Barnwell Industries, Inc. Reports Year-End Results.

HONOLULU--(BUSINESS WIRE)--Dec. 7, 1999--

Barnwell Industries, Inc., (ASE-BRN) today reported net earnings of $520,000 ($0.39 per share) for the year ended September 30, 1999, as compared to a net loss of $3,890,000 ($2.95 per share) for the year ended September 30, 1998.

For the quarter ended September 30, 1999, Barnwell reported net earnings of $340,000 ($0.26 per share), as compared to a net loss of $160,000 ($0.12 per share) for the quarter ended September 30, 1998. Fiscal 1998's loss included $2,995,000 of non-cash write-downs, primarily of the Company's U.S. oil and natural gas properties.

Mr. Morton H. Kinzler, Chairman and Chief Executive Officer of Barnwell, commented, "The increase in earnings was due to significant increases in revenues generated by both our oil and natural gas and contract drilling segments, and to the absence of write-downs in fiscal 1999. Total revenues increased to $15,160,000 in fiscal 1999, up $3,240,000 (27%) from $11,920,000 in fiscal 1998. The increase in revenues was attributable to both the Company's contract drilling segment, which generated $2,720,000 more revenues in fiscal 1999, as compared to fiscal 1998, and the Company's oil and gas segment, which generated higher revenues as a result of 14% and 8% increases in natural gas and oil prices, respectively. These increases in product prices occurred in the latter half of this year and we expect oil and natural gas prices to remain above last year's prices for all of fiscal 2000.

"We believe the increase in the Company's natural gas prices reflects a new more permanent pricing structure for Canadian natural gas. This is due in large part to the opening in late 1998 of the Northern Border natural gas pipeline which transports natural gas from Alberta to Chicago. This new pipeline, which is capable of delivering over 700 million cubic feet of natural gas per day, has had a significant positive impact on the natural gas price received by the Company and other Alberta producers. The pipeline has increased accessibility to U.S. markets and reduced the amount of natural gas available for the intra Alberta market. As a result, Alberta spot natural gas prices have increased and the basis differential between NYMEX and Alberta natural gas prices has decreased significantly, at times to less than the incremental transportation costs for Alberta natural gas. The Company has directed substantially more of its gas volumes to the Alberta spot market to take advantage of the increased spot prices. Additionally, natural gas is the environmentally favored fossil fuel and we expect to see continued increases in demand for natural gas."

The Company's 50.1% owned partnership, Kaupulehu Developments, continues to make progress towards the final zoning approvals for its leasehold land position adjacent to the Four Seasons Resort Hualalai at Historic Ka'upulehu on the island of Hawaii. The Planning Commission of the County of Hawaii has scheduled a hearing on Kaupulehu Developments' application for a Special Management Area Use Permit for late December 1999. -0-

                              COMPARATIVE OPERATING RESULTS
                         Year ended               Quarter ended
                        September 30,             September 30,
                      1999        1998         1999         1998

Revenues       $ 15,160,000   $ 11,920,000   $ 5,280,000  $ 2,810,000

Net earnings
  (loss)       $    520,000   $ (3,890,000)  $   340,000  $  (160,000)

Basic and diluted
 earnings (loss)
 per share     $       0.39   $      (2.95)  $      0.26  $     (0.12)

Weighted average
 shares and
 equivalent
 shares
 outstanding      1,316,952      1,319,719     1,316,952    1,316,952
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