole Wireline Services (VDWS). down-hole pressure in > Logging services. the well,thus forcing > Video services. more petroleum out of the petroleum baring strata. 10 Lateral Drilling Technologies and Oil Services

Oilfield Services Fields thatare ready to be deserted and have about80% of the reserves Verdisys has broughtthe same aggressive economic models to the oilfield still in ground can be maximized to pull another large portion of the in service industry thatithas created in the satellite communications field.To ground reserve. achieve this Verdisys has the exclusive license in North America to patented The figure below demonstrates how lateral drilling can drastically expand intellectual property of a new lateral drilling rig. Lateral or horizontal drilling the production area within a given field. An average well will pull petroleum has been around since the early 1980's and the average costof this service on from an area of up to 120 feetfrom the well bore. However,each VLDS Lateral an existing well is approximately $400,000.Verdisys through its technology can extends up to 300 feetfrom the well bore,thus increasing the area of perform nearly the same procedure with very similar results for an average of production several fold. $65,000 per well.This along with peripheral well stimulation services,such as C02 enhancement,will forge huge revenue returns to Verdisys customers. Traditional well bore configuration pulling from 120 feetequates to a total volume of pay zone of 271,296 cubic feet. Each lateral of 300 feetwill pull Verdisys Lateral Drilling Services (VLDS) from over 360,000 cubic feet. That's 1,440,000 cubic feeton four laterals. With conventional lateral drilling the transition from drilling vertically to horizontal drilling may take 200 feetor more and take days to accomplish. Features of Lateral Drilling include: Verdisys with its patented technology can make this transition in 2 feet o The lateral drilling process is fast. Average time the rig is on instead of the industry normal of 200 feetand do itin a matter of minutes . the well is only two days. This enables Verdisys to be extremely precise in targeting specific pay zones for a significantenhancementto the production of the well. o Cuts a two (2) inch diameter hole horizontally up to 300 feet from the well bore. Many of the nation's old oil and gas fields contain new infield reservoir o Lateral holes can be drilled atseveral levels. compartments and bypassed reservoirs thathave never been economical to produce. VLDS will make iteconomically viable to produce from those Benefits: reservoirs for the firsttime. o Increase production rate and recoverable reserves from marginal wells. VLDS utilizes patented technology in the areas of the design and manufacture o Improves injection rates in water disposal/injection wells. of the Deflecting Shoe and the process of high pressure waterjetdrilling. Figure A on page 10 more precisely illustrates the process. o Allows directional treatmentof wells e.g.acid,steam,CO2,etc. o Allows multi-layer application in thicker reservoir zones. Verdisys lateral drilling (VLDS) works on both new and existing wells.Where VLDS performs best,though,is on depleted wells thatare ready to be capped o Techniques mosteffective on old low productivity wells. because they are no longer economically viable.The strong marketpotential o No need for large,expensive rotary rigs. is thatthis negates the continual need for new explorations and drilling. 11 Lateral Drilling Technologies and Oil Services

o No mud pits thatcan damage the environment. o No casing milling equipmentnecessary. o No additional stimulation required. o Average operation duration is two days per well. Thus limiting the time the well is outof production. o No logging expense required. o No need to change well-bore configuration. Recent results: o Gas well,Alabama - Production increased from 50 to over 300 mcfd (thousands of cubic feetper day) sustained production. 500% increase. o Oil well,Utah - Production increased from 2 to 38 bopd (barrels of oil per day) sustained production. 1800% increase. o Oil well,Columbia - Production increased from 39 to 210 bopd sustained production.430% increase. o Gas well,Louisiana - Production increased from 16 to 212 mcfd sustained production.1200% increase. Verdisys Well Stimulation Services (VWSS) As an added enhancementVerdisys provides C02 injection into the well after the lateral drilling process is completed.This provides a 1000 to 1 ratio of expansion in the zone to provide added drive pressure to energy production.This process works extremely well in wells thathave lostdrive pressure butstill have a significant amountof oil and gas in formation. 12 Lateral Drilling Technologies and Oil Services

