----

**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION **

**Washington,      D.C. 20549 **

**FORM        10-QSB/A **

**(Mark      One) **

**x**
**QUARTERLY      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**For      the quarterly period ended March 31, 2005 **

** ̈**
**TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT**

**For      the transition period from **
**            **
**      to **
**            **
** **

**333-64122      **

**(Commission      file number) **

**V**
**ERDISYS**
**,      I**
**NC**
**.      **

**(Exact      name of small business issuer as specified in its charter)**

|                                                                                                |                                                                   |
|-----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|
| **California**                                                                                      | **22-3755993**                                                         |
| **(State                or other jurisdiction of****incorporation                or organization)** | **(IRS                Employer****Identification                No.)** |

**14550      Torrey Chase Blvd, Suite 330 **

**Houston,      Texas 77014 **

**(Address      of principal executive offices) **

**(281)      453-2888 **

**(Issuer’s      telephone number) **

**(Former      name, former address and former fiscal year, if changed since last report)      **

**Transitional      Small Business Disclosure Format (check      one):    Yes  **
**x**
**    No  **
** ̈**
** **

----

**Explanatory        Note**

**Verdisys,      Inc. **

**Index      **

|                    |                                                                           |                     |
|-------------------------|--------------------------------------------------------------------------------|--------------------------|
|                    |                                                                           | **Page****Number**  |
| PART I.            | FINANCIAL                INFORMATION                                           |                     |
|                    |                                                                           |                     |
| Item                1.  | Financial                Statements                                            | 3                        |
|                    |                                                                           |                     |
| Item                2.  | Management’s                Discussion and Analysis or Plan of Operation | 11                       |
|                    |                                                                           |                     |
| Item                3.  | Controls                and Procedures                                         | 14                       |
|                    |                                                                           |                     |
| Part                II. | OTHER                INFORMATION                                               |                     |
|                    |                                                                           |                     |
| Item                1.  | Legal                Proceedings                                               | 14                       |
|                    |                                                                           |                     |
| Item                2.  | Unregistered                Sales of Equity Securities and Use of Proceeds     | 15                       |
|                    |                                                                           |                     |
| Item 6.            | Exhibits                and Reports on Form 8-K                                | 15                       |
|                    |                                                                           |
| SIGNATURES              | 17                                                                             |

----

**V**
**ERDISYS**
**,      I**
**NC**
**.      **

**PART      I. FINANCIAL INFORMATION **

**ITEM      1. Financial Statements **

|                                                                                                       |                     |
|------------------------------------------------------------------------------------------------------------|--------------------------|
|                                                                                                       | **Page****Number**  |
| Balance                Sheet as of March 31, 2005                                                          | 4                        |
|                                                                                                       |                     |
| Statements                of Operations, for the three months ended March 31, 2005 and                2004 | 5                        |
|                                                                                                       |                     |
| Statements                of Cash Flow, for the three months ended March 31, 2005 and                2004  | 6                        |
|                                                                                                       |                     |
| Notes                to Financial Statements                                                               | 7                        |

