The industry cost shared program aims to benchmark drilling rates of penetration in selected simulated deep formations and to significantly improve ROP through a team development of aggressive diamond product drill bit--fluid system technologies. Overall the objectives are as follows: Phase 1--Benchmark ''best in class''diamond and other product drilling bits and fluids and develop concepts for a next level of deep drilling performance; Phase 2--Develop advanced smart bit-fluid prototypes and test at large scale; and Phase 3--Field trial smart bit-fluid concepts, modify as necessary and commercialize products. As of report date, TerraTek has concluded all major preparations for the high pressure drilling campaign. Baker Hughes encountered difficulties in providing additional pumping capacity before TerraTek's scheduled relocation to another facility, thus the program was delayed further to accommodate the full testing program.