Announces Results for the Three Months Ended March 31, 2001.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--April 24, 2001

Ryan Energy Technologies Inc. (TSE: RYN.) ("Ryan"), of Calgary, Alberta reported that for the quarter ended March 31, 2001 it generated consolidated net earnings from continuing operations of $2.7 million ($0.12 per common share) from consolidated revenues of $27.0 million.

This compares to consolidated net earnings from continuing operations of $0.6 million ($0.03 per common share) from consolidated revenues of $15.2 million for the quarter ended March 31, 2000. The improvement made in the Company's financial performance is attributed to its efforts to enhance internal communication, increase efficiency and improve utilization, the acquisition of the operating assets and directional business of Smith Services, Directional Group, a business unit of Smith International, Inc. ("Smith directional") and increased industry activity.

Ryan generated $27.0 million in revenues for the three months ended March 31, 2001 as compared to $15.2 million during the three months ended March 31, 2000, an increase of $11.8 million or 78 percent. Ryan's 2001 revenues were comprised of $25.5 million from the provision of MWD/LWD and horizontal and directional drilling services and $1.5 million from the provision of Tru Vu(R) Well Site Data Management ("WDM") services, equipment sales and software licenses.

Revenue from Ryan's Canadian operation increased to $14.5 million for the three months ended March 31, 2001 from $11.8 million during the three months ended March 31, 2000, an increase of $2.7 million or 23 percent. Significant increases in western Canadian drilling activity and the Company's deliberate focus on improving its system utilization were factors in generating the growth in Canadian based revenues. During the first quarter of 2001, oil and natural gas companies drilled 1,367 horizontal and directional wells as compared to 1,310 during the first quarter of 2000, an increase of 4 percent. For the three months ended March 31, 2001, Ryan maintained a twenty-seven concurrent job capacity in horizontal and directional drilling in Canada, which compares to a twenty concurrent job capacity during the same period of 2000. The Canadian operation also deployed twelve Tru Vu(R) WDM systems in underbalanced drilling applications throughout the quarter, unchanged from the number of systems deployed during the first quarter of 2000.

Revenue from the Company's operation in the United States totaled $11.3 million during the three months ended March 31, 2000 as compared to $3.1 million for the three months end March 31, 2000, an increase of $8.2 million or 265 percent. Ryan's United States operation provides services to markets located in the northeastern United States, the states adjoining the Gulf of Mexico and the shallow and inland water markets of the Gulf. During the first quarter of 2001, oil and natural gas companies drilled 1,004 horizontal and directional wells in the United States as compared to 702 during the first quarter of 2000, an increase of 43 percent. During the three months ended March 31, 2001 the Company increased its horizontal and directional drilling concurrent job capacity in the United States to eighteen as compared to eight for the three months ended March 31, 2000. This increase in concurrent job capacity was primarily a result of the Smith directional acquisition, which occurred on January 10, 2001. As at March 31, 2000, Ryan had twenty-nine Tru Vu(R) WDM systems located in the United States as compared to ten as at March 31, 2000.

Revenues from Ryan's Venezuela operation increased by $0.9 million to $1.2 million for the three months ended March 31, 2001 as compared to the same period during 2000. Ryan continues to view Venezuela as a means to leverage its technology and improve the utilization of its MWD/LWD and Tru Vu(R) equipment and personnel. As of March 31, 2001, Ryan had a concurrent job capability of four MWD/LWD systems and twelve Tru Vu(R) WDM systems in Venezuela.

Direct costs are comprised of field related expenses as well as costs directly attributed to the provision of the Company's services such as sustaining engineering, well planning and coordination and related facility costs. These expenditures totaled $17.4 million for the three months ended March 31, 2001 as compared to $10.5 million for the three months ended March 31, 2000, an increase of $6.9 million or 66 percent, and represented 64 percent of revenues during the first quarter of 2001 as compared to 69 percent during the same period of 2000. This resulted in an improvement in Ryan's gross profit to 36 percent of revenues during the first quarter of 2001 from 31 percent of revenues during the first quarter of 2000. The primary factors leading to the improved gross profit margins were increased equipment and personnel utilization, reduced reliance on third party suppliers for rental equipment and repairs, improved training techniques and increased activity leading to improved pricing of the Company's services.

General, administrative and marketing expenses for the three months ended March 31, 2001 increased to $2.5 million as compared to $1.6 million for the three months ended March 31, 2000. This represents an increase of $0.9 million or 56 percent. This increase is a result of the Company's acquisition of Smith directional, the expansion of Tru Vu(R) WDM services, its variable compensation arrangements and increased sales and marketing activities. As a percentage of revenues these expenses were consistent with the first quarter of 2000 at 10 percent for the three months ended March 31, 2001.

Depreciation and amortization expenses increased to $2.0 million for the quarter ended March 31, 2001 as compared to $1.4 million for the quarter ended March 31, 2000. Capital expenditures of $3.1 million and the Smith directional acquisition accounted for the increase in depreciation and amortization expenses.

The Company reported an income tax expense of $1.9 million during the three months ended March 31, 2001 as compared to an income tax expense of $0.4 million during the three months ended March 31, 2000. Ryan's effective tax rate for the quarter was 41 percent as compared to 39 percent during the first quarter of 2000.

During the three months ended March 31, 2000 the Company discontinued its operation in Abu Dhabi and recorded a net loss from discontinued operations of $0.5 million, net of revenues of $0.5 million and income tax recoveries of $0.2 million.

The Company reported net earnings of $2.7 million ($0.12 per share) for the three months ended March 31, 2001 compared to net earnings of $0.1 million ($0.00 per share) for the three months ended March 31, 2000. Cash flow from operations, before changes in non-cash working capital balances, was $4.6 million in the first quarter of 2001, compared to $1.9 million in first quarter of 2000.

FINANCIAL HIGHLIGHTS
                 Period ended March 31, 2001
            ($ thousands, except per share amounts)

                     Three Months          Three Months
                         03/31/01              03/31/00
                       ---------------------------------
Revenue                $27,043                  $15,226
Gross profit             9,643                    4,739
General, administrative
 and marketing           2,520                    1,553
Bad debt expense             0                      654
Research and development
 expense                   178                      128
Interest expense           313                       82
Depreciation and
 amortization            2,006                    1,385
Net earnings from
 continuing operations
 before income taxes     4,626                      937
Income tax expense       1,885                      364
Net earnings from
 continuing operations   2,741                      573
Per share                 0.12                     0.03
Loss from discontinued
 operations, net of tax     -                      (506)
Per share                   -                     (0.03)
Net earnings             2,740                       67
Per share                 0.12                     0.00

Cash flow from
 continuing operations   4,648                    1,893
Per share                 0.21                     0.08
Earnings from continuing
 operations before
 interest, taxes,
 depreciation and
 amortization            6,945                    2,404
Per share                 0.31                     0.10

Ryan Energy Technologies Inc. is an industry leader in the development and provision of drilling technology and services including Measurement While Drilling (MWD), Logging While Drilling (LWD), Downhole Drilling Motors and Well Site Data Management (WDM) services. Ryan Energy Technologies Inc. provides these services to major, intermediate, and junior oil and gas companies in Canada, the United States and Venezuela.

Certain statements included herein may constitute "forward-looking statements" with the meaning of certain securities legislative measures. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, but are not limited to, fluctuations of energy commodity prices, changes in levels of drilling activity, political uncertainties in some foreign jurisdictions, the impact of recent acquisitions and other factors described in the Company's publicly available Securities filings.

Ryan Energy Technologies Inc. Trading Symbol "RYN" on the TSE The Leader in Underground Intelligence(TM)