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BETA WELL SERVICE ISSUES STATEMENT IN RESPONSE TO NEWS ACCOUNTS REPORTED JAN. 14, 1994

 CALGARY, Alberta, Jan. 17 /PRNewswire/ -- Beta Well Service, Inc. (AMEX: BWS) issued the following statement in response to news accounts reported Jan. 14, 1994:
 Beta Well Service has established itself as a world class workover contractor by supplying experienced personnel and specially designed equipment to repair over 850 wells in the Western Siberian oil producing region. As a result of this strong performance the Company has entered into a previously announced agreement to purchase two joint ventures in the Commonwealth of Independent States. One joint venture is located in the Komi region of Russia, the other in the Republic of Kazakhstan. This will expand the Company's business to provide not only short-term contract workover services as it does now, but to enable the Company to participate in the long-term optimization of production. This will ensure that the Company stays involved in the joint ventures for a 25 year period.
 The Komi operation currently produces 4,400 barrels of incremental oil per day to the joint venture from the first 23 wells that have been reworked. The Kazakhstan joint venture will be an initial workover activity in the Zhetybay field, which has over 800 wells and extensive proven reserves. After establishing the infrastructure for the joint venture, Beta will be in a strong position to supply additional equipment and services to a number of major oil producers becoming active in the area. Consideration for the acquisitions was approximately US$30 million comprised of 2 million shares of Beta common stock and a US$10 million earn out.
 Beta anticipates redeploying the four rigs from the Chernagor contract, which was terminated by Calgary Overseas on Jan. 11, 1994, two to its pending joint venture in Komi and two to its pending joint venture in the Republic of Kazakhstan.
 Of the six rigs involved in the Kogalym contract, Beta has continued to operate the four rigs which have been sold to an affiliate of Calgary Overseas. The contract is expected to be completed within 90 days. Calgary Overseas has an option to purchase the two remaining rigs. If the option is not exercised, those rigs will be redeployed elsewhere.
 In addition to the joint ventures discussed above there are three transactions that the Company believes provide substantial growth opportunities:
 1. Beta has entered into a one year contract with Valen's Consulting to provide a minimum of one rig with the accompanying labor, management and training to be deployed in a new area in Western Siberia.
 2. The acquisition of Matt's Manufacturing Ltd. was completed effective Oct. 1, 1993. Matt's performs custom design and manufacturing of equipment for the oil field, mining and forestry industries. It supplies equipment in Algeria, Australia, Hungary, Russia, U.S. and Venezuela as well as Canada. The rapidly expanding company had C$3.1 million in revenues for the fiscal year ended Sept. 30, 1993 and currently has a backlog of C$7 million that will be completed in fiscal 1994. In the opinion of Beta management, the principal impediment to the growth of Matt's has been access to sufficient capital. That obstacle has been overcome and Matt's is now facing broader opportunities, including current discussions to enter into a manufacturing joint venture in Eastern Europe, which will enhance Beta's ability to compete by placing manufacturing close to anticipated international growth markets.
 3. On Nov. 25, 1993, Beta completed an agreement to exchange its preferred shares in Calgary Overseas Development Co. Ltd. plus US$180,000 for the common shares of BWS Service Limited. As a result of buying out its 25% minority partner, Beta is better positioned to negotiate contracts through BWS Service, through which the company has conducted its international operations.
 In addition to these opportunities, Beta is negotiating the purchase of two additional joint ventures and three oil well service contracts. Beta believes it will have a minimum of 8-10 rigs, other than those operated for others, working in its international division by the June 1994 quarter.
 The Company previously announced that operating income for the first quarter ended Dec. 31, 1993 is expected to be higher than the comparable period for the prior year. Management today confirmed that statement.
 Due to the discontinuance of the Chernagor contract and while the rigs and crews are being redeployed, operating results for the second quarter ending March 31, 1994 are expected to be slightly lower than the prior year period, if no additional work is received during the quarter.
 With the commencement of its joint ventures, a significant upturn in performance is expected in the second half of the year ending Sept. 30, 1994.
 Beta had net working capital of C$16.3 million at Sept. 30, 1993. While there have been some delays in payment on the Calgary Overseas Development contracts, as of Jan. 10, 1994 Beta has collected C$8.3 million of the C$14 million international accounts receivable outstanding at Sept. 30, 1993 and has received assurances that the balance will be collected in the near future.
 In order to finance its expansion, the Company has arranged a US$10 million standby line of credit from CVD Financial Corporation. Beta anticipates that this line will be used for equipment financing as well as for start-up capital for its joint ventures. It is expected that other project financings, especially for long-term overseas contracts and joint ventures, will be obtained from major international banking institutions that have already expressed interest.
 -0- 1/17/94
 /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. ST: Alberta IN: OIL SU: JVN ERP

JG-MP -- NY010 -- 1261 01/17/94 10:41 EST
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Date:Jan 17, 1994
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