Press Releases in the United States remain untapped,a total potential marketof more than $50 billion. Verdisys'lateral drilling services provide a unique and costeffective method of tapping these reserves.By tapping these existing Verdisys,Inc.Announces Merger with reserves the Company will lessen North Reconstructed Data Group,Inc. America's dependency on overseas oil imports and further energy conservation and Oil Services Industry Pioneer Plans to go Public preservation efforts. - May 1,2003 "We are very excited atthe prospectof realizing Verdisys,Inc.of Houston,Texas,a leading this significantgoal in the Company's long term provider of patented lateral drilling oil services plans.Our customers and prospects look to us and satellite solutions for Energy Production to provide mission critical services and solutions," Enhancement,and Reconstructed Data Group, said Dan Williams,Presidentand Chief Executive Inc.,a Delaware corporation (OTCBB:RDGI), Officer. "This milestone ensures we can execute today announced they have signed a definitive our longer term strategic objectives for agreementto merge the two companies in a the Company." stock-for-stock transaction. After completion of Strategically,the merger allows Verdisys to grow the merger,the combined companies will have its Lateral Drilling and Satellite Communication approximately 28 million outstanding shares. businesses in tandem.The Company's Satellite Dr.Ron Robinson,former Presidentof Texaco Communications business,"Satellite Private Technologies and now Chairman of the Board of Networks(TM) (SPN's(TM))",utilize two-way satellite Verdisys,Inc.,said:"This merger is the nextstep in broadband to provide energy companies with executing the Verdisys business plan,expanding a wide variety of Remote Energy Management the resources of the company and creating a applications.Verdisys has developed unique, unique opportunity to service the needs of high quality and costeffective satellite energy companies today in energy production communication capabilities thatprovide enhancement.Access to the public markets will Energy Companies access to remote sites, provide Verdisys the credibility and financial including well heads,drilling platforms and strength to deliver the significantpotential of storage facilities. the patented and proprietary services itbrings to the oil and gas industry." Verdisys recently acquired the U.S.and Canadian rights to the patented Landers lateral drilling technology,considered to be a leading technology in the marketfor enhancing oil and gas well production from existing fields. These services allow increased oil and gas production from "Access to the public markets will existing wells as well as extracting oil and gas provide Verdisys the credibility and from wells previously "tapped out".There are 1.7 million petroleum wells thatwould benefit financial strength to deliver the from the economics of Verdisys'lateral drilling and high-speed satellite connectivity services. significantpotential of the patented An estimated 87% of the known oil reserves and proprietary services itbrings to the oil and gas industry." 13 Press Releases

Verdisys,Inc.Awarded Contract to Apache Corporation Significantly Expands "Apache Corporation has been an anchor customer Re-Open Monroe Gas Field in Louisiana Remote Field Communications with for Verdisys in demonstrating the benefits of Verdisys,Inc. providing data communications to the wellhead Former LargestGas Field in the World to be to more effectively monitor production flows on a Re-Opened - Monday May 5,2003 daily basis,"said Dan Williams,Presidentand Chief Remote Field Offices in Louisiana,New Mexico, Executive Officer,Verdisys,Inc."We look forward Oklahoma and Texas Provided with Satellite Verdisys,Inc.of Houston,Texas,a leading provider to expanding these benefits to provide more Communications - May 27,2003 of patented lateral drilling oil services and satellite data and voice communications to their remote solutions for Energy Production Enhancement,and operations wherever they may existin the World" Verdisys,Inc.of Houston,Texas,a leading provider Reconstruction Data Group,Inc.,a California of patented lateral drilling oil services and satellite Verdisys also announced thatithas signed a corporation (OTC Bulletin Board:RDGI.OB - News) solutions for Energy Production Enhancement, Master Services Agreementwith one of the largest today announced they have been awarded a and Reconstruction Data Group,Inc.,a California Oil Companies in the world to provide data and contractand commenced