---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-QSB

(Mark One)

[ x ] Quarterly Report Pursuant To Section 13 Or 15(d) Of The
  Securities Exchange Act Of 1934

For the quarterly period ended September 30,
2006

[]
  Transition Report Under Section 13 Or 15(d) Of The Securities Exchange Act Of
  1934

For the transition period ________to ________

COMMISSION FILE NUMBER000-50459

EXPLORATION DRILLING INTERNATIONAL
INC.(Exact name of small business issuer as specified in its
charter)

|NEVADA                                           | 98-0396733                       
|------------------------------------------------ | ---------------------------------
|(State or other jurisdiction of incorporation or | (IRS Employer Identification No.)
|organization)                                    |                                  

810 Peace Portal Drive, Suite 212 Blaine, WA
98230(Address of principal executive offices)

(360) 305-5696Issuer's telephone number

Invision Capital, Inc.(Former name, former
address and former fiscal year, if changed since last report)

Check whether the issuer (1) filed all reports required to be
  filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or
  for such shorter period that the registrant was required to file such reports),
  and (2) has been subject to such filing requirements for the past 90 days. Yes
  [ x ]No []

Indicate by check mark whether the registrant is a shell company
  (as defined in Rule 12b-2 of the Exchange Act). Yes []
  No [ x ]

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date: As of November
13, 2006, the Issuer had 102,706,285 Shares of Common Stock outstanding.

Transitional Small Business Disclosure Format (Check one): Yes
  []
  No [ x ]

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

2

---

EXPLORATION DRILLING INTERNATIONAL
  INC.

(formerly Invision Capital, Inc.)

(A Development Stage Company)

CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

September 30, 2006
  (Unaudited)

---

|EXPLORATION DRILLING INTERNATIONAL INC.
|---------------------------------------
|(formerly Invision Capital, Inc.)      
|(A Development Stage Company)          
|CONSOLIDATED BALANCE SHEET             
|(Expressed in U.S. Dollars)            
|(Unaudited)                            

|                                                               |   | September 30, |  
|-------------------------------------------------------------- | - | ------------- | -
|                                                               |   | 2006          |  
|                                                               |   |               |  
|                                                               |   |               |  
|ASSETS                                                         |   |               |  
|                                                               |   |               |  
|Current Assets                                                 |   |               |  
|Cash and cash equivalents                                      | $ | 504,363       |  
|Other receivables                                              |   | 180,007       |  
|Loans receivable (Note 7)                                      |   | 234,848       |  
|Prepaid expenses                                               |   | 106,624       |  
|Deferred
      tax asset, less valuation allowance of $872,855 |   | -             |  
|Total Current Assets                                           |   | 1,025,842     |  
|                                                               |   |               |  
|Equipment (Note 4)                                             |   | 227,554       |  
|Patents
      (Note 4)                                         |   | 315,382       |  
|                                                               |   |               |  
|Total Assets                                                   | $ | 1,568,778     |  
|                                                               |   |               |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                          |   |               |  
|                                                               |   |               |  
|Current Liabilities                                            |   |               |  
|Accounts payable and accrued
      liabilities                 | $ | 579,222       |  
|Loans
      payable -current (Notes 5 and 7)                   |   | 809,270       |  
|Total Current Liabilities                                      |   | 1,388,492     |  
|                                                               |   |               |  
|Loans payable (Notes 6 and 7)                                  |   | 677,056       |  
|                                                               |   |               |  
|Total Liabilities                                              |   | 2,065,548     |  
|                                                               |   |               |  
|Commitments (Note 11)                                          |   |               |  
|                                                               |   |               |  
|Stockholders Deficit                                          |   |               |  
|Common stock (Note 8)                                          |   |               |  
|Authorized                                                     |   |               |  
|1,000,000,000
      common shares, par value $0.001            |   |               |  
|Issued and
      outstanding                                   |   |               |  
|102,706,285                                                    |   | 102,706       |  
|Additional paid-in capital                                     |   | 4,529,962     |  
|Accumulated other comprehensive loss:                          |   |               |  
|Foreign
      currency cumulative translation adjustment       |   | 4,189         |  
|Deficit
      accumulated during the development stage         |   | (5,133,627    | )
|Total Stockholders Deficit                                    |   | (496,770      | )
|                                                               |   |               |  
|Total Liabilities and Stockholders Deficit                    | $ | 1,568,778     |  

The accompanying notes are an integral part of these consolidated
  financial statements.

F-2

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|EXPLORATION DRILLING INTERNATIONAL INC.                           
|------------------------------------------------------------------
|(formerly Invision Capital, Inc.)                                 
|(A Development Stage Company)                                     
|CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
      LOSS
|(Expressed in U.S. Dollars)                                       
|(Unaudited)                                                       

CumulativeAmounts
      
      
      Nine
      
      
      Nine
      
      
      Three
      
      
      ThreeFrom Inception
      
      
      Months
      
      
      Months
      
      
      Months
      
      
      Months(December 7, 2004)
      
      
      Ended
      
      
      Ended
      
      
      Ended
      
      
      Endedto September 30,
      
      
      September 30,
      
      
      September 30,
      
      
      September 30,
      
      
      September 30,2006
      
      
      2006
      
      
      2005
      
      
      2006
      
      
      2005EXPENSESProfessional and management
        fees
      $
      826,943
      
      $
      714,036
      
      $
      129,708
      
      $
      181,538
      
      $
      114,899Other operating expenses
      
      1,743,738
      
      
      1,000,867
      
      
      314,594
      
      
      371,199
      
      
      237,089Stock compensation expense
      
      2,566,405
      
      
      2,566,405
      
      
      -
      
      
      -
      
      
      -Foreign
        currency loss
      
      6,166
      
      
      4,124
      
      
      207
      
      
      3,639
      
      
      (318
      )LOSS BEFORE OTHER ITEMAND INCOME TAXES
      
      5,143,252
      
      
      4,285,432
      
      
      444,509
      
      
      556,376
      
      
      351,670OTHER ITEMInterest
        income
      
      9,625
      
      
      9,291
      
      
      31
      
      
      3,252
      
      
      31LOSS BEFORE INCOME TAXES
      
      5,133,627
      
      
      4,276,141
      
      
      444,478
      
      
      553,124
      
      
      351,639Provision
        for income taxes
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -NET LOSS
      
      5,133,627
      
      
      4,276,141
      
      
      444,478
      
      
      553,124
      
      
      351,639OTHER COMPREHENSIVE INCOMEForeign currency translation adjustment
      
      4,189
      
      
      9,129
      
      
      -
      
      
      36,491
      
      
      -COMPREHENSIVE LOSS
      $
      5,129,438
      
      $
      4,267,012
      
      $
      444,478
      
      $
      516,633
      
      $
      351,639BASIC AND DILUTED NET LOSSPER SHARE
      
      
      
      $
      (0.05
      )
      $
      (0.01
      )
      $
      (0.01
      )
      $
      (0.01
      )WEIGHTED AVERAGE NUMBER OFCOMMON
        SHARES OUTSTANDING
      
      
      
      
      80,751,812
      
      
      51,992,000
      
      
      102,007,528
      
      
      51,992,000


The accompanying notes are an integral part of these consolidated
  financial statements.

F-3

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|EXPLORATION DRILLING INTERNATIONAL INC.                           
|------------------------------------------------------------------
|(formerly Invision Capital, Inc.)                                 
|(A Development Stage Company)                                     
|CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
      LOSS
|(Expressed in U.S. Dollars)                                       
|(Unaudited)                                                       

CumulativeAmounts
      
      
      Nine
      
      
      NineFrom Inception
      
      
      Months
      
      
      Months(December 7, 2004)
      
      
      Ended
      
      
      Endedto September 30,
      
      
      September 30,
      
      
      September 30,2006
      
      
      2006
      
      
      2005CASH FLOWS FROM OPERATING ACTIVITIESNet loss for the period
      $
      (5,133,627
      )
      $
      (4,276,141
      )
      $
      (444,478
      )Adjustments to reconcile net income to cash
        used in development stage activities:Amortization
      
      52,113
      
      
      38,556
      
      
      -Stock compensation expense
      
      2,566,405
      
      
      2,566,405
      
      
      -Change in operating assets and liabilities:Increase in other receivables
      
      (92,352
      )
      
      (92,352
      )
      
      -Increase in other assets and prepaid
        expense
      
      (287,450
      )
      
      -
      
      
      (89,472
      )Increase in prepaid expenses
      
      (104,527
      )
      
      (104,527
      )
      
      -Increase in accounts payable and accrued
        liabilities
      
      387,705
      
      
      387,705
      
      
      -Increase in trade, other and accrued
        liabilities
      
      149,939
      
      
      -
      
      
      26,963Net cash used in operating activities
      
      (2,461,794
      )
      
      (1,480,354
      )
      
      (506,987
      )CASH FLOWS FROM INVESTING ACTIVITIESProceeds from loans receivable
      
      25,744
      
      
      25,744
      
      
      -Acquisition of equipment
      
      (279,667
      )
      
      (113,602
      )
      
      (66,287
      )Acquisition of patents
      
      (315,382
      )
      
      (265,080
      )
      
      -Net cash used in investing activities
      
      (569,305
      )
      
      (352,938
      )
      
      (66,287
      )CASH FLOWS FROM FINANCING ACTIVITIESCash acquired from Invision
        Capital, Inc.
      
