Canyon Services Group Inc. announces the issuance of Canadian Patent



    TSX-FRC

    CALGARY, Jan. 29 /CNW/ - Canyon Technical Services Ltd., a wholly owned
subsidiary of Canyon Services Group Inc. ("Canyon"), is pleased to announce
that it has been granted Canadian Patent No. 2536957, entitled "Method of
Treating a Formation Using Deformable Proppants".
    The patent encompasses the introduction of a non-metallic deformable
proppant, utilizing both gases and liquids as carrier fluids, to stimulate
subsurface reservoirs. Included within the patent, Canyon has developed a
process whereby it employs proprietary equipment to introduce a deformable
proppant into a 100% pure nitrogen gas stream (the "Grand Canyon Process").
    Canyon has stimulated in excess of 1,600 production horizons in over
350 wells using the Grand Canyon Process. Reservoirs successfully treated
within the Western Canadian Sedimentary Basin include tight and conventional
sands, shales and coals.
    Project data confirms that several months after stimulation, production
rates are approximately 100% greater than adjacent wells which were not
treated with Canyon's patented process. In addition, wells stimulated with the
Grand Canyon Process were placed on production earlier than when conventional
stimulation methods are utilized, as the need to remove conventional
stimulation fluids from the well is eliminated.
    The Grand Canyon Process has significant environmental benefits. The use
and subsequent disposal of water and chemicals is eliminated.

    We seek safe harbour.





For further information:

For further information: Brad Fedora, President, Canyon Services Group
Inc., No. 1600, 510-5th St. S.W., Calgary, Alberta, T2P 3S2, Phone: (403)
355-2300, Fax: (403) 355-2211

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Canyon Services Group Inc.

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