Destiny Announces Year End Revenue And Earnings.

CALGARY, ALBERTA--(BUSINESS WIRE)--Sept. 16, 1999--

Destiny Resource Services Corp. (TSE:DSC.) today announced its fourth quarter and annual financial and operating results for the fiscal year ended May 31, 1999.

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                            Three Months Ended    Year Ended
                                May 31              May 31
--------------------------------------------------------------
(unaudited)                   1999      1998     1999    1998
(thousands, except per
 share amounts)                 $         $        $       $
OPERATING RESULTS

Revenue
  Front End                  2,487     3,690    23,926  20,823
  Surface Preparation        1,966     1,822    11,365   1,822
  Post Drilling     t expenses             13,691    10,209    62,053  38,301
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Gross margin                (2,317)    3,020     5,843   9,697
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Other expenses (income)
  General and administrative 1,232       775     3,831   2,717
  Depreciation, amortization
   and depletion             1,856     1,018     6,556   2,345
  Interest                   1,015       133     2,344     485
  Writedown of Goodwill      5,017     1,965    18,303   5,431
--------------------------------------------------------------
Income (loss)b----------------------------------------------------

Earnings (loss) per share
  Basic                      (0.79)     0.05     (0.95)   0.35
  Fully diluted              (0.79)     0.04     (0.95)   0.30
Weighted average shares
 outstanding (000s)
  Basic                     14,366     8,804    13,862   8,120
  Fully diluted             19,703    11,139    17,666  11,139
--------------------------------------------------------------
------------ssets                         54,455     46,390
---------------------------------------
Share capital                        24,792     16,027
Retained earnings                    (7,624)     5,756
------------------- announced today results for the
company's fourenue for the fiscal year
ended May 31, 1999 inch fourth quarter net
earnings of $472,000 in fiscal 1998. Net loss for fiscal year 1999,
after one-time adjuone time adjustments totaling $6.9 million, for fiscal 1999
was
$0.95 basic compared with net earnings per share of $0.35 basic and
$0.26 fully diluted in fiscal 1998.
     Cash flow from operations in fiscal 1999 was a negative $834,000
compared with positive cash flow from operationuent to year-end, Destiny
completed a debt and
0,000 and provided for doubtful debts of $407,000. At the same
time, management in its assessment of goodwill at May 31, 1999,
elected to writedown goodwill totaling $5 million as expectations
associated with certain of its acquisitions had not materialized as
planned.
     Mr. Adrian Erickson, President & Chief Executive Officer of
Destiny stated: " During the first half of fiscal 1999, we continued
our strategy of acquiring complimentary businesses in strategic
geographic regions, by acquiring JD & Me Holdings, Sharp Environmental
& Triple B Reclamation and the McConnell Group of Companies Inc. These
acquisitions contributed to the revenue growth experienced by the
company last year. However, this expansion took place as our industry
was experiencing a strong decline of activity as a result of weak
crude oil prices and reduced or delayed exploration programs by our
clients. This negative environment placed strong downward pressure on
pricing of our services as we fought to maintain market share and
consequently resulted in significantly lower margins."
     Mr. Erickson concluded: "On a more positive note, industry
fundamentals are currently very favorable. We are already experiencing
a strong increase in activity in all sectors. In Destiny's
geographical areas of activity, particularly Northwest Alberta &
Northeast British Columbia we expect levels of activity to continue to
pick up. We are confident that Destiny will return to profitability in
our second quarter ending November 30, 1999, as all of our divisions
continue to enjoy an increase in their volume of business as well as a
strengthening of their margins. We also expect to benefit from our
acquisition strategy in the current fiscal year as Destiny continues
to increase utilization rates by deploying the same resources, both
equipment and manpower, to front end, surface preparation and post
drilling services."
     Destiny Resource Services Corp. is a Calgary based oilfield
service company providing essential integrated services to the
seismic, exploration and production industries in Canada, the United
States and internationally.
     The Toronto Stock Exchange has neither approved nor disapproved
of the information contained herein.