work on re-drilling part corporation (OTC Bulletin Board:RDGI.OB - News) voice over internetprotocol satellite communications of the Monroe Gas Field in Louisiana for Energy to their remote field offices in North America.The 2000 NGC,Inc.The Monroe Field has produced Network will facilitate both data communications more than six trillion cubic feetof gas since its and local "pointof presence"voice communications discovery back in 1919.Formerly the largest with the North American Corporate Headquarters. Natural Gas Field in the world back in the 1970s Deployments are planned to commence in the field has largely been depleted of Gas Reserves "The Verdisys technology will be June,2003. available to traditional drilling methods.Verdisys' lateral drilling technology is being applied to 45 key to unlocking strategic areas AboutApache Corporation: Apache Corporation of the existing wells to access new and existing within the Monroe Gas Field and is a large oil and gas independentwith core deposits to substantially reinvigorate the gas flow operations in the United States,Canada,the UK from the wells.The expectation is to access new bringing the field back to sizable North Sea,Egyptand Western Australia. and existing deposits in the Gas Lock,A.U.Chalk and Harrell Sands zones.Drilling operations commercial production." commenced this week. "The Monroe Field presents a unique opportunity to instantly demonstrate our remarkable lateral drilling technology,"said Dan Williams,President today announced they have been awarded contracts and Chief Executive Officer of Verdisys,Inc."Here to significantly expand satellite coverage for you have a piece of American Oil and Gas history Apache Corporation (NYSE:APA - News) to remote thatwe can re-vitalize and pull outof the ground field offices in Louisiana,New Mexico,Oklahoma gas previously inaccessible by normal cost and additional sites in Texas. effective means." "Verdisys has demonstrated to us thattheir James Spiller,Consulting Geologist,said,"The satellite communications have provided high Verdisys technology will be key to unlocking quality,costeffective solutions to our remote strategic areas within the Monroe Gas Field field offices in Texas"said Reza Esfandi,Senior and bringing the field back to sizable Network Architect,Apache Corporation."We are commercial production." now expanding coverage to other locations in North America and with potential for a Worldwide Network." 14 Press Releases

Verdisys,Inc.Awarded SignificantMonroe Verdisys,Inc.Awarded Over $14M Contract Gas Field ContractExpansion To over by Edge Capital Group $5 Million Success in Monroe Field Leads to Additional Contract Initial Drilling Results Exceed Expectations - Jul 7,2003 Technology Found Applicable to 4 1/2"and 2 7/8"Wells - June 16 ,2003 Verdisys,Inc.of Houston,Texas,a leading provider of patented lateral drilling oil services and satellite Verdisys,Inc.of Houston,Texas,a leading provider solutions for Energy Production Enhancement, of patented lateral drilling oil services and satellite and Reconstruction Data Group,Inc.,a California solutions for Energy Production Enhancement, corporation (OTCBB:RDGI) today announced a and Reconstruction Data Group,Inc.,a California new contractwith Edge Capital Group,a diversified corporation (OTC Bulletin Board:RDGI.OB - News) financial Company,to laterally drill 219 gas wells today announced the expansion of its contractto in the Monroe Field,Louisiana.Lateral drilling can drill partof the Monroe Gas Field in Louisiana for Energy 2000 NGC,Inc.Verdisys' lateral drilling technology has been found to be applicable to both 4 1/2"wells and 2 7/8"wells,doubling the available wells on Energy 2000 property to 102 wells.Lateral drilling can dramatically enhance the gas production Lateral drilling can dramatically of previously depleted shallow gas wells.The total enhance the gas production of value of the contractis projected to be more than $5.1 million. previously depleted shallow "Initial results on the firstwells drilled have been gas wells. excellent,"said Tom Black,Presidentand Chief Executive Officer of Energy 2000 NGC,Inc."We projectthatwe will have a substantial field with over 10 million cubic feetof natural gas production per day and will certainly contribute to solving the currentNatural Gas shortages in dramatically enhance the gas production of North America". previously depleted shallow gas wells.The total value on the contractis projected to be between "We are extremely pleased with the rapid progress $14.2M and $23M. we have made with the initial wells drilled,"said Dan Williams,Presidentand Chief Executive Officer "Edge Capital Group,Inc.,a corporation based in of Verdisys,Inc."These initial results validate the Yorba Linda California,acquired the field specifically Benefits of our proprietary technology and our to deploy the Verdisys technology,"said ScottA. business model." Sossen,CEO of Edge Capital Group,Inc."We estimated the total value of the field after developmentat$100M."Mr.Sossen indicated that a number of similar announcements would be forthcoming in the nextfew weeks and added, 15Press Releases