----

**VERDISYS,      INC. **

**BALANCE      SHEET **

**(Unaudited)      **

**March      31, 2005 **

|                                                                                                                                                     |   |             |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|-------------|
| **Assets**                                                                                                                                               |   |             |        |
|                                                                                                                                                     |   |  (Restated) |        |
| **Current                  Assets:**                                                                                                                     |   |             |             |   |
| Cash                                                                                                                                                     |   | $                | 169,856     |   |
| Accounts                  receivable, net of allowance for doubtful accounts of                  $17,001                                                 |   |             | 136,102     |   |
| Lease                  receivable                                                                                                                        |   |             | 50,000      |   |
| Receivable                  from related party                                                                                                           |   |             | 375,000     |   |
| License                  receivable                                                                                                                      |   |             | 900,000     |   |
| Other                  current assets                                                                                                                    |   |             | 75,381      |   |
|                                                                                                                                                     |   |             |             |   |
| Total                  Current Assets                                                                                                                    |   |             | 1,706,339   |   |
|                                                                                                                                                     |   |             |        |   |
| **Equipment,**                  net of accumulated depreciation of $103,174                                                                              |   |             | 531,570     |   |
|                                                                                                                                                     |   |             |             |   |
| Total                  Assets                                                                                                                            |   | $                | 2,237,909   |   |
|                                                                                                                                                     |   |             |             |   |
| **Liabilities                  and Stockholders’ Equity**                                                                                          |   |             |             |   |
|                                                                                                                                                     |   |             |        |   |
| **Current                  Liabilities:**                                                                                                                |   |             |             |   |
| Accounts                  payable                                                                                                                        |   | $                | 661,096     |   |
| Accrued                  expenses                                                                                                                        |   |             | 1,210,075   |   |
| Deferred                  revenue                                                                                                                        |   |             | 270,710     |   |
| Customer                  deposits                                                                                                                       |   |             | 101,850     |   |
| Notes                  payable - related parties, net of unamortized discount of                  $2,521                                                 |   |             | 107,479     |   |
| Notes                  payable - other, net of unamortized discount of $53,643                                                                           |   |             | 421,357     |   |
|                                                                                                                                                     |   |             |             |   |
| Total                  Current Liabilities                                                                                                               |   |             | 2,772,567   |   |
|                                                                                                                                                     |   |             |        |   |
| **Long                  Term Liabilities:**                                                                                                              |   |             |             |   |
| Notes                  payable - related parties, net of unamortized discount of                  $41,792                                                |   |             | 158,208     |   |
| Deferred                  revenue, less current portion                                                                                                  |   |             | 48,543      |   |
|                                                                                                                                                     |   |             |             |   |
| Total                  Liabilities                                                                                                                       |   |             | 2,979,318   |   |
|                                                                                                                                                     |   |             |             |   |
| **Commitments                  & Contingencies**                                                                                                     |   |             |             |   |
|                                                                                                                                                     |   |             |        |   |
| **Stockholders’                  Equity:**                                                                                                         |   |             |             |   |
| Common                  Stock, $.001 par value, 50,000,000 shares authorized; 36,051,830                  shares                  issued and outstanding |   |             | 36,052      |   |
| Additional                  paid-in capital                                                                                                              |   |             | 27,419,393  |   |
| Accumulated                  deficit                                                                                                                     |   |             | (28,196,854 | ) |
|                                                                                                                                                     |   |             |             |   |
| Total                  Stockholders’ Equity                                                                                                        |   |             | (741,409    | ) |
|                                                                                                                                                     |   |             |             |   |
| Total                  Liabilities and Stockholders’ Equity                                                                                        |   | $                | 2,237,909   |   |
|                                                                                                                                                     |   |             |             |   |

----

**VERDISYS,      INC.**

**STATEMENTS      OF OPERATIONS **

**(Unaudited)      **

|                                                  |   |                                                                                |           |           |   |
|-------------------------------------------------------|--------|-------------------------------------------------------------------------------------|----------------|----------------|--------|
|                                                  |   | **For                  The Three Months Ended****March                  31,**  |           |
|                                                  |   | **2005**                                                                       |           | **2004**  |   |
| **Revenue: **                                    |   |                                                                                | **(Restated)** |           |   |  |   |
| Satellite                  Services                   |   | $                                                                                   | 272,802        |           | $      | 91,750 |   |
| Drilling                  Services                    |   |                                                                                | 14,981         |           |   | 114,158 |   |
|                                                  |   |                                                                                |                |           |   |  |   |
| Total                  Revenue                        |   |                                                                                | 287,783        |           |   | 205,908 |   |
| **Cost                  of Services Provided:**       |   |                                                                                |                |           |   |  |   |
| Satellite                  Services                   |   |                                                                                | 173,803        |           |   | 164,078 |   |
| Drilling                  Services                    |   |                                                                                | 119,484        |           |   | 255,262 |   |
|                                                  |   |                                                                                |                |           |   |  |   |
| Total                  Cost of Services Provided      |   |                                                                                | 293,287        |           |   | 419,340 |   |
|                                                  |   |                                                                                |                |           |   |  |   |
| **Gross                  Deficit**                    |   |                                                                                | (5,504         | )              |   | (213,432 | ) |
|                                                  |   |                                                                                |           |           |   |   |   |
| **Operating                  Expenses:**              |   |                                                                                |                |           |   |  |   |
| Selling,                  general and administrative  |   |                                                                                | 1,034,627      |           |   | 2,031,079 |   |
| Depreciation                  and amortization        |   |                                                                                | 29,810         |           |   | 129,823 |   |
| Bad                  debts                            |   |                                                                                | 10,000         |           |   | — |   |
|                                                  |   |                                                                                |                |           |   |  |   |
| **Operating                  Loss**                   |   |                                                                                | (1,079,941     | )              |   | (2,374,334 | ) |
|                                                  |   |                                                                                |           |           |   |   |   |
| **Other                  (Income) Expense:**          |   |                                                                                |                |           |   |  |   |
| Interest                  expense                     |   |                                                                                | 51,261         |           |   | 33,569 |   |
| Other                  income                         |   |                                                                                | (971           | )              |   | (88,631 | ) |
| Interest                  income                      |   |                                                                                | (4             | )              |   | (9 | ) |
|                                                  |   |                                                                                |                |           |   |  |   |
| Total                  other (income) expense         |   |                                                                                | 50,286         |           |   | (55,071 | ) |
|                                                  |   |                                                                                |                |           |   |  |   |
| **Net                  Loss**                         |   | $                                                                                   | (1,130,227     | )              | $      | (2,319,263 | ) |
|                                                  |   |                                                                                |                |           |   |  |   |
| Basic                  and diluted net loss per share |   | $                                                                                   | (0.03          | )              | $      | (0.08 | ) |
| Weighted                  average shares outstanding  |   |                                                                                | 34,404,860     |           |   | 30,259,880 |   |