      81,587
      
      
      81,587
      
      
      -Issuance of capital stock for cash
      
      546,833
      
      
      500,000
      
      
      12,731Proceeds of funds to
        additional paid-in capital
      
      1,585,998
      
      
      301,190
      
      
      487,364Proceeds
        from loans payable
      
      1,311,758
      
      
      1,311,758
      
      
      61,869Net
        cash provided by financing activities
      
      3,526,176
      
      
      2,194,535
      
      
      561,964Provision
        for income taxes
      
      -
      
      
      -
      
      
      -EFFECT OF FOREIGN CURRENCY TRANSLATION ONCASH AND CASH EQUIVALENTS DURING THE PERIOD
      
      9,286
      
      
      14,226
      
      
      (5,067
      )NET INCREASE (DECREASE) IN CASH
      
      504,363
      
      
      375,469
      
      
      (16,377
      )CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
      
      -
      
      
      128,894
      
      
      41,749CASH AND CASH EQUIVALENTS, END OF PERIOD
      $
      504,363
      
      $
      504,363
      
      $
      25,372CASH PAID FOR:Interest
      $
      38,568
      
      $
      37,564
      
      $
      173Income taxes
      $
      -
      
      $
      -
      
      $
      -


The accompanying notes are an integral part of these consolidated
  financial statements

F-4

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|1. | HISTORY AND ORGANIZATION OF THE COMPANY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | Exploration Drilling International Inc. (formerly Invision
        Capital, Inc.) (the Company) was incorporated on January 24,
        2003, under the Laws of the State of Nevada and was in the business of
        acquiring, exploring and developing mineral properties. Effective April
        26, 2006, the Company acquired 100% of the issued and outstanding shares
        of EDI Exploration Drilling International GmbH (EDI), a company
        engaged in the distribution and maintenance of water exploration machinery
        and equipment and the provision of related services. The Company has abandoned
        its mineral property acquisition and exploration activities in order to
        focus its resources on the development and marketing of EDIs proprietary
        technology. The Company is considered to be a development stage company,
        as it has not generated revenues from operations.                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | Effective April 26, 2006, the Company acquired 100%
        of the issued and outstanding shares of EDI from EDI Exploration International
        Drilling Holding GmbH (EDI Holding) in exchange for an aggregate
        of 50,000,000 shares of the Companys common stock. In addition,
        Frank Rigney transferred 20,000,000 shares of the Companys common
        stock already issued and outstanding prior to the transaction to EDI Holding
        in exchange for $10,000. Completion of the acquisition resulted in the
        former sole shareholder of EDI holding the majority of the Companys
        issued and outstanding common stock. As a result, the transaction was
        accounted for as a recapitalization of EDI.                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | The unaudited consolidated statements of operations
        and cash flows of the Company prior to April 26, 2006 are those of EDI.
        The Companys date of incorporation is considered to be December
        7, 2004, the date of inception of EDI.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | These financial statements have been prepared in conformity
        with generally accepted accounting principles in the United States of
        America for interim financial information. The accompanying consolidated
        financial statements do not include all information and footnote disclosures
        required for an annual set of financial statements prepared under United
        States of America generally accepted accounting principles. In the opinion
        of management, all adjustments (consisting solely of normal recurring
        accruals) considered necessary for a fair presentation of financial position,
        results of operations and cash flows as at September 30, 2006 and for
        all periods presented, have been included. Interim results for the period
        ended September 30, 2006 are not necessarily indicative of the results
        that may be expected for the fiscal year as a whole.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|2. | GOING CONCERN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | These consolidated financial statements have been prepared
        with the on-going assumption that the Company will be able to realize
        its assets and discharge its liabilities in the normal course of business.
        However, certain conditions noted below raise substantial doubt about
        the Companys ability to continue as a going concern. These financial
        statements do not include any adjustments to the amounts and classifications
        of assets and liabilities that might be necessary should the Company be
        unable to continue as a going concern.                                                                                                                                                                                                                                                                                                                                                        

F-5

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|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|2. | GOING CONCERN (continued)
|-- | -------------------------

The operations of the Company have primarily
  been funded by the sale of common stock and loans received. Continued operations
  of the Company are dependent on the Companys ability to complete equity
  financings or generate profitable operations in the future. Managements
  plan in this regard is to secure additional funds through future equity financings.
  Such financings may not be available or may not be available on reasonable terms
  to the Company.

|3. | SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The financial statements of the Company have
        been prepared in conformity with generally accepted accounting principles
        in the United States of America and are stated in US dollars. The significant
        accounting policies adopted by the Company are as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The preparation of financial statements in
        conformity with generally accepted accounting principles in the United
        States requires management to make estimates and assumptions that affect
        the reported amount of assets and liabilities and the disclosure of contingent
        assets and liabilities at the date of the financial statements and the
        reported amount of revenues and expenses during the reporting period.
        Actual results could differ from these estimates.                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The functional currency of the Company is
        the United States dollar. The Companys subsidiary, EDI, uses the
        Euro as its functional currency. Accordingly, monetary assets and liabilities
        denominated in a foreign currency are translated at the exchange rate
        in effect at the balance sheet date while non-monetary assets and liabilities
        are translated at historical rates. Revenue and expense items denominated
        in a foreign currency are translated at exchange rates prevailing when
        such items are recognized in the statement of operations. Exchange gains
        and losses arising on translation of foreign currency items are included
        in the statement of operations.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The Company follows the current rate method
        of translation with respect to its foreign subsidiary. Accordingly, assets
        and liabilities are translated into U.S. dollars at the period-end exchange
        rates while revenue and expenses are translated at the average exchange
        rates during the period. Related exchange gains and losses are included
        in a separate component of stockholders equity as accumulated other
        comprehensive income.                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The Company considers cash held at banks and
        all highly liquid investments with original maturities of three months
        or less to be cash and cash equivalents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

F-6

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|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|3. | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                         
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                     
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                     
|   | Prepaid expenses consist primarily of prepaid
        vehicle lease and travel expenses.                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                     
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                     
|   | Other receivables consist primarily of Value
        Added Tax in Germany.                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                     
|   | (f)                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                     
|   | Equipment is recorded at cost and consists
        of a well system, technical equipment and machinery, a building, a vehicle
        and office and other equipment. Depreciation is calculated using the straight-line
        method over the useful lives of the assets. Maintenance and repairs are
        expensed as incurred while betterments or renewals are capitalized.
|   |                                                                                                                                                                                                                                                                                                                                                                                     
|   | The Company provides for depreciation over
        the estimated life of each asset on a straight-line basis over the following
        periods:                                                                                                                                                                                                                                    

Well system
      20 yearsTechnical equipment and machinery
      3-8 yearsVehicle
      4 yearsOffice and other equipment
      3-8 years


No depreciation for the architectural
  plans is provided for as construction has not yet been completed.

| | (g)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Patents                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                 
| | Patents and patent applications
        are recorded at cost. Capitalized amounts relate solely to legal and advisory
        costs incurred in registration of the patents. Depreciation is calculated
        using the straight-line method over the useful lives of the assets. No
        depreciation is provided for as the patents have not yet been awarded
        and/or begun to generate revenues.                                                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                 
| | (h)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Accounting for the impairment of long-lived assets and long-lived
      assets to be disposed of
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                 
| | The Company reviews all
        long-lived assets for impairment whenever events or changes in circumstances
        indicate that the carrying amount of an asset may not be recoverable.
        Recoverability of assets to be held and used is measured by a comparison
        of the carrying amount of an asset to future net cash flows expected to
        be generated by the asset. If such assets are considered to be impaired,
        the impairment recognized is measured by the amount by which the carrying
        amount of the assets exceeds the fair value of the assets. Assets to be
        disposed of are reported at the lower of the carrying amount or fair value
        less costs to sell.

