Barnwell Industries, Inc. Reports Results for the Quarter and Nine Months Ended June 30, 2001.

Business Editors

HONOLULU--(BUSINESS WIRE)--Aug. 13, 2001

Barnwell Industries, Inc., (ASE:BRN) today reported net earnings of $740,000 ($0.55 per share - diluted) and $3,660,000 ($2.68 per share - diluted) for the three and nine months ended June 30, 2001, respectively, as compared

Mr. Morton H. Kinzler, Chairman and Chief Executive Officer of Barnwell, commented, "Revenues and net earnings for the three and nine months ended June 30, 2001 were generated only by our oil and gas and contract drilling segments, while last year's nine month revenues and net earnings also included revenues and net earnings due to the receipt of option proceeds for the sale of rights to develop residential parcels within the Four Seasons Resort Hualalai at Historic Ka'upulehu. Comparing our nine months results to last year's nine months excluding the impact of revenues and net earnings from the exercise of the development rights option, revenues increased $5,530,000 and net earnings increased $1,900,000 for the nine months ended June 30, 2001, as compared to the nine months ended June 30, 2000.

"These increases in revenues and net earnings were due to increases in natural gas and natural gas liquids prices of 118% and 52%, respectively, as compared to last year's nine months. Additionally, natural gas and natural gas liquids prices increased 50% and 25% respectively, for the quarter ended June 30, 2001, as compared to last year's third quarter ended June 30. In the quarter ended June 30, 2001 the government of Alberta passed legislation reducing the Provincial corporate tax rate 2% from 15.5% to 13.5%. Accordingly, the Company recorded a $300,000 deferred tax benefit.

"The Company invested $3,423,000 in oil and gas exploration and development during the nine months ended June 30, 2001, participating in the drilling of 25 gross wells (19 successful), or 4.5 net wells (2.0 successful), and the recompletion of 17 gross wells, or 1.7 net wells. The Company's cash flow from operations for the nine months ended June 30, 2001 has increased from the nine months ended June 30, 2000 by 52% to $9,253,000 and the Company had cash and cash equivalents of $5,595,000 at June 30, 2001.