----

**VERDISYS,      INC. **

**STATEMENTS      OF CASH FLOWS **

**(Unaudited)      **

|                                                                                                          |   |                                                                          |           |           |   |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|----------------|----------------|--------|
|                                                                                                          |   | **For                  the Three Months Ended****March                  31,** |           |
|                                                                                                          |   | **2005**                                                                 |           | **2004**  |   |
| **Cash                  Flows From Operating Activities:**                                                    |   |                                                                          | **(Restated)** |           |   |  |   |
| Net                  loss                                                                                     |   | $                                                                             | (1,130,227     | )              | $      | (2,319,263 | ) |
| Adjustments                  to reconcile net loss to net cash used in operating                  activities: |   |                                                                          |                |           |   |  |   |
| Stock                  issued for services or litigation                                                      |   |                                                                          | 962,395        |           |   | 735,192 |   |
| Option                  and warrant expense                                                                   |   |                                                                          | 25,000         |           |   | 80,099 |   |
| Amortization                  of note discount                                                                |   |                                                                          | 34,488         |           |   | — |   |
| Depreciation                  and amortization                                                                |   |                                                                          | 29,810         |           |   | 129,823 |   |
| Loss                  on sale of property                                                                     |   |                                                                          | (971           | )              |   | — |   |
| Bad                  debts                                                                                    |   |                                                                          | 10,000         |           |   | — |   |
| Change                  in working capital items                                                              |   |                                                                          | (19,306        | )              |   | 342,690 |   |
|                                                                                                          |   |                                                                          |                |           |   |  |   |
| Net                  Cash Used In Operating Activities                                                        |   |                                                                          | (88,811        | )              |   | (1,031,459 | ) |
|                                                                                                          |   |                                                                          |                |           |   |  |   |
| **Cash                  Flows From Investing Activities:**                                                    |   |                                                                          |                |           |   |  |   |
| Construction                  of equipment                                                                    |   |                                                                          | (250,000       | )              |   | — |   |
|                                                                                                          |   |                                                                          |                |           |   |  |   |
| Net                  Cash Provided By Investing Activities                                                    |   |                                                                          | (250,000       | )              |   | — |   |
|                                                                                                          |   |                                                                          |                |           |   |  |   |
| **Cash                  Flows From Financing Activities:**                                                    |   |                                                                          |                |           |   |  |   |
| Proceeds                  from sale of stock                                                                  |   |                                                                          | 241,500        |           |   | — |   |
| Proceeds                  from exercise of options and warrants                                               |   |                                                                          | 250            |           |   | 40,993 |   |
| Proceeds                  from notes payable to stockholders                                                  |   |                                                                          | —        |           |   | 50,000 |   |
| Payments                  on note payable related to license                                                  |   |                                                                          | —        |           |   | (100,000 | ) |
|                                                                                                          |   |                                                                          |                |           |   |  |   |
| Net                  Cash Provided By (Used In) Financing Activities                                          |   |                                                                          | 241,750        |           |   | (9,007 | ) |
|                                                                                                          |   |                                                                          |                |           |   |  |   |
| Net                  change in cash                                                                           |   |                                                                          | (97,061        | )              |   | (1,040,466 | ) |
| Cash                  at beginning of period                                                                  |   |                                                                          | 266,917        |           |   | 1,373,627 |   |
|                                                                                                          |   |                                                                          |                |           |   |  |   |
| Cash                  at end of period                                                                        |   | $                                                                             | 169,856        |           | $      | 333,161 |   |
|                                                                                                          |   |                                                                          |                |           |   |  |   |
| **Non-Cash                  Transactions:**                                                                   |   |                                                                          |                |           |   |  |   |
| Conversion                  of liabilities to common stock                                                    |   | $                                                                             | 192,737        |           | $      | — |   |
| Exchange                  of equipment for customer deposit                                                   |   | $                                                                             | 175,000        |           | $      | — |   |
| Exchange                  of equipment for accounts payable                                                   |   | $                                                                             | 3,883          |           | $      | — |   |
| Conversion                  of notes payable and accrued interest to common stock                             |   | $                                                                             | —        |           | $      | 1,920,000 |   |