"If you wantsecurity,integrity and reliability atcosteffective rates,this is the clear-cutdirection." "We are actively looking to acquire small and Verdisys,Inc.of Houston,Texas,a leading provider Verdisys,Inc.Announces Merger medium sized gas fields in the continental United of patented lateral drilling oil services and satellite Completion States and have another 1000 wells in various solutions for Energy Production Enhancement, stages of discussion with our friends atVerdisys." and Reconstruction Data Group,Inc.,a California Reconstruction Data Group,Inc.is Renamed corporation (OTCBB:RDGI) today announced the Verdisys,Inc. - Jul 21,2003 "The Monroe Gas Field has huge gas reserves that availability of its new Voice Over IP (VoIP) and have been previously unrecoverable due to both InternetCommunication Service.These services are Verdisys,Inc.,a leading provider of patented lateral economic and technical hurdles.This particular facilitated through Verdisys' own internal network drilling oil services and satellite solutions for field has 40 wells located on a virgin harrell sand where ithas broughtthe critical technologies Energy Production Enhancementtoday announced reserve thatis largely untapped,"said Dan Williams, together to ensure its customers' mission critical the completion of its merger with Reconstruction Presidentand Chief Executive Officer of Verdisys, information is neither corrupted nor compromised. Data Group,Inc.,a California corporation (OTC Inc."We are finding our lateral drilling methods are The Verdisys VPN implementation is costeffective Bulletin Board:RDGI).The new companies will unlocking these reserves quickly,efficiently and due to existing satellite connections,Wi-Fi and the operate as Verdisys,Inc.,and has applied to the economically.The interestgenerated is leading Internetto provide voice and data communications NASDAQ for a name and ticker symbol change to discussion with operators from California, virtually anywhere in the world.Using the largest reflecting the new name.Following the share Kentucky,Louisiana,Montana,Pennsylvania, available networks of Satellites,Verdisys is able to exchange,Verdisys,Inc.will have 26,603,223 New York and Texas." serve remote locations in North and South common shares issued and outstanding. AboutEdge Capital Group,Inc:Edge Capital Group, America,Europe and mostof Africa. "By going public through this merger transaction, Inc.is a diversified financial company specializing "Our customers,some including the largestoil we have achieved an importantmilestone in our in funding projects in energy and commercial real and gas Companies in the world,are demanding company's history,"said Dan Williams,President estate.To date the company has projects/contracts automated data collection and easy five-digit and Chief Executive Officer of Verdisys,Inc."We totaling approximately $500,000,000.00. For more internal phone dialing from any of their worldwide look forward to creating significanteconomic information visitwww.edgecapitalgroup.com or remote locations,"said Dan Williams,President value for our shareholders.We already have 320 call 877-861-5829 and Chief Executive Officer of Verdisys,Inc. Gas Wells under contractfor our lateral drilling "Satellite communications are much more services,with a significantinterestin back end secure than normal telephone lines and cellular wells production.This business model will result Verdisys,Inc.Announces Availability communications.If you wantsecurity,integrity in sustained long term returns for Verdisys,and of Secure Satellite Voice Over IP and and reliability atcosteffective rates,this is the we anticipate bringing many more wells InternetCommunication Service clear-cutdirection." under contract." VPN is Provided 24x7 with 99.99% Availability Virtually Anywhere in the World - July 14,2003 16 Press Releases

