COMPUTALOG LTD. ANNOUNCES THREE MONTH RESULTS.

CALGARY, Alberta--(BUSINESS WIRE)--APRIL 27, 1995--Computalog Ltd. announced today that for the three month period ended March 31st, 1995, it generated a net income of $5,575 (50 cents per share on a fully diluted basis) from revenues of $37,212.

Further details and a comparison to financial results for the same quarter in 1994, are provided as follows:

                                              1995           1994
Revenue                                    $37,212        $30,948

Operating Expenses                          23,209         19,886
Selling, general & administrative            2,804          3,195
Depreciation & amortization                  1,727          1,286
Research & development                       1,060            845
Loss (gain) on foreign exchange               (30)          (103)
Interest                                        36            245
                                          --------        -------
Net income before taxes                    $ 8,406         $5,594

Income tax expense                           2,831             21
Net Income                                 $ 5,575        $ 5,573
                                          --------        -------
Earnings per share
  Basic                                     $ 0.74         $ 0.75
                                          --------        -------
  Fully Diluted                             $ 0.50         $ 0.48
                                          --------        -------
  Cash flow from operations                $ 7,288        $ 6,859

The 20 percent increase in revenue over the first quarter in 1994 was attained with an average Canadian drilling rig count as presented by Oilweek Pulse, of 364 and a total of 3,227 wells completed in Canada, increases over last year of 14 percent and 8 percent respectively. The average rig count in the United States, as reported by Baker Hughes, decreased by 7 percent to 705 for the same period. In this first quarter, 69 percent of Computalog's consolidated revenues were generated in Canada, 24 percent in the United States and 7 percent from international operations.

Operating expenses amounted to 62 percent of revenue compared to 64 percent in 1994 and net income before taxes, increased by 50 percent. On a pre-tax basis, 45 cents of every dollar in incremental revenue went to earnings. Since 1995 the first quarter results of 1995 include a $2,831 provision for income taxes and no comparable provision was necessary in 1994, the earnings after tax are essentially the same in both years.

The improved pre-tax margins resulted from increased revenue in the Company's high margin directional drilling business and stronger financial performance from Computalog's United States and international operations. Significant margin contribution gains came from service operations in Venezuela and equipment sales to Russia, China and other countries. It is also of note that the Company performed a 10 well Pulsed Neutron Decay logging services program for an Argentinean oil company looking for bypassed hydrocarbons. This is the first services Computalog has provided to that country. Margins from Canadian wireline operations were consistent with 1994. Cash flow from operations before working capital items, increased by $429 over cash flows generated in 1994 and as of March 31st, 1995, the Company had bank operating loans outstanding of $1,679 and cash on hand of $1,071.

Will Honeybourne, President and Chief Executive Officer of Computalog Ltd., commented on these results by saying "Our Canadian operations had another great quarter. It is also very encouraging to see the financial performance improvements from the U.S. and international segments. The recent award of ISO9OO1 certification for our Fort Worth research and manufacturing organization is yet another important achievement this year." This certification enhances our ability to better service our customers.

Commenting on the business outlook, Mr. Honeybourne said "The current softness in North American natural gas prices is of concern in the short term. However, some recent firming in gas prices and an expected stronger long-term outlook, are encouraging for our future. In addition, the strengthening of oil prices should benefit the North American and international markets in which Computalog provides services and products." The Canadian Association of Petroleum Producers has estimated that approximately 9,000 to 10,000 wells will be drilled in Canada as compared to 11,005 in 1994.

Computalog provides wellbore knowledge and solutions through its electric wireline and directional drilling services. These services 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 the NASDAQ National Market (symbol CLTDF).

CONTACT: J.W.G. Honeybourne, 403/265-6060

L.A. Cornez, 403/265-6060