----

**VERDISYS,      INC. **

**NOTES      TO CONDENSED FINANCIAL STATEMENTS **

**NOTE      1 - BASIS OF PRESENTATION **

**NOTE      2 - GOING CONCERN **

**NOTE      3 - STOCK OPTIONS AND WARRANTS **

*Accounting      for Stock-Based Compensation*
*Accounting      for Stock Issued to Employees*
*Accounting      for Equity Investments That Are Issued to Non-Employees for Acquiring, or in      Conjunction with Selling Goods or Services*

----

**VERDISYS,      INC. **

**NOTES      TO CONDENSED FINANCIAL STATEMENTS **

|                                                                                                      |   |           |       |           |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------|------------|----------------|--------|
|                                                                                                      |   | **2005**  |       | **2004**  |   |
| Net                  loss as reported                                                                     |   | $              | (1,130,227 | )              | $      | (2,319,263 | ) |
| Less:                  stock based compensation determined under fair value based                  method |   |           | (81,569    | )              |   | (532,535 | ) |
|                                                                                                      |   |           |            |           |   |  |   |
| Pro                  forma net loss                                                                       |   | $              | (1,211,796 | )              | $      | (2,851,798 | ) |
|                                                                                                      |   |           |            |           |   |  |   |
| Basic                  and diluted net loss per common share:                                             |   |           |            |           |   |  |   |
|                                                                                                      |   |           |       |           |   |   |   |
| As                  reported                                                                              |   | $              | (.03       | )              | $      | (.08 | ) |
| Pro                  forma                                                                                |   | $              | (.04       | )              | $      | (.09 | ) |

**NOTE      4 - RECEIVABLE FROM RELATED PARTY **

**NOTE      5 - EQUIPMENT & LATERAL DRILLING LICENSE **

----

**VERDISYS,      INC. **

**NOTES      TO CONDENSED FINANCIAL STATEMENTS **

**NOTE      6 - ACCRUED EXPENSES **

|                                                    |   |   |       |
|---------------------------------------------------------|--------|--------|------------|
| **Description**                                         |   |   | **Amount** |   |
| Gryphon                stock registration delay penalty |   | $      | 500,000    |   |
| Accrued                payroll                          |   |   | 459,259    |   |
| Litigation                settlement                    |   |   | 55,000     |   |
| Director                fees                            |   |   | 44,750     |   |
| Interest                                                |   |   | 59,634     |   |
| Other                                                   |   |   | 91,432     |   |
|                                                    |   |   |            |   |
|                                                    |   | $      | 1,210,075  |   |

