COMPUTALOG LTD. ADOPTS SHAREHOLDER RIGHTS PLAN.

CALGARY, Alberta--(BUSINESS WIRE)--March 12, 1996--Computalog Ltd. announced today that its board of directors has adopted a Shareholder Rights Plan designed to encourage the fail treatment of shareholders in connection with any takeover offer for the Company. The rights plan addresses the Company's concerns that existing Canadian legislation does not allow sufficient time, if a takeover bid is made, for either the board of directors or the shareholders to properly consider a takeover bid, or for the board of directors to seek alternatives to such a bid and also addresses the Company's concern that all shareholders be treated equally in any transaction involving a change of control of the Company.

The rights plan, which is effective immediately but is subject to regulatory approval, will provide the board of directors of the Company and the shareholders more time to fully consider any unsolicited takeover bid for the Company. It will also allow more time for the board of directors to pursue, if appropriate, other alternatives to maximize shareholder value, Shareholders will be asked to confirm the rights plan at the Annual and Special Meeting of the shareholders to be held on May 15,1996.

The rights issued under the rights plan become exercisable only when a person, including any party related to it or acting jointly with it, acquires or announces its intention to acquire 20 percent or more of the Company's outstanding shares without complying with the "Permitted Bid" provisions of the rights plan. Should such an acquisition occur, each right would, upon exercise, entitle a rights holder, other than the acquiring person and related persons, to purchase common shares of the Company at a 50 percent discount to the market price at the time. Certain holdings of common shares, such as positions held by investment managers, trust companies for managed accounts and pension plans will not trigger the rights plan unless the holders are participating in making a takeover bid for the Company.

Under the rights plan, a Permitted Bid is a bid made to all shareholders that is open for not less than 60 days. If at the end of 60 days at least 50 percent of the outstanding shares, other than those owned by the offeror and certain related parties have been tendered, the offeror may take up and pay for the shares but must extend the bid for a further 10 days to allow other shareholders to tender.

Ted Hanlon, chairman of Computalog, commented that "the rights plan was not adopted in response to, or in anticipation of, any specific effort to acquire control of the Company and is not aimed at blocking bids but is designed to ensure that any acquisition of control is through a public offer to all shareholders and that sufficient time is available to evaluate any offer. The rights plan is similar to plans adopted recently by several other Canadian companies".

Computalog provides wellbore knowledge and solutions through its electric wireline and directional drilling services and products. These services and products enable oil and gas producers to manage risk and maximize production. The Company's common shares trade on the Toronto Stock Exchange (symbol CGH) and NASDAQ National Market (symbol CLTDF).

CONTACT: Computalog, Inc.

Ted Hanlon, 403/265-6060