Airgen Corporation to Acquire Petro-Therm Enterprises Ltd.

CALGARY, ALBERTA--(BUSINESS WIRE)--Nov. 8, 1996--Airgen Corporation (Alberta Stock Exchange AIR.A.) Airgen Corporation announced today that it has entered into an option agreement to purchase Petro-Therm Enterprises Ltd., a private oilfield service company.

Subject to financing, regulatory and other approvals and the usual conditions, the purchase is expected to close December 31, 1997.

Airgen Corporation is an Alberta based oilfield service company. It acquired the assets of Alberta Mobile Air Services Ltd. in February 1995, a company that provided pipeline pressure testing and drying services. Earlier this year Airgen expanded into the underbalanced horizontal drilling market through the acquisition of four nitrogen membrane units, which are used in conjunction with its mobile compression assets to extract nitrogen from air on-site. Airgen completed a $1,800,000 public offering and commenced trading on the Alberta Stock Exchange in March, 1996.

Petro-Therm is a Lloydminster based company that has been the leading supplier of portable steam services for heavy oil thermal recovery pilots for 15 years. The growth in Steam Assisted Gravity Drainage (SAGD) pilots over the last few years has increased demand for the company's services by 75 percent in each of the last two years.

The purchase price of $6,500,000 will be financed through a combination of internal funds, vendor equity take-back, debt, and an equity issue. An equity issue of $6,000,000 is contemplated to conclude the transaction and provide expansion capital. Terms of an equity issue have not been finalized with an agent.

Airgen Corporation is listed on the Alberta Stock Exchange and trades under the symbol "AIR.A".

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The Alberta Stock Exchange neither approves nor disapproves of the information contained herein.

CONTACT: Airgen Corporation

Alan Goddard, 403/299-4701