Safe Harbor Statement Verdisys,Inc.Acquires Additional Natural Verdisys,Inc.Announces Key Satellite Statements in this release thatare not Gas Wells and Retention Of Field Executive Appointment historical,are forward looking and involve ManagementCompany known and unknown risks and uncertainties, Industry Veteran to Lead Satellite Communications which may cause Verdisys' actual results in Sales Efforts - Aug 26,2003 future periods to be materially different ContractPartof Planned Monroe Field Expansion from any future performance thatmay be - Aug 28,2003 Verdisys,Inc.of Houston,Texas,(OTC BB:VDYS) a suggested in this release.Such factors may leading provider of patented lateral drilling oil include,butare notlimited to,the need to Verdisys,Inc.of Houston,Texas,(OTC BB:VDYS) a services and satellite solutions for Energy raise equity capital,the ability to obtain leading provider of patented lateral drilling oil Production Enhancement,today announced the equity financing on acceptable terms,if services and satellite solutions for Energy appointmentof Kevin Bailey as Major Accounts atall,a severe worldwide slowdown in the Production Enhancement,today announced the Manager,Satellite Communications.Kevin most energy services sector,working capital acquisition of an additional 40 natural gas wells in recently was Senior AccountManager,New constraints,fluctuations in customer the Monroe,Louisiana area with the prospectof an Systems Sales and Channel Developmentat demand and commitments,fluctuation in additional 80 wells being broughtunder the same SpacenetInc.,a leading provider of satellite-based quarterly results due to the timing of orders contract.The Company acquired the rights to the broadband networking solutions.Kevin previously and our capacity to fulfill them,introduction wells in exchange for a portion of the future worked for Loral Cyberstar,Mitel,Bell Atlantic, of new services,commercial acceptance and production from the wells.The Company is in the Northern Telecom and Fujitsu in various Major viability of new services,cancellations of process of lining up external financing to acquire Accounts/Senior Sales Positions in both domestic orders withoutpenalties,pricing and and finance the field.The financing will include and international sales. competition,reliance upon subcontractors, funding to laterally drill all 120 wells for a the ability of Verdisys' customers to finance minimum value of $7.8 Million. "Verdisys has a unique business model thatreally their purchases of Verdisys' services,the The Company also signed a contractwith TerrOnne focuses on the customers needs by providing timing of new technology and product Petroleum Corporation to provide field management flexible solutions"said Kevin Bailey,Major introductions,and the risk of early and geology services for the 320 natural gas wells Accounts Manager of Verdisys,Inc."Fortune 1000 obsolescence.Further,Verdisys operates in italready has under contractto Verdisys.TerrOnne customers today are demanding increased an industry sector where securities values Petroleum Corporation and its sister Company bandwidth capabilities and diverse services that are highly volatile and may be influenced by have drilled and managed approximately 2,500 fulfill differing communication needs.Verdisys economic and other factors beyond Verdisys' natural gas wells in the Monroe,Louisiana area as has the capability to respond to these demands." control,such as announcements by well as other states,and have extensive experience competitors and service providers. "Kevin's background servicing major accounts with with the natural gas formations there.The Company both domestic and international needs makes him Source:Verdisys Inc. also anticipates the arrival of two new drilling rigs ideal for this position"said Dan Williams,President nextweek to service the planned expansion of its and Chief Executive Officer of Verdisys,Inc. drilling service requirements. "Our customers,some of the largestoil and gas "We continue to focus on expanding our services Companies in the world,are demanding automated in the Monroe field based upon the success we data collection and easy five-digitinternal phone have experienced so far with our lateral drilling dialing from any of their remote locations in the rigs,"said Dan Williams,Presidentand Chief world.Satellite communications are much more Executive Officer of Verdisys,Inc."The Monroe Gas secure than normal telephone lines and Field has huge gas reserves thathave been previously cellular communications." unrecoverable due to both economic and technical hurdles.Verdisys' lateral drilling technology successfully accesses these reserves through the existing depleted well holes and brings them back into production." 17 Press Releases

