Destiny To Acquire Oilfield Service Companies.

CALGARY, Alberta--(BUSINESS WIRE)--Nov. 6, 1998--Destiny Resource Services Corp. (TSE/ASE:DSC) announced today it has entered into an agreement to purchase all the issued and outstanding shares of the McConnell Group of Companies, a 25-year-old privately held integrated group of oilfield service companies based in Brooks, Alberta.

Destiny will pay $8.7 million for the acquisition. The purchase price will consist of a $5.0 million cash payment and the issuance of 1,175,000 common shares of Destiny at $3.15 per share. Destiny will also assume debt totaling approximately $3.5 million.

Also, as part of the transaction with Destiny, McConnell has entered into an agreement to purchase all the issued and outstanding shares of JC Electric Ltd., an electrical contracting company, also located in Brooks, Alberta. The purchase price for JC Electric is $2.4 million. The purchase price, which will be paid by Destiny, will consist of $1.8 million in cash payable over two years and the issuance of 200,000 common shares of Destiny at $3.00 per share.

The McConnell Group and JC Electric generated approximately $30 million (unaudited) in revenue during the past 12 months of operations.

Adrian Erickson, President and CEO of Destiny stated "The acquisition of McConnell and JC Electric is another step in Destiny's growth strategy of adding complementary companies that diversify our range of services, while enhancing equipment and personnel utilization with a focus towards natural gas exploration in strategic geographic regions. The McConnell Group and JC Electric combination offer complete 'one stop' oilfield services from pipeline contracting to facility construction and year-round maintenance."

Mr. Erickson added, "Our interest in McConnell is based on the fact that, as a full range service company, they offer a strong fit with our stated growth strategy. Because they are located in the gas prone area of South Eastern Alberta, their peak season tends to be opposite to ours, which will allow us to get better utilization of equipment and resources from both Destiny and McConnell. We also intend to capitalize on McConnell's expertise by exporting the company's technology to our expanding international operations. Like ourselves, McConnell has a 25-year track record in this business and a reputation as a premier operator in the oil and gas industry. We look forward to working together."

The effective date of both acquisitions will be Sept. 1, 1998. These acquisitions are subject to financing.

Destiny Resource Services Corp. is a Calgary based service company providing integrated services to the oil and gas industry in Canada, the United States, Central and South America, the Middle East, Africa and Southeast Asia.

Neither The Toronto Stock Exchange nor The Alberta Stock Exchange has approved nor disapproved of the information contained herein.