F-7

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|3. | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | A deferred tax asset or liability is recorded
        for all temporary differences between financial and tax reporting and
        net operating loss carryforwards. Deferred tax expenses (benefits) result
        from the net change during the period of deferred tax assets and liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Deferred tax assets are reduced by a valuation
        allowance when, in the opinion of management, it is more likely than not
        that some portion or all of the deferred tax assets will not be realized.
        Deferred tax assets and liabilities are adjusted for the effects of changes
        in tax laws and rates on the date of enactment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | (j)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The Company's financial instruments consist
        of cash and cash equivalents, loans receivable, other receivables, accounts
        payable and accrued liabilities and loans payable. Unless otherwise noted,
        it is management's opinion that the Company is not exposed to significant
        interest, currency or credit risks arising from these financial instruments.
        The fair value of these financial instruments approximates their carrying
        values, unless otherwise noted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | (k)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Prior to January 1, 2006, the Company accounted
        for our employee stock option plans under the intrinsic value method in
        accordance with the provisions of Accounting Principles Board ("APB")
        Opinion No. 25, "Accounting for Stock Issued to Employees" ("APB No. 25")
        and related interpretations. As such, compensation expense under fixed
        term option plans is recorded at the date of grant only to the extent
        that the market value of the underlying stock at the date of grant exceeds
        the exercise price. Additionally, in periods prior to January 1, 2006,
        in accordance with SFAS No. 123 "Accounting for Stock-Based Compensation"
        ("SFAS 123"), since the Company has continued to apply the principles
        of APB 25 to employee stock compensation, pro forma loss and pro forma
        loss per share information has been presented as if the options had been
        valued at their fair values. The Company recognizes compensation expense
        for stock options, common stock and other equity instruments issued to
        non-employees for services received based upon the fair value of the services
        or equity instruments issued, whichever is more reliably determined. Stock
        compensation expense is recognized as the stock option is earned, which
        is generally over the vesting period of the underlying option.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Effective January 1, 2006, the Company adopted
        SFAS No. 123(R), "Share-Based Payment" ("SFAS 123(R)") and related interpretations
        which superseded APB No. 25. SFAS 123(R) requires that all stock-based
        compensation be recognized as an expense in the financial statements and
        that such cost be measured at the fair value of the award. This statement
        was adopted using the modified prospective method, which requires the
        Company to recognize compensation expense on a prospective basis. Therefore,
        prior period financial statements have not been restated. Under this method,
        in addition to reflecting compensation expense for new share-based awards,
        expense is also recognized to reflect the remaining service period of
        awards that had been included in pro-forma disclosures in prior periods.
        Had expense been recognized using the fair value method                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

F-8

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|3. | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | (k)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | described in SFAS 123 (R), using the Black-Scholes
        option-pricing model, the results of operations would have remained unchanged
        because no options have been granted in the comparative periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | (l)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Basic net loss per share is computed by dividing
        the net loss for the period by the weighted average number of shares of
        common stock outstanding during the period. Diluted earnings per share
        takes into consideration shares of common stock outstanding (computed
        under basic earnings per share) and potentially dilutive shares of common
        stock. As of September 30, 2006 and 2005, there were no potentially dilutive
        securities outstanding.                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | (m)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The Company has adopted SFAS 130, Reporting
        of Comprehensive Income,which establishes guidelines for the
        reporting and display of comprehensive income (loss) and its components
        in financial statements. Comprehensive income (loss) includes foreign
        currency translation adjustments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | (n)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The Company is a development stage company
        as defined in SFAS 7, Accounting and Reporting by Development
        Stage Enterprises,as it is devoting substantially all of its
        efforts to establish a new business and planned principal operations have
        not yet commenced.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | (o)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | In December 2004, FASB issued SFAS No. 153
        to amend Opinion 29 by eliminating the exception for non- monetary exchanges
        of similar productive assets and replaces it with general exception for
        exchanges of non- monetary assets that do not have commercial substance.
        A non-monetary exchange is defined to have commercial substance if the
        future cash flows of the entity are expected to change significantly as
        a result of the exchange. The provision of this Statement is effective
        for non-monetary asset exchanges occurring in fiscal periods beginning
        after June 15, 2005, and should be applied prospectively                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | In June 2005, the FASB issued Statement 154,
        Accounting Changes and Error Corrections,which replaces
        APB Opinion 20 and FASB Statement 3. Statement 154 changes the requirements
        for the accounting and reporting of a change in accounting principle.
        Opinion 20 previously required that most voluntary changes in accounting
        principles be recognized by including the cumulative effect of the new
        accounting principle in net income of the period of change. Statement
        154 now requires retrospective application of changes in accounting principle
        to prior period financial statements, unless it is impractical to determine
        either the period- specific effects or the cumulative effect of the change.
        The statement is effective for fiscal years beginning after December 15,
        2005.

F-9

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|3. | SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                     
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                 
|   | (o)                                                                                                                                                             
|   |                                                                                                                                                                 
|   | The Company does not expect that the adoption
        of these new accounting pronouncements will have a significant effect
        on its financial statements.
|   |                                                                                                                                                                 
|   | (p)                                                                                                                                                             
|   |                                                                                                                                                                 
|   | Certain amounts reported in the prior periods
        have been reclassified to conform to the current periods presentation.                                   
|   |                                                                                                                                                                 
|4. | EQUIPMENT AND PATENTS                                                                                                                                           
|   |                                                                                                                                                                 
|   | Equipment                                                                                                                                                       

| |                                   |   | September 30, |  
| | --------------------------------- | - | ------------- | -
| |                                   |   | 2006          |  
| |                                   |   |               |  
| | Architectural plans               | $ | 17,819        |  
| |                                   |   |               |  
| | Well system                       |   | 1,777         |  
| | Technical equipment and machinery |   | 228,097       |  
| | Vehicle                           |   | 12,251        |  
| | Office and other equipment        |   | 19,723        |  
| |                                   |   | 261,848       |  
| | Accumulated amortization          |   | (52,113       | )
| |                                   |   | 209,735       |  
| |                                   |   |               |  
| | Net book value                    | $ | 227,554       |  

During the period ended September 30,
  2006, the Company did not amortize its architectural plans as construction has
  not yet been completed. The net carrying amount of architectural plans not being
  amortized was $17,819 as of September 30, 2006.

F-10

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|4. | EQUIPMENT AND PATENTS (continued)
|-- | ---------------------------------
|   |                                  
|   | Patents                          

| |                          |   | September 30, | 
| | ------------------------ | - | ------------- | 
| |                          |   | 2006          | 
| |                          |   |               | 
| | Patents                  | $ | 315,382       | 
| | Accumulated amortization |   | -             | 
| |                          |   |               | 
| | Net book value           | $ | 315,382       | 

During the period ended September 30,
  2006, the Company did not amortize its patents as the patents have not yet been
  awarded and/or they have not begun to generate revenues. The net carrying amount
  of patents not being amortized was $315,382 as of September 30, 2006.

In the event that facts and circumstances
  indicate that the carrying amount of an asset may not be recoverable and an
  estimate of future undiscounted cash flows is less than the carrying amount
  of the asset, an impairment loss will be recognized. Management's estimates
  of revenues, operating expenses, and operating capital are subject to certain
  risks and uncertainties which may affect the recoverability of the Company's
  investments in its assets. Although management has made its best estimate of
  these factors based on current conditions, it is possible that changes could
  occur which could adversely affect management's estimate of the net cash flow
  expected to be generated from its operations.

|5. | LOANS PAYABLE -CURRENT
|-- | ----------------------

During the nine months ended September
  30, 2006, several loans were granted from a third party individual totaling
  Euro 350,000 (US -$443,993). The loans bear interest of 6% per annum and are
  due as follows:

Principal
      Due DateEuro 125,000 (US -$158,569)
      March 31, 2007Euro 125,000 (US -$158,569)
      March 31, 2007Euro 100,000 (US -$126,855)
      June 13, 2007


During the nine months ended September
  30, 2006, a loan was granted from a third party individual for Euro 23,000 (US
  -$29,177). The loan bears interest at 7% per annum and has no specific terms
  for repayment.

During the nine months ended September
  30, 2006, two loans were granted from a third party individual for Euro 20,000
  (US -$25,371) and Euro 15,000 (US -$19,028). The loans bear interest at 5% per
  annum and are due December 31, 2006.

F-11

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|6. | LOANS PAYABLE
|-- | -------------

During the nine months ended September
  30, 2006, a loan was granted from a third party company for $100,000. The loan
  bears interest at 8% per annum, compounded annually, and is due March 20, 2008.