Verdisys Inc.Selected Work History: 1) Well Name: #1 Langston 31-7 Field: Bluff Field Formation Type: Consolidated Fayette Sandstone Location: Fayette County,Alabama Operator: Moon-Hines-TigrettOperating Co.,Inc. President: Terry A.Tigrett,Jr. 2) Well Name: Betsy-Dixon 23-6 #1 Field: South Kennedy Formation Type: Consolidated FayetteSandstone Location: Lamar County,Alabama Operator: Moon-Hines-TigrettOperating Co.,Inc. President: Terry A.Tigrett 3) Well Name: Coil Salmon Jackson No.1 Field: Isley Field, Formation Type: Mississippi Limestone Location: Isley,Kentucky Operator: UnitInc Management,Inc. Supervisor: Roger Noffsinger 4) Well Name: Wool #60 Field: Caddo Pine Island Field Formation Type: Paluxy Sandstone Location: Oil City,Louisiana Operator: OMDA Oil and Gas,Inc. Field Super: Randy Hatfield Verdisys Inc's Lateral Drilling has been successful in limestone,fractured limestone,chalk limestone,natural porosity limestone,dolometric limestone,sandstone,consolidated sandstone,unconsolidated sandstone,very low porosity (tight) sandstone,shale (oil & gas), devonian age fractured shale,saltdome,and coal seam.Verdisys also has been very successful with low gravity (heavy) oil. Whatappears to be more importantthan the formation type, is the need for drive sufficientto move the petroleum product. Production Before Lateral Drilling: o December 1998,producing 83,000 cfgd o January 1999,Lateral Drilled Well After Lateral Drilling: 600% Increase in Production: o February 1999, Production increased to 496,000 cubic feetgas o December 2002,4 years later,after a gradual decline,production is steady at150,000 cfgd Production Before Lateral Drilling: o July 2002:Producing 62,000 cfgd After Lateral Drilling: 450% Increase in Production: o September 2002:Producing 274,000 cfgd (As of the end of January 03, only thru September 02 production posted of public record) Before Lateral Drilling: o December 1999:Producing 0 bopd (well shut-in for 3 years) After Lateral Drilling: 1200% Increase in Production: o June 2003: Producing 6 bopd ,itis expected for production to continue at5 to 8 bopd, yielding a 1000% to 1600% increase. Before Lateral Drilling: o December 2002: Producing 5000 cfgd After Lateral Drilling: 4000% Increase in Production: o December 2002: 40,000 cfgd,then after acid clean up, o February 2003,production has increased (4000%) to 200,000 cfgd,and as of June 2003,production holds at200,000 cfgd. History: 2100'well drilled in 2000,stuck atpay zone,pumped 750 bags of cement, perforated and fraced,broughtproduction to 5000 cfgd,produced atthatrate for 3 years until Lateral Drilling,now 200,000 cfgd after Lateral Drilling,and acid clean up. 18 Verdisys Work History

5) Well Name: South Hospah Well #35 Field: South Hospah Field Formation Type: Consolidated Sandstone Location: McKinley County,New Mexico Operator: B.C.& D.Oil and Gas Corporation,Inc. President: Don Hill 6) Well Name: South Hospah Well # 53 Field: South Hospah Field Formation Type: Consolidated Sandstone Location: McKinley County,New Mexico Operator: B.C.& D.Oil and Gas Corporation,Inc. President: Don Hill 7) Well Name: Corley #4 Field: South Green Field Formation Type: Bethel Sandstone,Lower Mississippi Location: Muhlenberg County,Kentucky Operator: Vogler Drilling Co. President: John F.Vogler 8) Well Name: Z 17 Field: Richfield Field Formation Type: Unconsolidated Sandstone,Kramer Miocene Location: Placentia,California Operator: Saba Petroleum,Inc. Consulting Eng: Stan W.Brown 9) Well Name: Z 18 Field: Richfield Field Formation Type: Unconsolidated Sandstone,Kramer Miocene Location: Placentia,California Operator: Saba Petroleum,Inc. Consulting Eng: Stan W.Brown Before Lateral Drilling: o September 1996: Producing 1/2 bopd After Lateral Drilling: 1600% Increase in Production: o October 1996,Producing 10 bopd,fell to 8 bopd within the year,has held to date, o March 2003,8 bopd (over 6 years of steady production atthe increased rate) Before Lateral Drilling: September 1996,Producing 1/2 bopd After Lateral Drilling: 2000% Increase in Production: o October 1996,Produced 13 bopd,fell to 10 bopd within the year,has held to date, o March 2003,Producing 10 bopd (over 6 years of steady production atincreased rate) Before Lateral Drilling: o 1985: Plugged & Abandoned: prior to P & A,well was producing less than 1 bopd After Lateral Drilling: 700% Increase in Production: o October 5,1999: had flush production of 14 bopd,then settled within 3 to 5 months to 7 bopd (for 3 years has maintained 7 bopd). Before Lateral Drilling: o September 1996: producing at7 bopd After Lateral Drilling: o October 1996: flush production of over 100 bopd,long term production unknown (Saba sold to unknown entity) Before Lateral Drilling: o October 1996: producing at7 bopd After Lateral Drilling: 329% Increase in Production: o December 1996:produced at23 bopd 19 Verdisys Work History