**NOTE      7 - DEFERRED REVENUE **

**NOTE      8 - COMMITMENT **

**NOTE      9 - STOCKHOLDERS EQUITY **

----

**VERDISYS,      INC. **

**NOTES      TO CONDENSED FINANCIAL STATEMENTS **

**NOTE      10 - LITIGATION **

**NOTE      11 - BUSINESS SEGMENTS **

|                                              |   |                                                                                |       |           |   |
|---------------------------------------------------|--------|-------------------------------------------------------------------------------------|------------|----------------|--------|
|                                              |   | **For                  the Three Months Ended****March                  31,**  |       |
|                                              |   | **2005**                                                                       |       | **2004**  |   |
| Revenues                  from external customers |   |                                                                                |            |           |   |  |   |
| Lateral                  drilling                 |   | $                                                                                   | 14,981     |           | $      | 114,158 |   |
| Satellite                  communication          |   |                                                                                | 272,802    |           |   | 91,750 |   |
|                                              |   |                                                                                |            |           |   |  |   |
|                                              |   | $                                                                                   | 287,783    |           | $      | 205,908 |   |
|                                              |   |                                                                                |            |           |   |  |   |
| Operating                  profit (loss) 1        |   |                                                                                |            |           |   |  |   |
| Lateral                  drilling                 |   | $                                                                                   | (233,512   | )              | $      | (1,006,119 | ) |
| Satellite                  communication          |   |                                                                                | 48,217     |           |   | (73,328 | ) |
| Corporate                                         |   |                                                                                | (894,646   | )              |   | (1,294,887 | ) |
|                                              |   |                                                                                |            |           |   |  |   |
|                                              |   | $                                                                                   | (1,079,941 | )              | $      | (2,374,334 | ) |

----

**VERDISYS,      INC. **

**NOTES      TO CONDENSED FINANCIAL STATEMENTS **

**NOTE      12 - SUBSEQUENT EVENT **

**NOTE        13 - RESTATEMENT**

|                                             |   | **As                  reported** |      | **Adjustments** |   | **As                  restated** |   |
|--------------------------------------------------|--------|----------------------------------|-----------|-----------------|--------|----------------------------------|--------|
|                                             |   |                             |      |            |   |                             |   |
| License                  asset                   |   | $                                | 4,625,000 |            | $      | (4,625,000                       | )      | $ | - |   |
| Accumulated                  amortization        |   |                             | (637,505  | )               |   | 637,505                          |   |   | - |   |
| Net                  Book Value                  |   |                             | 3,987,465 |            |   | (3,987,465                       | )      |   | - |   |
|                                             |   |                             |      |            |   |                             |   |   |   |   |
| License                  receivable              |   |                             | -         |            |   | 900,000                          |   |   | 900,000 |   |
| Depreciation                  & amortization |   |                             | 118,148   |            |   | (88,339                          | )      |   | 28,909 |   |

**Item      2. Management’s Discussion and Analysis of Financial Condition and Plan of      Operations **

**Forward-Looking      Statements **

----

**Three      Months Ended March 31, 2005 Compared to Three Months Ended March 31,      2004**

*Satellite      Communications Services*
* *

*Lateral      Drilling Services*
* *

----

*Selling,      General and Administrative *

|                                      |   |                                                                            |      |                       |   |      |   |
|-------------------------------------------|--------|---------------------------------------------------------------------------------|-----------|----------------------------|--------|-----------|--------|
|                                      |   | **For                The Three Months Ended****March                31,**  |      | **Increase****(Decrease)** |   |
|                                      |   | **2005**                                                                   |      | **2004**              |   |
| Payroll                and related costs  |   | $                                                                               | 284,168   |                       | $      | 261,537   |   | $ | 22,631 |   |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| Option                and warrant expense |   |                                                                            | 25,000    |                       |   | 80,099    |   |   | (55,099 | ) |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| License                fee                |   |                                                                            | —   |                       |   | 735,192   |   |   | (735,192 | ) |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| Legal                fees                 |   |                                                                            | 57,583    |                       |   | 130,744   |   |   | (73,161 | ) |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| External                services          |   |                                                                            | 101,244   |                       |   | 241,844   |   |   | (140,600 | ) |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| Insurance                                 |   |                                                                            | 41,785    |                       |   | 217,775   |   |   | (175,990 | ) |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| Liquidated                damages         |   |                                                                            | —   |                       |   | 250,000   |   |   | (250,000 | ) |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| Travel                & entertainment |   |                                                                            | 6,299     |                       |   | 48,652    |   |   | (42,353 | ) |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| Office                rent                |   |                                                                            | 8,643     |                       |   | 36,766    |   |   | (28,123 | ) |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| Communications                            |   |                                                                            | 1,602     |                       |   | 19,256    |   |   | (17,654 | ) |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| Class                action settlement    |   |                                                                            | 503,500   |                       |   | —   |   |   | 503,500 |   |
|                                      |   |                                                                            |      |                       |   |      |   |   |   |   |
| Miscellaneous                             |   |                                                                            | 4,803     |                       |   | 9,214     |   |   | (4,411 | ) |
|                                      |   |                                                                            |           |                       |   |           |   |   |  |   |
|                                      |   | $                                                                               | 1,034,627 |                       | $      | 2,031,079 |   | $ | (996,452 | ) |
|                                      |   |                                                                            |           |                       |   |           |   |   |  |   |