During the nine months ended September
  30, 2006, several loans were granted from a third party company totaling $550,000.
  The loans bear interest at 8% per annum, compounded annually, and are due as
  follows:

Principal
      Due Date$250,000
      May 15, 2008$100,000
      July 17, 2008$200,000
      July 28, 2008


|7. | RELATED PARTY TRANSACTIONS
|-- | --------------------------

Loans Receivable

During the nine months ended September
  30, 2006, several loans were granted to former shareholders of EDI totaling
  Euro 24,640 (US -$31,257). The loans bear interest at 3% per annum and are due
  December 31, 2006.

During the nine months ended September
  30, 2006, a loan was granted to an officer and director of the Company and a
  managing director of EDI, for Euro 2,860 (US -$3,628). The loan bears interest
  at 3% per annum and is due on December 31, 2006.

During the year ended December 31, 2005,
  a loan was granted to a former shareholder of EDI for Euro 10,000 (US -$12,685).
  The loan bears interest at 6% per annum and is due on December 31, 2006.

During the year ended December 31, 2005,
  a loan was granted to an officer and director of the Company and a managing
  director of EDI, for Euro 115,000 (US -$145,883). The loan bears interest at
  6% per annum and is due on December 31, 2006.

During the year ended December 31, 2005,
  a loan was granted to an officer and director of the Company and a managing
  director of EDI, for Euro 25,000 (US -$31,714). The loan bears interest at 6%
  per annum and is due on December 31, 2006.

Loans Payable -Current

During the nine months ended September
  30, 2006, a loan was granted from a company with a shareholder related to an
  officer and director of the Company and a managing director of EDI, for Euro
  90,000 (US -$114,169). The loan bears interest of 6% per annum and is due March
  31, 2007.

F-12

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|7. | RELATED PARTY TRANSACTIONS (continued)
|-- | --------------------------------------

Loans Payable Current (continued)

During the year ended December 31, 2005,
  a loan was granted from an officer and director of the Company and a managing
  director of EDI, for Euro 36,000 (US -$45,668). During the nine months ended
  September 30, 2006, an additional loan for Euro 50,000 (US -$63,427) was granted.
  The loans are non-interest bearing and have no specific terms for repayment.

During the year ended December 31, 2005,
  a loan was granted from an individual related to an officer and director of
  the Company and a managing director of EDI, for Euro 5,000 (US -$6,343) and
  bears interest at 6% per annum. During the nine months ended September 30, 2006,
  an additional loan was granted for Euro 12,000 (US -$15,223) and bears interest
  at 5% per annum. The loans are due on December 31, 2006.

During the nine months ended September
  30, 2006, a loan was granted from EDI Holding for Euro 20,000 (US -$25,371).
  The loan is non-interest bearing and is due on demand.

Loans Payable

During the year ended December 31, 2004,
  a loan was granted from an individual related to an officer and director of
  the Company and a managing director of EDI, for Euro 8,000 (US -$10,148). The
  loan bears interest at 7% annum and is due on December 31, 2009.

Other

Consulting fees paid to an officer of
  the Company for the nine and three months ended September 30, 2006 totaled $5,000
  and $3,000 respectively. Management fees paid to the managing directors of EDI
  for the nine and three months ended September 30, 2006 totaled Euro 191,200
  (US -$237,775) and Euro 71,200 (US -$90,758) respectively. Lease fees for office
  space paid to an individual related to an officer and director of the Company
  and a managing director of EDI, for the nine and three months ended September
  30, 2006 totaled Euro 9,820 (US -$12,212) and Euro 3,273 (US -$4,172) respectively.

|8. | COMMON STOCK
|-- | ------------

The Companys articles of incorporation
  allow it to issue up to 1,000,000,000 shares of common stock, par value $0.001.
  Effective March 9, 2006, the Company effected a stock split of its common stock
  by issuing five new shares for every one old share. Except as otherwise stated
  to the contrary in these financial statements, all references to shares and
  prices per shares have been adjusted to give retroactive effect to the stock
  split.

On December 7, 2004, the Company issued
  50,000,000 shares of common stock for total proceeds of Euro 35,750 (US -$46,833).

F-13

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|8. | COMMON STOCK (continued)
|-- | ------------------------

On April 26, 2006, the Company acquired
  all the issued and outstanding stock of EDI, which was accounted for as a recapitalization
  of the Company (Note 1) in exchange for 50,000,000 shares of common stock. The
  issued number of shares of common stock is that of the Company with adjustments
  made for differences in par value between the Company and EDI.

On September 28, 2006, the Company issued
  714,285 units at a price of $0.70 per unit in a private placement transaction.
  Each unit consists of one share of the Company’s common stock and one
  share purchase warrant for total proceeds of $500,000. Each warrant entitles
  the holder to purchase an additional share of the Company’s common stock
  at a price of $0.70 per share for a period of two years from the date of closing.

|9. | STOCK OPTIONS AND WARRANTS
|-- | --------------------------

Stock Options

On May 5, 2006, the Company adopted a
  stock incentive plan (the 2006 Stock Option Plan) to provide incentives
  to employees, directors and consultants. The Stock Option Plan provides for
  the issuance of up to 11,000,000 options with a maximum term of five years.
  The maximum aggregate number of shares that may be optioned and sold under the
  2006 Stock Option Plan will be increased effective the first day of each of
  the Companys fiscal quarters, beginning with the fiscal quarter commencing
  May 1, 2006, by an amount equal to the lesser of 10% of the total increase in
  the number of outstanding shares during the previous fiscal quarter and a lesser
  number of shares as may be determined by the Board of Directors of the Company.

| |                                                                                                            |            |  |   | Weighted             | 
| | ---------------------------------------------------------------------------------------------------------- | ---------- |  | - | -------------------- | 
| |                                                                                                            |            |  |   | Average              | 
| |                                                                                                            | Number     |  |   | Exercise
      Price | 
| |                                                                                                            |            |  |   |                      | 
| | Options outstanding, beginning of the period                                                               | -          |  |   |                      | 
| | Granted                                                                                                    | 11,000,000 |  | $ | 1.00                 | 
| | Exercised                                                                                                  | -          |  |   |                      | 
| | Expired                                                                                                    | -          |  |   |                      | 
| | Options outstanding, September 30, 2006                                                                    | 11,000,000 |  | $ | 1.00                 | 
| | Options exercisable,
      September 30, 2006                                                              | 2,180,000  |  | $ | 1.00                 | 
| | Weighted
      average fair value of options granted during the nine months ended September
      30, 2006 |            |  | $ | 1.18                 | 

On May 5, 2006, the Company granted stock
  options to officers, directors and consultants under the 2006 Stock Option Plan,
  to acquire a total of 11,000,000 shares of common stock exercisable at a price
  of $1.00 per share for a term expiring on the date that is five years after
  the date such options become vested and exercisable.

F-14

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|9. | STOCK OPTIONS AND WARRANTS (continued)
|-- | --------------------------------------

Stock Options (continued)

A summary of stock options outstanding
  at September 30, 2006, is as follows:

| |                |            | Outstanding Options |                | Exercisable Options
| | -------------- | ---------- | ------------------- | -------------- | -------------------
| |                |            | Weighted            |                |                    
| |                |            | Average             | Weighted       |                    
| |                |            | Remaining           | Average        |                    
| | Exercise Price | Number     | Contractual Life    | Exercise Price | Number             
| |                |            |                     |                |                    
| | $ 1.00         | 4,200,0000 | 8.58                | $ 1.00         | 840,000            
| | $ 1.00         | 500,000    | 8.58                | $ 1.00         | 100,000            
| | $ 1.00         | 2,000,000  | 8.58                | $ 1.00         | 400,000            
| | $ 1.00         | 1,190,000  | 8.58                | $ 1.00         | 240,000            
| | $ 1.00         | 500,000    | 8.58                | $ 1.00         | 100,000            
| | $ 1.00         | 500,000    | 5.58                | $ 1.00         | 250,000            
| | $ 1.00         | 250,000    | 7.58                | $ 1.00         | -                  
| | $ 1.00         | 250,000    | 7.58                | $ 1.00         | -                  
| | $ 1.00         | 250,000    | 7.58                | $ 1.00         | -                  
| | $ 1.00         | 200,000    | 7.58                | $ 1.00         | -                  
| | $ 1.00         | 200,000    | 7.58                | $ 1.00         | -                  
| | $ 1.00         | 200,000    | 5.58                | $ 1.00         | 100,000            
| | $ 1.00         | 200,000    | 5.58                | $ 1.00         | 100,000            
| | $ 1.00         | 100,000    | 7.58                | $ 1.00         | -                  
| | $ 1.00         | 100,000    | 5.58                | $ 1.00         | 50,000             
| | $ 1.00         | 80,000     | 7.58                | $ 1.00         | -                  
| | $ 1.00         | 50,000     | 7.58                | $ 1.00         | -                  
| | $ 1.00         | 30,000     | 5.58                | $ 1.00         | -                  
| | $ 1.00         | 200,000    | 9.58                | $ 1.00         | -                  

The Company used the Black-Scholes option
  pricing model to compute estimated fair value, based on the following assumptions:

Risk-free interest rate
      3.30%Dividend yield rate
      0.00%Price volatility
      110.00%Weighted average expected life of options
      7.84 years


The Company recognized stock-based compensation
  of $2,566,405 being the fair value of the options vested and exercisable in
  the period.

