DI Industries, Inc. announces unaudited operating results for the three and nine months ended September 30, 1995.

HOUSTON--(BUSINESS WIRE)--Nov. 16, 1995--DI Industries, Inc. (AMEX-DRL) (the "Company") announced unaudited results of operations for the three and nine months ended Sept. 30, 1995.

The Company reported a Net Loss of $1,350,000 ($.03 per share) for the quarter ended Sept. 30, 1995 compared to a Net Loss of $823,000 ($.02 per share) for the quarter ended Sept. 30, 1994. The Net Loss from Continuing Operations for the quarter ended Sept. 30, 1995 was $1,234,000 ($.03 per share) compared to a Net Loss from Continuing Operations of $872,000 ($.02 per share) for the quarter ended Sept. 30, 1994. The Net Loss from Discontinued Operations was $116,000 (nil per share) for the quarter ended Sept. 30, 1995 compared to Net Income of $49,000 (nil per share) for the comparable 1994 quarter. Revenues from Continuing Operations were $27,106,000 for the third quarter 1995, an increase of 57 percent over $17,215,000 in Revenues during the Sept. 30, 1994 quarter.

The quarter ended Sept. 30, 1995 includes an additional $116,000 provision for Loss on Discontinued Operations resulting from the previously announced sale completed on Aug. 9, 1995 of the Company's subsidiary holding its producing oil and gas properties to Unit Petroleum Company (a subsidiary of Unit Corporation of Tulsa, Okla.). This brings the total 1995 Loss on Discontinued Operations to $670,000. The quarter ending Sept. 30, 1995 also includes a provision for estimated additional net contract costs of $320,000 for a geothermal drilling project in Mexico that will be completed during the fourth quarter, 1995.

The Company's Net Loss for the nine months ended Sept. 30, 1995 was $5,245,000 ($.14 per share) compared to a Net Loss of $3,037,000 ($.08 per share) for the nine months ended Sept. 30, 1994. The Net Loss from Continuing Operations for the nine months ended Sept. 30, 1995 was $4,575,000 ($.12 per share) compared to a Net Loss from Continuing Operations of $3,124,000 ($.08 per share) for the nine months ended Sept. 30, 1994. The Net Loss from Discontinued Operations was $670,000 ($.02 per share) for the nine months ended Sept. 30, 1995 compared to Net Income of $87,000 (nil per share) for the nine months ended Sept. 30, 1994. Revenues from Continuing Operations were $72,603,000 for the nine months ended Sept. 30, 1995, an increase of 58 percent over $45,929,000 in Continuing Operations Revenues for the 1994 nine month period.

Max Dillard, president of the company, commented that "the increases in revenues for both the quarter and nine months ended Sept. 30, 1995, resulted from additional rigs operated in Argentina, Venezuela and Mexico in 1995. The company has paid a high entry price in start-up costs to place 15 rigs under contract in Argentina and Venezuela in a 12-month period. The good news is that the rigs are now there and on station. The September quarter was better than the previous quarters as the final rig start-ups were completed."

DI Industries, Inc., headquartered in Houston, Texas, is a holding company whose subsidiaries are primarily engaged in the business of providing both contract oil and gas and geothermal drilling services, well workover services, and commercial drilling services. Operations are currently carried out in the United States, Mexico, Central America and South America. -0-

                                   QUARTER ENDED     NINE MONTHS ENDED
                                   SEPTEMBER 30,        SEPTEMBER 30,
                                 -----------------   ------------------
                               (in thousands, except per share amounts)

                                               UNAUDITED

                                   1995      1994      1995      1994
                                 -------   -------   -------   -------
CONTINUING OPERATIONS:

REVENUES                         $27,106   $17,215   $72,603   $45,929

OPERATING LOSS                    (1,565)     (837)   (4,325)   (3,468)

LOSS FROM CONTINUING OPERATIONS   (1,234)     (872)   (4,575)   (3,124)
                                 -------   -------   -------   -------

DISCONTINUED OPERATIONS:

INCOME (LOSS) FROM OIL & GAS
 OPERATIONS                           --        49        (4)       87

LOSS FROM SALE OF OIL AND
 GAS PROPERTIES                     (116)       --      (666)       --
                                 -------   -------   -------   -------
INCOME (LOSS) FROM DISCONTINUED
 OPERATIONS                         (116)       49      (670)       87
                                 -------   -------   -------   -------
NET LOSS                         $(1,350)  $  (823)  $(5,245)  $(3,037)
                                  =======   =======   =======   =======
NET LOSS PER
 COMMON SHARE:

CONTINUING OPERATIONS            $  (.03)  $  (.02)  $  (.12)  $  (.08)

DISCONTINUED OPERATIONS               --        --      (.02)       --
                                 -------   -------   -------   -------
   TOTAL                         $  (.03)  $  (.02)  $  (.14)  $  (.08)
                                 =======   =======   =======   =======

WEIGHTED AVERAGE SHARES OF
 COMMON STOCK OUTSTANDING         38,669    38,584    38,669    38,585

CONTACT: DI Industries Inc., Houston

Thomas L. Easley, 713/874-0202