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BETA WELL SERVICE INTENDS TO PURCHASE OPERATIONS OF QUEST PETROLEUM

 CALGARY, Alberta, Jan. 5 /PRNewswire/ -- Beta Well Service Inc. (AMEX: BWS) announced it has signed a letter of intent to acquire from London-based Quest Petroleum Group all of its operating interests, including two joint venture oil production projects. The joint ventures are located in the Komi region of the Russian Federation and in the Republic of Kazakhstan.
 The letter of intent, which has been approved by the boards of directors of both companies, calls for the stockholders of Quest to receive two million shares of Beta common stock plus a 50 percent interest in the future profits of the Kazakhstan project up to a maximum of $10 million. A definitive agreement could be completed within 60 days.
 Each joint venture is for 25 years and provides a 50/50 sharing with the local production association in the profits from the increase in production over existing levels.
 The Komi operation since its commencement in the spring of 1993 has been successful in increasing production, selling oil on the world market and banking hard currency. The Kazakhstan project, which has not yet commenced operations, has over 800 wells and extensive proven reserves.
 Beta owns rigs that perform workovers to restore production at dormant wells or to increase production at underperforming wells. In less than two years since expanding its operations outside Canada, the company has worked over some 700 wells in Siberia and increased their production substantially despite difficult terrain and environmental conditions.
 The Quest Group is owned by several international corporations, the controlling stockholder being the Mannai Corporation of Qatar. This Arabian Gulf-based conglomerate's activities include engineering, telecommunications and automotive interests as well as participation in oil sector businesses.
 Mr. William J. Gordica, President of Beta Well Service, said, "This acquisition would be consistent with management's long term strategy to capitalize on our unique workover capabilities by converting from a per diem contractor to a joint venture owner. Upon completion of the transaction, Beta will have the opportunity to create a stream of revenue for over 20 years. We are already making plans to mobilize additional equipment and personnel to optimize production at these joint ventures. This is an important step in building Beta into an integrated international oil and gas company."
 Mr. Ralph Harrisson of the Mannai Corporation in London said, "We are merging Quest with Beta Well Service because of Beta's excellent record of performance in Siberia. We believe that by combining Quest's already successful operations in Komi with the technical expertise and experience of Beta Well, the shareholders of Quest will maximize the opportunities in the two joint ventures."
 -0- 1/5/94
 /CONTACT: William J. Gordica of Beta Well Service, 403-290-0660; or Stan Froelich of Cameron Associates, 212-644-9560/
 (BWS) CO: Beta Well Service Inc.; Quest Petroleum Group ST: Alberta IN: OIL SU: TNM


JG-MP -- NY010 -- 9154 01/05/94 07:45 EST
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Publication:PR Newswire
Date:Jan 5, 1994
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