A horizontal direction drilling system comprises a power pack coupled to a source of compressed air and a water reservoir and forms a mixture of compressed air, water, and oil. The horizontal direction drilling system further comprises a steerable horizontal drill. The steerable horizontal drill includes an air powered reciprocating hammer, and a drill head. The steerable horizontal drill receives the mixture to power the reciprocating hammer. The drill head includes a drill face and the mixture exits the steerable horizontal drill through the drill face.