F-15

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|9. | STOCK OPTIONS AND WARRANTS (continued)
|-- | --------------------------------------

Warrants

Date
      Issued
      Outstanding
      Exercise Price
      Expiry DateSeptember 28, 2006
      714,285
      714,285
      $ 0.70
      September 28, 2008


|10. | SEGMENT INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | The Companys operations following the acquisition
        of EDI were conducted in one reportable segment, being the distribution
        and maintenance of water exploration machinery and equipment and the provision
        of related services.                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|11. | COMMITMENTS                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | On September 27, 2006, EDI entered into a vehicle lease
        agreement that requires monthly lease payments of Euro 497 (US -$630)
        plus taxes and expires on September 30, 2010.                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | On May 29, 2006, EDI entered into a managing service
        contract with a managing director of EDI effective August 1, 2006 to pay
        monthly management fees of Euro 5,600 (US -$7,072). The contract may be
        terminated at the end of each calendar quarter by giving written notice
        of six months and ends without notice at the end of the month in which
        the managing director turns 65 years of age.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | On January 1, 2006, EDI entered into a vehicle lease
        agreement that requires monthly lease payments of Euro 903 (US -$1,140)
        plus taxes and expires on January 1, 2010.                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | On July 1, 2005, EDI entered into a consulting agreement
        with an individual effective July 1, 2005 to pay monthly consulting fees
        at Euro 100 per hour. The contract terminates on December 31, 2007.                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | On July 1, 2005, EDI entered into a consulting agreement
        with an individual effective July 1, 2005 to pay monthly consulting fees
        at Euro 100 per hour. The contract terminates on December 31, 2007.                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | On July 1, 2005, EDI entered into a lease agreement
        for tenancy of office space that may be terminated with written notice
        of three months. The lease agreement requires monthly lease payments of
        Euro 600 (US -$758) plus taxes.                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    | On March 1, 2005, EDI entered into a lease agreement
        for tenancy of office space that may be terminated with written notice
        of three months. The lease agreement requires monthly lease payments of
        Euro 491 (US -$620) plus taxes.                                                                                                                                                                              

F-16

---

|EXPLORATION DRILLING INTERNATIONAL INC.       
|----------------------------------------------
|(formerly Invision Capital, Inc.)             
|(A Development Stage Company)                 
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|(Expressed in U.S. Dollars)                   
|September 30, 2006                            
|(Unaudited)                                   

|11. | COMMITMENTS (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | On July 1, 2005, EDI entered into a freelance agreement
        with an individual effective July 1, 2005, to pay monthly consulting fees
        of Euro 8,000 (US -$10,102). The contract may be terminated at the end
        of each calendar quarter by giving written notice of six months.                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | On January 1, 2005, EDI entered into a managing service
        contract with a managing director of EDI effective July 1, 2005, to pay
        monthly management fees of Euro 10,000 (US $12,628) and a management bonus
        of 5% of the annual net income of EDI under German law, due one month
        following the approval of the annual financial statements by a meeting
        of the shareholders. The contract may be terminated at the end of each
        calendar quarter by giving written notice of six months and ends without
        notice at the end of the month in which the managing director turns 65
        years of age.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | On January 1, 2005, EDI entered into a managing service
        contract with a managing director of EDI effective July 1, 2005, to pay
        monthly management fees of Euro 10,000 (US $12,628) and a management bonus
        of 5% of the annual net income of EDI under German law, due one month
        following the approval of the annual financial statements by a meeting
        of the shareholders. The contract may be terminated at the end of each
        calendar quarter by giving written notice of six months and ends without
        notice at the end of the month in which the managing director turns 65
        years of age.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|12. | SUBSEQUENT EVENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Effective October 16, 2006, the Company changed its
        name from Invision Capital, Inc. to Exploration Drilling International
        Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | On July 6, 2006, the Company approved a private placement
        with a corporate investor for a total of 1,086,956 units at a price of
        $0.92 per unit, for total proceeds of $1,000,000. Each unit consists of
        one share of the Company’s common stock and one share purchase warrant.
        Each share purchase warrant entitles the holder to purchase one additional
        share of the Company’s common stock at a price of $0.92 per share
        for a period of two years from the date of closing.                                                                                                                           

F-17

---

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION.

Cautionary Statement Regarding Forward-Looking
Statements

Certain statements contained in this Quarterly Report
constitute forward-looking statements. These statements, identified by words
such as plan, anticipate, believe, estimate, should, expect and
similar expressions include our expectations and objectives regarding our future
financial position, operating results and business strategy. These statements
reflect the current views of management with respect to future events and are
subject to risks, uncertainties and other factors that may cause our actual
results, performance or achievements, or industry results, to be materially
different from those described in the forward-looking statements. Such risks and
uncertainties include those set forth under this caption Managements
Discussion and Analysis or Plan of Operation and elsewhere in this Quarterly
Report. We do not intend to update the forward-looking information to reflect
actual results or changes in the factors affecting such forward-looking
information. We advise you to carefully review the reports and documents we file
from time to time with the United States Securities and Exchange Commission (the
SEC), particularly our Annual Reports on Form 10-KSB and our Current Reports
on Form 8-K.

As used in this Quarterly Report, the terms we, us, our,
the Company and EDI mean Exploration Drilling International Inc. unless
otherwise indicated. All dollar amounts in this Quarterly Report are in U.S.
dollars unless otherwise stated.

INTRODUCTION

We were incorporated in the State of Nevada on January 24,
2003. Effective on April 26, 2006, we completed the acquisition of EDI
Exploration Drilling International GmbH (EDI Germany). Prior to our
acquisition of EDI Germany, we had been engaged in the business of acquiring,
exploring and developing mineral properties. We had previously owned an option
to acquire a 100% undivided interest in a mineral property located in the
Thunder Bay Mining Division in the Province of Ontario, Canada, that we called
the Muriel Lake Property. In order to focus our resources on developing EDI
Germanys business, we no longer intend to proceed with our mineral property
acquisition and exploration activities. As such, we allowed our option to the
Muriel Lake Property to lapse in July, 2006.

The following discussion and analysis summarizes our plan of
operation for the next twelve months, our results of operations for the third
quarter and nine month period ended September 30, 2006 and changes in our
financial condition from December 31, 2005. This discussion should be read in
conjunction with the Managements Discussion and Analysis or Plan of Operation
included in our Current Report on Form 8-K filed with the SEC on May 2,
2006.

RECENT CORPORATE DEVELOPMENTS

We experienced the following significant developments since
June 30, 2006, the date of our last filed Quarterly Report:

|1. | Effective October 16, 2006, our name was changed from
      Invision Capital, Inc. to Exploration Drilling International Inc. and
      our trading symbol on the OTC Bulletin Board was changed from IVCA to
      EXDL.                                                                                                                                                     
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                       
|2. | On October 6, 2006, we entered into a memorandum of
      understanding (the Namibian MOU) with Pamue Investment Company (Pty.)
      Ltd. (Pamue Investment) and August 26 Holding Company (Pty.) Ltd.
      (August 26 Holding). August 26 Holding is a company owned by the
      Namibian government. Pamue Investment is a Namibian company that invests
      in expanding