*Net      Loss*
* *

**Liquidity      and Capital Resources **

----

**Subsequent      Event **

**Item      3. Controls and Procedures **

**Part      II. OTHER INFORMATION **

**Item      1. Legal Proceedings **

----

**Item      2. Unregistered Sales of Equity Securities and Use of Proceeds**

**Item      6. Exhibits and Reports on Form 8-K **

|                            |                                                                                                                                                                                                                                                                                                      |
|---------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| April 7, 2005         | Press                Release - Closing of Edge Capital Group, Inc. lawsuit settlement                and                receipt of $375,000 in cash.                                                                                                                                                      |
|                            |                                                                                                                                                                                                                                                                                                      |
| March 22, 2005        | Press                Release - Settlement of class action lawsuit.                                                                                                                                                                                                                                        |
|                            |                                                                                                                                                                                                                                                                                                      |
| March 14, 2005        | Material                Agreement - Assignment of License Agreement dated March 8, 2005 by                and                among Verdisys, Inc. and Maxim TEP, Inc.                                                                                                                                     |
|                            |                                                                                                                                                                                                                                                                                                      |
| February 22, 2005     | Press                Release - Settlement of contract claims by Gryphon Master Fund,                L.P.                                                                                                                                                                                                  |
|                            |                                                                                                                                                                                                                                                                                                      |
| February                4, 2005 | Material                Agreement - Settlement Agreement and Mutual Release dated January                19, 2005                by and among Verdisys, Inc., Eric McAfee, Edge Capital Group, Inc.                and                certain entities affiliated with Robert Frazier,                Sr. |

----

|                            |                                                                             |
|---------------------------------|----------------------------------------------------------------------------------|
| January                20, 2005 | Press                Release - Abrasive jetting drilling                process. |

|   |                                                                                                                                                                                                                                                                                                                                          |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1   | Settlement                Agreement and Mutual Release dated January 19, 2005 by and among                Verdisys,                Inc., Eric McAfee, Edge Capital Group, Inc. and certain entities                affiliated with Robert Frazier, Sr.; Filed February 4, 2005 with                the SEC,                Report on Form 8-K |
|   |                                                                                                                                                                                                                                                                                                                                          |
| 10.2   | Assignment                of License Agreement dated March 8, 2005 by and among Verdisys, Inc.                and                Maxim TEP, Inc.; Filed March 14, 2005 with the SEC, Report on Form                8-K                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                          |
| 10.3   | License                Agreement dated March 15, 2005, by and among Edge Capital Group,                Inc. or                its assignee and Verdisys, Inc.                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                          |
| 10.4   | Abrasive                Fluid Jet Rig Construction Agreement dated March 17, 2005, by and                among                Verdisys, Inc. and Alberta Energy Holding Inc.                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                          |
| 10.5   | Drilling                Rig Development and Management Agreement dated April 12, 2005, by                and                between Verdisys, Inc. and Advanced Drilling Services,                LLC                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                          |
| *31.1  | Certification                of Principal Executive Officer pursuant to Section 302                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                          |
| *31.2  | Certification                of Principal Accounting Officer pursuant to Section 302                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                          |
| *32.1  | Certification                of Principal Executive Officer pursuant to Section 1350                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                          |
| *32.2  | Certification                of Principal Accounting Officer pursuant to Section                1350                                                                                                                                                                                                                                          |

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**SIGNATURES      **

|                                |                              |                                        |
|-------------------------------------|-----------------------------------|---------------------------------------------|
|                                | **Verdisys,                Inc.** |
|                                |                              |                                        |
|                                | By:                               | /s/                David M. Adams, COO      |
|                                |                              | David                M. Adams               |
|                                |                              | Chief                Operating Officer      |
|                                |                              | Principal                Executive Officer  |
|                                |                              |                                        |
| Date:                March 29, 2006 |                              |                                        |
|                                |                              |                                        |
|                                | By:                               | /s/                John O’Keefe, CFO  |
|                                |                              | John                O’Keefe           |
|                                |                              | Chief                Financial Officer      |
|                                |                              | Principal                Accounting Officer |
|                                |                              |                                        |
| Date:                March 29, 2006 |                              |                                        |

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