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 LEDUC, Alberta, July 7 /PRNewswire/ -- William J. Gordica, president and chief executive officer of Beta Well Service (AMEX: BWS), responded today to an article titled "From Russia With Doubts" published in the July 19 issue of Forbes Magazine:
 "While Beta has a policy of generally not responding to published articles or rumors regarding the company or its securities, the significant level of inaccuracies in the article of this widely circulated publication, combined with the coincidental commencement of short selling of the company's stock just prior to the articles' release, has prompted us to set the record straight." As a public company Beta makes information available to the investment community on a timely basis so investors can make judgments about the company on an informed basis. All companies have proprietary information which they do not or cannot disclose. Beta is restricted by confidentiality agreements from disclosing certain details of its operating contracts.
 Beta's International Operating Margin
 Forbes' comments with respect to the company's alleged 80 percent operating margin in Russia and its sustainability are inaccurate and misleading. Any means in through which Forbes or its analysts could have calculated this number has no recognized analytical validity. It represents a spurious manipulation of our published information. Beta has consistently refused to comment on its operating margins in Russia due to the above mentioned confidentiality agreements covering this subject with the company's client. The one example shown to the company's underwriters during its initial public offering presentation, illustrated the financial results for one quarter and was subject to a variety of stated assumptions. Since that time the company's only comment with respect to Russian operating margins are that they are higher than the margins achieved in its domestic operations for a variety of reasons including: substantially higher level of risk and uncertainty in doing business in Russia; the intricacy of moving several hundred people and complex oil and gas service equipment 12 time zones from its home base; and the significant risk to people and equipment in operating in harsh climatic conditions. The only accurate component about the comment was that the company is getting paid in hard currency not rubles. The statement made in the article was done so in spite of the company stating for the record that the 80 percent operating margin is misleading.
 With respect to the sustaining of such margins, the company has made its position clear that it will do business in Russia as long as it is providing a valued serviced to its client, and as long as Beta is compensated in a fair and equitable fashion. The Forbes article again inaccurately reports that Kogalymneftegaz, the state-owned local oil production association in the Kogalym region of western Siberia has more than 2,000 oil wells down for "minor" repairs. The fact is that Beta has been involved from its first day on these contracts with major, not minor, repairs in one of the harshest climatic and geographic regions in the world. In fact all of the wells which Beta is servicing are non- producing wells. The wells which Beta has been asked to work on are wells whose needs are beyond the Russian service company's capability at this time.
 Beta's Entry to Russia
 The Forbes article inaccurately states that Beta was in a position to take the risk of operating in Russia due in part to its default on its bank loans. If anything this would make a high-risk venture less likely to occur. The fact is that Beta has weathered the most serious depression in the oil and gas industry in Canada successfully with the support of all of its financial institutions. In spite of adverse operating results, Beta's shareholders and financial institutions were prepared to allow Beta to risk over $7 million to undertake its international contracts. The fact is that the company's financial institutions provided additional working capital to Beta because of their long-standing confidence in Beta and its ability to perform under difficult and complex circumstances.
 Beta's High Hourly Fee Structure
 The Forbes article goes on to inaccurately report the hourly fee received by Beta. The article states that Calgary Overseas Development, the company's client, "pays for the firm's labor, depreciation, fuel, transport of equipment and personnel to and from Siberia and so on." This is not true and management clearly stated that to Forbes reporters in connection with this article. Calgary Overseas Development pays for transportation, logistics and infrastructure in Russia, the balance is paid for by Beta.
 Forbes Response From Russia's Ministry of Fuel and Energy
 Beta is cognizant of the business climate in Russia and in all instances has endeavored to be responsive to the needs of the industry. Nevertheless, it is accurate to report that our contract has been scrutinized by not only our client, but the appropriate Russian agencies and that all parties have been satisfied with the terms as well as the compliance with local rules or guidelines, and including profit constraints.
 Bill Gordica's Financial Participation in the Offering
 The article inaccurately notes that Bill Gordica "Pocketed $8.3 million in cash and at least $5 million worth of stock in Conversion Industries." This is not the case and again, Forbes inaccurately reported the arrangement between the company, Gordica and Conversion Industries. No cash has been received by Gordica. Further, the 307,000 shares of Conversion common stock received by Gordica are unregistered and cannot be sold without filing a registration statement. John P. McGrain, chairman of Conversion Industries, stated that, "We are very pleased with our acquisition of Beta shares for the conversion shareholders, and more than 3,000 shareholders have prospered through their Beta ownership which is in conflict with the Forbes conclusion that only Mr. Gordica is a winner. I only wish Conversion had more opportunities like Beta to pass on to our shareholders."
 Beta's Underwriter Is Conversion Industries
 Again, Forbes inaccurately reports that Conversion Industries is Beta's "underwriter." Although Conversion has statutory liability as an underwriter due to the distribution of Beta shares to its shareholders, reading the first page of the company's prospectus will clearly identify that the underwriter is Tamaron Investments.
 We will not respond to other inaccurate or misleading comments made in the article attributed to "sources or knowledgeable sources," except to say that independent communication with certain sources referred to in the article have noted that their comments to Forbes were printed out of context or blatantly inaccurate.
 Beta's position in Russia is strengthening daily. We are now successfully operating with world-class equipment and people in an international marketplace where there is a significant shortage of specialized equipment and modern technology. We believe that our position in this marketplace will continue into the future.
 Beta Well Service provides well servicing, workovers and completion services to both major and independent oil companies in Canada and for the past year, has provided similar services within the Republic of Russia, through a 75 percent-owned subsidiary.
 -0- 7/7/93
 /CONTACT: William J. Gordica, president & CEO of Beta Well Service, 403-290-0585; or William F. Coffin of Coffin Communications Group, 818-578-0500, for Beta Well Service/

CO: Beta Well Service; Forbes ST: Alberta IN: OIL PUB SU:

LM-JL -- LA009 -- 9067 07/07/93 12:22 EDT
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Date:Jul 7, 1993

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