3

---

|   | business within Namibia and the neighboring regions of
      southwestern Africa, with a focus on long-term economic and social growth.
      Pursuant to the Namibian MOU, Pamue Investment and August 26 Holding will
      undertake to procure water drilling projects, and we will employ Namibian
      drilling companies to assist in the execution of any water drilling or
      exploration projects procured. Projects procured under the Namibian MOU
      will utilize our patent pending technologies, the Fluid Finder, the Medium
      Changer and the Water Save, but there can be no assurances that the
      projects will utilize the technologies or that the technologies will work
      as expected. The Namibian MOU also contemplates that, on terms to be
      agreed upon by the parties, Pamue Investment and August 26 Holding may
      obtain a shareholding in EDIs wholly owned Namibian subsidiary, EDI
      Southern Africa (Pty.) Ltd. (EDI Southern Africa). The provisions of the
      Namibian MOU extend for a period ending on October 31, 2006, or such later
      date as may agreed to by the parties, unless earlier terminated by the
      procurement of a water drilling contract or upon Pamue Investment and
      August 26 Holding obtaining an interest in EDI Southern Africa. In
      November, 2006, we secured a drilling project in Namibia as a result of
      the Namibian MOU. The drilling project is for four exploratory water wells
      and is expected to begin before the end of the 2006 calendar year. The
      terms of the Namibian MOU have not been extended, however we are
      continuing to work with Pamue Investment and August 26 Holding.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3. | On September 28, 2006, we completed a private placement
      of 714,285 units at a price of $0.70 per unit for total proceeds of
      $500,000. Each unit consists of one share of our common stock and one
      share purchase warrant, entitling the holder to purchase one additional
      share of our common stock at a price of $0.70 per share for a period of
      one year from the date of closing. This private placement was completed
      pursuant to the provisions of Regulation S promulgated under the
      Securities Act of 1933. See Part II, Item 2 Unregistered Sales of Equity
      Securities and Use of Proceeds.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4. | On August 28, 2006, we amended and restated our Bylaws in
      order to update our bylaws and remove certain outdated and redundant
      provisions. A copy of our Amended and Restated Bylaws and a description of
      the material differences from our previous bylaws is included in our
      Current Report on Form 8-K filed with the SEC on August 28,
2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|5. | In August, 2006, EDI Germany hired Peter Stakne to act as
      a managing director of EDI Germany. Mr. Stakne is responsible for
      structuring and managing EDI Germanys business operations, including the
      implementation of drilling contracts. Mr. Stakne has held a number of
      management positions with the tunneling divisions of civil engineering
      companies. Mr. Stakne is paid a management fee of EUR 5,600 per
    month.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|6. | In July, 2006, we approved an offering of 1,086,956 units
      at a price of $0.92 per unit, for total potential proceeds of $1,000,000.
      Each unit consists of one share of our common stock and one share purchase
      warrant, entitling the holder to purchase one additional share of our
      common stock at a price of $0.92 per share for a period of two years from
      the date of closing. Negotiations with respect to this private placement
      offering are ongoing. There are no assurances that it will complete on the
      terms as described above, if at all.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

PLAN OF OPERATION

During the next twelve months, we will seek to gain market
penetration for our products and processes within the drilling industry. In
order to do so, we will seek to use our business contacts and will obtain the
assistance of business consultants with local and international connections.
Over the next year, we will focus on developing relationships and contacts in
Germany, the Middle East, Namibia and India, in an effort to generate access to
drilling projects and corresponding sales of our products and services:

4

---

|(a) | Germany: The water supply market, and the
      corresponding market for well drilling projects, is fragmented by nature
      and will require us to establish contacts with a number of regional water
      suppliers, and, in certain cases, with private utility companies. Through
      the business contacts of our management, we have already begun to
      establish open dialogues with private and public water supply companies in
      an effort to promote our products. In addition, we will attempt to obtain
      access to geothermal pilot projects in an effort to market the benefits of
      our Fluid Finder and Medium Changer technology to the geothermal energy
      process.                                                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(b) | The Middle East: The Middle East contains some of
      the most arid environments in the world. For example, 97% of Egypt is
      covered by desert. As a result, there is a distinct market for groundwater
      pumping and irrigation projects. Within these markets, we will attempt to
      offer our services as a general contractor and sub-contractor for well
      drilling projects. We have formed relationships with drilling companies in
      Saudi Arabia and Bahrain and will seek to parlay these contacts into well
      drilling contracts within those countries. In addition, we are also
      seeking to gain access to well drilling projects in the United Arab
      Emirates and Egypt.                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(c) | Namibia: The West African Country of Namibia has
      one of the most arid climates in the world. 83% of the rainfall
      experienced in Namibia evaporates soon after it falls. In Namibia, there
      are currently 150,000 water wells in operation; however, 75% of these do
      not pump drinking quality water. Supplying drinking water for household
      consumption has become an important goal for the Government of Namibia. We
      entered into a memorandum of understanding (the Namibia MOU) with August
      26 Holding Company (Pty.) Ltd. and Pamue Investment Company (Pty.) Ltd.
      for the procurement of water drilling projects in Namibia. We recently
      secured a drilling project in Namibia that will involve drilling four
      exploratory water wells. Work on this drilling project is expected to
      begin before the end of the 2006 calendar year. The Namibian MOU expired
      on October 31, 2006 in accordance with its terms, however we are
      continuing to work with both Pamue Investment and August 26
  Holding.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(d) | India: India is one of the most populous countries
      in the world and is an emerging industrial giant. With the increase in
      development, Indias demands for water supplies continue to grow. We have
      reached a preliminary agreement with a drilling company based in
      Hyderabad, India, to form a joint venture in order to exploit their
      respective expertise and business contacts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

In addition, we will also explore opportunities for our
products and services in other international markets, focusing primarily on
countries where there is an established need for water well drilling
technologies and services.

We anticipate that we will require approximately EUR 3,000,000
($3,870,000) to complete our plan of operation over the next twelve months. The
majority of this amount will be spent on marketing presentations, product
demonstrations, and legal and other consulting fees associated with establishing
our presence in international markets. In addition, we anticipate that we will
require an additional $50,000 for general administrative purposes and to pay for
the legal and accounting fees we expect to incur in meeting ongoing reporting
obligations under United States securities laws.

Financing Requirements

Currently, we do not have sufficient financial resources to
complete our plan of operation for the next twelve months. We have not earned
any revenues to date, and there are no assurances that we will be able to
generate revenues in the future. As such, our ability to complete our plan of
operation is expected to be dependent upon our ability to obtain substantial
financing in the near term.

Any financing that we obtain is expected to be in the form of
sales of our equity securities as traditional debt financing is not expected to
be available to us in sufficient amounts at this stage of our development. If we
are successful in completing any equity financings, of which there is no
assurance, our existing shareholders will experience a dilution of their
interest in our company. If we are not

5

---

successful in raising sufficient financing, we will not be able
to complete our current plan of operation. We do not have any specific
alternatives to our current plan of operation and have not planned for any such
contingency. If we are not successful in raising sufficient financing, our
business may fail and our shareholders may lose all or part of their
investment.

RESULTS OF OPERATIONS

Third Quarter and Nine Months Summary

Third Quarter Ended September 30
    
    
      Nine Months Ended September 30Percentage
    
    
    
    
    
    
    
    
    PercentageIncrease /
    
    
    
    
    
    
    
    
    Increase /2006
    
    
    2005
    
    
    (Decrease)
    
    
    2006
    
    
    2005
    
    
    (Decrease)Revenue
    $
    --
    
    $
    --
    
    
    n/a
    
    $
    --
    
    $
    --
    
    
    n/aExpenses
    
    (556,376
    )
    
    (351,670
    )
    
    58.2%
    
    
    (4,285,432
    )
    
    (444,509
    )
    
    864.1%Net Loss Before
    $
    (556,376
    )
    $
    (351,670
    )
    
    58.2%
    
    $
    (4,285,432
    )
    $
    (444,509
    )
    
    864.1%Other Items


Revenues

We are in the development stage of our business and have not
  earned any revenues to date. In October, 2006, we secured a contract for a drilling
  project in Namibia for the drilling of four exploratory water wells. However,
  there are no assurances that we will be able to complete the project or that
  we will be able to generate any significant revenues.

Expenses

Our operating expenses for the quarterly periods ended
September 30, 2006 and 2005 consisted of the following:

Third Quarter Ended September 30
      
      
      Nine Months Ended September 30Percentage
    
    
    
    
    
    
    
    
    PercentageIncrease /
    
    
    
    
    
    
    
    
    Increase /2006
    
    
    2005
    
    
    (Decrease)
    
    
    2006
    
    
    2005
    
    
    (Decrease)Professional and
    $
    181,538
    
    $
    114,899
    
    
    58.0%
    
    $
    714,036
    
    $
    129,708
    
    
    450.5%management feesOther operating expenses
    
    371,199
    
    
    237,089
    
    
    56.6%
    
    
    1,000,867
    
    
    314,594
    
    
    218.1%Stock compensation
    
    --
    
    
    --
    
    
    n/a
    
    
    2,566,405
    
    
    --
    
    
    100.0%expenseForeign currency loss
    
    3,639
    
    
    (318
    )
    
    1,244.3%
    
    
    4,124
    
    
    207
    
    
    1,892.3%Total Expenses
    $
    556,376
    
    $
    351,670
    
    
    58.2%
    
    $
    4,285,432
    
    $
    444,509
    
    
    864.1%


The increase in our total expenses during the three and nine
month periods ended September 30, 2006 from the same periods ended September 30,
2005 is a general result of the increase in our business development activities
during the periods ended September 30, 2006. The increase in operating expenses
is largely attributable to increases in consulting fees and salaries paid to
consultants and employees and costs related to the opening of an office in
Austria.

