EXHIBIT 99.1


      VERDISYS, INC. REVISES REVENUE PROJECTIONS AND FINANCIAL DISCLOSURES


Houston, Texas - January 5, 2004: VERDISYS, INC. of The Woodlands, Texas,
(OTCBB: VDYS.OB - News) a leading provider of patented lateral drilling oil
services and satellite solutions for energy production enhancement, today
revised its revenue forecast for the quarter ended December 31, 2003 and
projected revenues for 2004 previously disclosed in its form 8K filing dated
November 17, 2003. The revenue forecast for the quarter ended December 31, 2003
is revised downwards to $636,000. The Company has determined that the ability
and/or willingness to pay of certain of its customers, and in particular Edge
Capital Group, Inc., have adversely affected its revenue forecast and backlog.
The Company is in a dispute with Edge Capital regarding its obligation to pay
the prior amounts of $1,496,000 for drilling under the lateral drilling service
agreement with Edge Capital during the third quarter of 2003. The Company has
not recognized any revenue not received under such contracts, and is attempting
to reach a mutually agreeable resolution to such dispute. An announcement will
be made at such time as an agreement has been reached, however, there can be no
assurance that a mutually agreeable resolution will be reached.
Consequently the Company is revising its projections to recognize revenue from
such customers. The Company has also revised its revenue projections for fiscal
year 2004 as follows:

                   1Q04      2Q04      3Q04      4Q04      FY04
                   ----      ----      ----      ----      ----

Revenue (`000s)    $813     $1,675    $4,097    $7,364    $13,949
                   ----     ------    ------    ------    -------

Such revenue projections may be revised depending upon the resolution of certain
contract disputes for which the Company is considering all the various options
available to it. The Company is in the process of revising its projections for
fiscal year 2005 and is withdrawing any prior projections until such time as the
new projections are available. Based upon the revised revenue projections the
Company anticipates that it will be profitable in the quarter ending June 30,
2004.

The Company has four company owned lateral drilling rigs as of January 1, 2004
as well as two rigs available on a rental basis. The current rig count is
considered sufficient to meet all the Company's lateral drilling service
requirements through the third quarter of 2004.

About Verdisys, Inc.

Verdisys, Inc. provides proprietary oil services and solutions for energy
production enhancement including patented lateral drilling technologies and
secure satellite communications. In the U.S. and Canada, Verdisys provides oil
and gas companies with a patented lateral drilling service utilizing specially
fabricated mobile drilling rigs. These services have had more than a decade of
proven success in dramatically increasing the production of oil and gas wells.
Verdisys has also developed and markets unique, high



quality and cost effective satellite communication capabilities that provide
energy companies access to remote sites. The Company's focus in this area is on
monitoring and control of applications involving SCADA (Supervisory Control and
Data Acquisition) implementations in the areas of oil and gas exploration,
production, power distribution and other energy management applications.

For more information visit www.verdisys.com or call 281-364-6999
Safe Harbor Statement

Statements in this release that are not historical, are forward looking and
involve known and unknown risks and uncertainties, which may cause Verdisys'
actual results in future periods to be materially different from any future
performance that may be suggested in this release. Such factors may include, but
are not limited to, the need to raise equity capital, the ability to obtain
equity financing on acceptable terms, if at all, a severe worldwide slowdown in
the energy services sector, working capital constraints, fluctuations in
customer demand and commitments, fluctuation in quarterly results due to the
timing of orders and our capacity to fulfill them, introduction of new services,
commercial acceptance and viability of new services, cancellations of orders
without penalties, pricing and competition, reliance upon subcontractors, the
ability of Verdisys' customers to pay for Verdisys' services, the timing of new
technology and product introductions, and the risk of early obsolescence.

CONTACT:
Investor/Company Contact: Andrew Wilson, Chief Financial Officer, Verdisys, Inc.
(510)-749-0836 or awilson@verdisys.com

Media Contact: Sinan Kanatsiz, Account Executive, K-Comm, Inc. (949)-443-9300
or sinan@kanatsiz.com