6

---

During the nine months ended September 30, 2006, we spent
approximately $265,080 on patent development costs. These amounts have been
capitalized by us and are not included in operating expenses for the period.

The amounts recognized on account of stock based compensation
are based on the fair value of the options granted pursuant to our 2006 Stock
Option Plan, calculated using the Black-Scholes option pricing model. See Note 9
to our financial statements included with this Quarterly Report.

Included in professional fees for the nine months ended
September 30, 2006 are amounts incurred by us in connection with our acquisition
of EDI Germany and with meeting our reporting obligations under applicable
securities laws.

Subject to our ability to obtain additional financing, of which
there is no assurance, we anticipate that our operating expenses will continue
to increase as we pursue our plan of operation.

LIQUIDITY AND CAPITAL RESOURCES

Working Capital

|                          |   |                             |   |   |                            |   |  | Percentage            | 
|------------------------- | - | --------------------------- | - | - | -------------------------- | - |  | --------------------- | 
|                          |   | At
      September 30, 2006 |   |   | At
      December 31, 2005 |   |  | Increase / (Decrease) | 
|Current Assets            | $ | 1,025,842                   |   | $ | 613,729                    |   |  | 67.1%                 | 
|Current Liabilities       |   | (1,388,492                  | ) |   | (133,631                   | ) |  | 939.0%                | 
|Working Capital (Deficit) | $ | (362,650                    | ) | $ | 480,098                    |   |  | (175.5)%              | 

Cash Flows

|                                                    |   | Nine Months Ended September 30, |  
|--------------------------------------------------- | - | ------------------------------- | -
|                                                    |   | 2006                            |  
|Cash Flows used in Operating Activities             | $ | (1,480,354                      | )
|Cash Flows used in Investing Activities             |   | (352,938                        | )
|Cash Flows from Financing Activities                |   | 2,194,535                       |  
|Effects of Foreign Currency Translations            |   | 14,226                          |  
|Net Increase (Decrease) in Cash During
      Period | $ | 375,469                         |  

Cash received from financing activities during the nine months
ended September 30, 2006 consisted of $1,311,758 in loans received during the
period and $500,000 received from a private placement sale of our common stock.
The increase to our current assets during the period is largely a result of
these financing efforts. Also recorded as cash received from financing
activities during the period are $301,190 received by EDI Germany from one of
its former stockholders prior to our acquisition of EDI Germany.

The increase to our current liabilities and the resulting
working capital deficit as at September 30, 2006 are largely a result of an
increase in amounts payable arising from our increased business development
activities and as a result of short term loans received during the period.

Financing Requirements

We anticipate that we will continue to incur losses for the
foreseeable future, as we expect to incur substantial product development,
marketing and/or operating expenses in implementing our plan of

7

---

operation. Our future financial results are uncertain due to a
number of factors, many of which are outside of our control. These factors
include, but are not limited to:

| | (a) | our ability to raise additional capital necessary to
      implement our business strategy and plan of operation;            
| | --- | -----------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                              
| | (b) | our ability to compete with other existing technologies;
      and                                                           
| |     |                                                                                                                              
| | (c) | the success of any marketing and promotional campaign
      which we conduct for our products once development is
  complete.

The financial statements accompanying this Quarterly Report
contemplate our continuation as a going concern. However, we have sustained
substantial losses, have a limited operating history and are still in the
development stage of our business.

As at September 30, 2006, we had a working capital deficit of
$362,650 and we anticipate that we will require approximately $3,870,000 to
complete our plan of operation for the next twelve months. We currently do not
have sufficient working capital to meet our current obligations or to complete
our plan of operation. As a result, we require additional financing.

On September 28, 2006, we completed an offering of 714,285 units
  at a price of $0.70 per unit for total proceeds of $500,000. Each unit consisted
  of one share of our common stock and one share purchase warrant, entitling the
  holder to purchase one additional share of our common stock at a price of $0.70
  per share for a period of one year from the date of closing.

In July, 2006, we approved an offering of 1,086,956 units at a
price of $0.92 per unit, for total potential proceeds of $1,000,000. Each unit
consists of one share of our common stock and one share purchase warrant,
entitling the holder to purchase one additional share of our common stock at a
price of $0.92 per share for a period of two years from the date of closing.
This private placement offering has not yet been completed, and there are no
assurances that it will complete on the terms as described above, if at all.

Other than the approved offering described above, we do not
have any financing arrangements in place and there are no assurances that we
will be able to obtain sufficient financing on terms that are acceptable to us,
or at all. Although we received a number of short-term loans during the period,
it is expected that future financings will be in the form of private placements
of our equity securities. However, there is no assurance that we will be able to
raise the necessary capital to continue our operations. If we are successful in
obtaining financing through the sale of shares of our common stock, of which
there are no assurances, the interests of our existing stockholders will be
diluted.

OFF-BALANCE SHEET ARRANGEMENTS

We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a current or future effect on our financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that is
material to our stockholders.

CRITICAL ACCOUNTING POLICIES

The financial statements presented with this Quarterly Report
on Form 10-QSB have been prepared in accordance with generally accepted
accounting principles in the United States of America for interim financial
information. These financial statements do not include all information and
footnote disclosures required for an annual set of financial statements prepared
under United States generally

8

---

accepted accounting principles. In the opinion of our
management, all adjustments (consisting solely of normal recurring accruals)
considered necessary for a fair presentation of the financial position, results
of operations and cash flows as at September 30, 2006 and for all periods
presented in the attached financial statements, have been included. Interim
results for the nine-month period ended September 30, 2006 are not necessarily
indicative of the results that may be expected for the fiscal year as a
whole.

We have identified those accounting policies, described below,
that are most important to the portrayal of our current financial condition and
results of operations. Our significant accounting policies are disclosed in the
notes to the consolidated financial statements included with this Quarterly
Report on Form 10-QSB.

Reverse Acquisition Accounting

Under generally accepted accounting principles, the acquisition
of EDI Germany has been accounted for as a reverse acquisition and EDI Germany
has been treated as the acquiring entity for accounting and financial reporting
purposes. As such, our consolidated financial statements will be presented as a
continuation of the operations of EDI Germany and not EDI (formerly, Invision
Capital, Inc.). The operations of EDI will be included in the consolidated
statement of operations from the effective date of the acquisition, April 26,
2006.

RISKS AND UNCERTAINTIES

Need For Financing

We do not currently have the financial resources to complete
our plan of operation for the next twelve months. We anticipate that we will
require financing in the amount of $3,870,000 in order to fund our plan of
operation over the next twelve months. We presently do not have any financing
arrangements in place and there is no assurance that we will be able to obtain
sufficient financing on terms acceptable to us or at all. If further financing
is not available or obtainable, our ability to meet our financial obligations
and pursue our plan of operation will be substantially limited and investors may
lose a substantial portion or all of their investment.

Limited Operating History, Risks Of A New Business
Venture

EDI Germany was formed on December 7, 2004 and, as such, has a
very short operating history upon which future performance may be assessed. EDI
Germany has not earned any revenues to date.

Potential investors should be aware of the difficulties normally
  encountered by a new enterprise and the high rate of failure of such enterprises.
  The potential for future success must be considered in light of the problems,
  expenses, difficulties, complications and delays encountered in connection with
  the development of a business in the area in which we intend to operate and
  in connection with the formation and commencement of operations of a new business
  in general. These include, but are not limited to, unanticipated problems relating
  to research and development programs, marketing, approvals by government agencies,
  competition and additional costs and expenses that may exceed current estimates.
  There is no history upon which to base any assumption as to the likelihood that
  our business will prove successful, and there can be no assurance that we will
  generate any operating revenues or ever achieve profitable operations.

Our Operations May Be Subject To Extensive Government
Regulations

Well drilling is an inherently dangerous activity. As such, we
expect that any well projects that we participate in will be subject to a number
of government safety and environmental regulations. Obtaining any necessary
permits and/or governmental approvals may be a lengthy and costly process.

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As we currently do not have any drilling contracts in place and
are seeking to market our products and services in a number of countries, the
full extent of these regulations is not yet fully known. There are no assurances
that we will be able to obtain the necessary government approvals or that the
costs associated with obtaining those approvals will be affordable to us.

Competition Is Intense And We May Be Unable To Achieve
Market Acceptance

EDI Germany competes directly with traditional well drilling
contractors. The market for well drilling contractors and equipment providers is
mature and well established. As such, the business environment in which we
intend to operate is highly competitive. Currently, there exist a number of
established methods, products and technologies used in the well drilling process
and we expect to experience competition from a number of established companies
involved this industry. Many of our potential competitors will have greater
technical, financial, marketing, sales and other resources than we will.

Our ability to compete within this industry is dependent upon
our ability to differentiate our processes, products and technologies from those
already existing in the marketplace and our ability to create public awareness
of the advantages those processes, products and technologies present. Although
our management has experience in the well drilling industry, as an entity, we
are new entrants to that industry and our technologies have not yet gained
marketplace acceptance. We are unable to provide assurances that our target
customers and markets will accept our technologies or will purchase our products
and services in sufficient quantities to achieve profitability. If a significant
market fails to develop or develops more slowly than we anticipate, we may be
unable to meet our operational expenses. Acceptance of our products will depend
upon a number of factors, including the cost competitiveness of our products,
customer reluctance to try new products or services, regulatory requirements or
the emergence of more competitive or effective products.

Rapid Technological Changes In Our Industry Could Make Our
Products Obsolete

If new technologies, products and industry standards develop at
a rapid pace, they could make our products obsolete. Our future success will
depend upon our ability to develop and introduce product enhancements to address
the needs of customers. Material delays in introducing product enhancements may
cause customers to forego purchases of our product and purchase those of
competitors.

Asserting And Defending Intellectual Property Rights May
Impact Results Of Operations

The success of our business may depend on our ability to
protect our proprietary process and technology from competitors. A number of
international patent applications have been filed with respect to EDI Germanys
technologies. However, there is no assurance that a final patent will be granted
for any of the patent pending technologies underlying our proposed products. If
we are not able to obtain a patent for any of the technologies, we will only be
able to protect our products and technological processes by maintaining the
secrecy of those products and processes.

Even if we are able to obtain patents for our technologies, we
may be required to defend our intellectual property rights through litigation.
The financial cost of such litigation could have a material impact on our
financial condition even if we are successful in developing and marketing
products and in defending any of our intellectual property rights, of which
there is no assurance. Furthermore, an adverse outcome in any litigation or
interference proceeding could subject us to significant liabilities to third
parties and require us to cease using the technology that is at issue or to
license the technology from third parties. In addition, a finding that any of
our intellectual property rights are invalid could allow competitors to more
easily and cost-effectively compete. Thus, an unfavorable outcome in any patent
litigation or interference proceeding could have a material adverse effect on
our business, financial condition and results of operations.

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Dependence On Key Personnel

Our success will largely depend on the performance of our
directors and officers and the managers of EDI Germany. Our success will also
depend on our ability to attract and retain highly skilled technical, research,
management, regulatory compliance, sales and marketing personnel. Competition
for such personnel is intense. The loss of the services of such personnel or the
inability to attract and retain other key personnel could impair the development
of our business, operating results and financial condition.

ITEM 3. CONTROLS AND PROCEDURES.

Under the supervision and with the participation of our
management, including the Chief Executive Officer and Chief Financial Officer,
we have evaluated the effectiveness of our disclosure controls and procedures as
required by Exchange Act Rule 13a-15(b) as of the end of the period covered by
this report. Based on that evaluation, the Chief Executive Officer and Chief
Financial Officer have concluded that these disclosure controls and procedures
are effective.

There were no changes in our internal control over financial
reporting during the nine months ended September 30, 2006 that have materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS.

On September 28, 2006, we completed a private placement of
714,285 units at a price of $0.70 per unit for total proceeds of $500,000. Each
unit consists of one share of our common stock and one share purchase warrant,
entitling the holder to purchase one additional share of our common stock at a
price of $0.70 per share for a period of one year from the date of closing. This
private placement was completed pursuant to the provisions of Regulation S
promulgated under the Securities Act of 1933. We did not engage in a
distribution of this offering in the United States. The investor represented
that it was not a US person as defined in Regulation S, and has provided
representations indicating that it was acquiring our securities for investment
purposes only and not with a view towards distribution. No underwriting
discounts or commissions were involved. The funds received are being used by us
as general working capital.

In July, 2006, we approved an offering of 1,086,956 units at a
price of $0.92 per unit, for total potential proceeds of $1,000,000. Each unit
consists of one share of our common stock and one share purchase warrant,
entitling the holder to purchase one additional share of our common stock at a
price of $0.92 per share for a period of two years from the date of closing.
This private placement offering has not yet been completed, and there are no
assurances that it will complete on the terms as described above, if at all.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS.

On September 5, 2006, our majority stockholders, EDI
Exploration Drilling International Holding GmbH (EDI Holding), approved by
written consent an amendment to our Articles of Incorporation to change our name
from Invision Capital, Inc. to Exploration Drilling International Inc. On
September 5, 2006, EDI Holding was the stockholder of record of 70,000,000
shares of our common stock, equal to 68.6% of the number of shares issued and
outstanding on that date.

ITEM 5. OTHER INFORMATION.

None.

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ITEM 6. EXHIBITS.

|Exhibit
      Number |  | Description of Exhibit                                                                                                                                                                                                                          
|-------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1                  |  | Articles of Incorporation.(1)                                                                                                                                                                                                                   
|3.2                  |  | Certificate of Change to Authorized Capital.(3)                                                                                                                                                                                                 
|3.3                  |  | Certificate of Amendment to Articles
        of Incorporation  name change to Exploration Drilling International
        Inc.                                                                                                                  
|3.4                  |  | Amended and Restated Bylaws.(8)                                                                                                                                                                                                                 
|4.1                  |  | Specimen Common Stock Certificate.(1)                                                                                                                                                                                                           
|10.1                 |  | Option Purchase and Royalty Agreement.(1)                                                                                                                                                                                                       
|10.2                 |  | Amendment to Option Purchase and Royalty
      Agreement.(2)                                                                                                                                                                                    
|10.3                 |  | Share Purchase Agreement between EDI Exploration Drilling
      International Holding GmbH, Invision Capital, Inc., EDI Exploration
      Drilling International GmbH and Frank Rigney, dated for reference the 5th
      day of April, 2006.(4)
|10.4                 |  | Agreement and Deed of Transfer between EDI Exploration
      Drilling International Holding GmbH and Invision Capital, Inc. dated for
      reference as of the 26thday of April, 2006.(5)                                                      
|10.5                 |  | 2006 Stock Option Plan.(6)                                                                                                                                                                                                                      
|10.6                 |  | Joint Operating Agreement Between A. Abuynayyan Trading
      Corporation and EDI Exploration Drilling International GmbH.(7)                                                                                                                   
|31.1                 |  | Certification of Principal Executive
        Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002.                                                                                                                                
|31.2                 |  | Certification of Principal Financial
        Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002.                                                                                                                                
|32.1                 |  | Certification of Principal Executive
        Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002.                                                                          
|32.2                 |  | Certification of Principal Financial
        Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002.                                                                          

Notes:

|(1) | Filed as an exhibit to our Registration Statement on Form
      10-SB originally filed with the SEC on November 5, 2003.
|--- | ------------------------------------------------------------------------------------------------------------------------
|(2) | Filed as an exhibit to our Quarterly Report on Form
      10-QSB filed with the SEC on March 17, 2006.                  
|(3) | Filed as an exhibit to our Current Report on Form 8-K
      filed with the SEC on March 27, 2006.                       
|(4) | Filed as an exhibit to our Current Report on Form 8-K
      filed with the SEC on April 27, 2006.                       
|(5) | Filed as an exhibit to our Current Report on Form 8-K
      filed with the SEC on May 2, 2006.                          
|(6) | Filed as an exhibit to our Current Report on Form 8-K
      filed with the SEC on May 11, 2006.                         
|(7) | Filed as an exhibit to our Current Report on Form 8-K
      filed with the SEC on June 28, 2006.                        
|(8) | Filed as an exhibit to our Current Report on Form 8-K
      filed with the SEC on August 28, 2006.                      

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SIGNATURES

In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|      |                   |  | EXPLORATION DRILLING INTERNATIONAL INC.
|----- | ----------------- |  | ---------------------------------------
|      |                   |  |                                        
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|Date: | November 14, 2006 |  | By:                                    
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|Date: | November 14, 2006 |  | By:                                    
|      |                   |  |                                        
|      |                   |  |                                        
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|      |                   |  |                                        
|      |                   |  |                                        
|      |                   |  |                                        
|      |                   |  |                                        
|Date: | November 14, 2006 |  | By:                                    
|      |                   |  |                                        
|      |                   |  |                                        

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