Sikanni Reports 2007 Second Quarter Results

SIKANNI SERVICES LTD. (TSX VENTURE:SKI) ("Sikanni" or the "Corporation") is
pleased to announce its operating results for the quarter ended June 30, 2007
("Q2 2007").


Consolidated revenues increased to $ 4.4 million for Q2 2007 from $1.0 million
for Q2 2006 and the Company finished with $0.5 million of positive Ebitda during
a quarter that was impacted by reduced capital spending and prolonged wet
weather. The increase in the quarterly and year-to-date results is attributable
to the impact of strategic acquisitions and the deployment of additional
equipment and resources. The financial results for the three months ended June
30, 2007 include Sikanni and Twilight Oilfield Hauling for the entire quarter
and the results of Northwell Oilfield Hauling for 12 days only. The full impact
of the Northwell acquisition will be seen in Q3 2006.


"Our Q2 results were well below our expectations but were consistent with our
industry peers. No one is immune to industry trends, but we are pleased to have
finished the quarter with positive Ebitda.", reported Rod MacDonald, President
and CEO of Sikanni, "With the recent addition of Northwell and our expansion
into the US markets, we are positioning Sikanni to withstand short term industry
cycles and provide long term value to our shareholders."




                       -----------------------------------------------------
Consolidated                  Three Months Ended           Six Months Ended 
 Highlights                              June 30                    June 30
----------------------------------------------------------------------------
(Unaudited)                   2007          2006         2007          2006
                       -----------------------------------------------------
Revenues               $ 4,382,527  $    965,115 $ 11,914,304  $  1,885,556
Operating costs          3,094,385       780,362    8,205,166     1,622,594
----------------------------------------------------------------------------
Operating income         1,288,142       184,753    3,709,138       262,962
General and
 administrative
 expenses                  811,144       132,629    1,451,832       222,744
----------------------------------------------------------------------------
EBITDA (1)                 476,998        52,124    2,257,306        40,218
----------------------------------------------------------------------------
Stock based
 compensation                4,265             -      313,293             -
Interest (net of
 revenue on
 short term deposits)       (9,027)       53,355      120,453        82,173
Depreciation and
 amortization            1,296,419       158,868    2,112,298       271,787
Loss on sale of
 property and
 equipment                  35,377             -       35,377        18,108
----------------------------------------------------------------------------
Net income (loss)         (562,589)     (100,099)    (340,540)     (242,850)
----------------------------------------------------------------------------
Funds from operations (2)  486,025        (1,231)   2,136,853       (41,955)
----------------------------------------------------------------------------
Purchase of property
 and equipment         $ 4,879,586  $  1,234,935 $  5,922,436  $  2,763,621
----------------------------------------------------------------------------

(1) EBITDA is calculated from the statement of loss as revenue less 
    operating costs and general and administrative expenses and is used in
    assessing the Company's ability to generate cash from operations. EBITDA
    is a non-GAAP measure and does not have any standardized meaning 
    prescribed by GAAP and may not be comparable to similar measures 
    provided by other companies.

(2) Funds from operations is defined as cash from operating activities 
    before changes in non-cash working capital. It is a measure that 
    provides investors additional information regarding the Company's 
    liquidity and its ability to generate funds to finance its operations 
    Funds from operations does not have any standardized meaning prescribed 
    by GAAP and may not be comparable to other companies.



Highlights for the three months ended June 30, 2007

- Generated revenues of $4.4 million and positive Ebitda of $0.5 million during
a period of challenging industry activity levels.


- Acquired Northwell Oilfield Hauling Ltd. on June 18, 2007 for cash
consideration of $13.9 million and 4.4 million shares of Sikanni, adding a
profitable operation with an enviable track record and strategic locations in
Swan Hills and Fox Creek in the process. The entire management and operating
teams were retained and will continue to operate this business going forward.


Northwell is primarily focused on production related oilfield transportation,
which typically generates more stable revenue steams that are less impacted by
drilling levels. The results of operations include the Northwell activity for
the 12 day period commencing on June 19, 2007.


- Closed the sale of an additional 4,570,683 common shares for gross proceeds of
$2,742,410 in connection with the over-allotment option in the prospectus.


- Expanded its operations into the US market with a long term contract to supply
40 wheeled frac tanks to a US based energy services company.


- Commenced the EUB approval process for the first of its waste management
facilities. Although construction will not commence until final approval has
been rendered, the Company is hopeful it will begin operating during Q1 2008.


Outlook

Second quarter activity levels in 2007 were below levels seen for several years
in Western Canada as the industry experienced prolonged wet weather conditions,
reduced drilling activity and weaknesses in the underlying commodity prices. The
Company expects to see an improvement its financial performance during Q3 2007,
as activity levels increase from the Q2 2007 levels. However, management
anticipates that there will continue to be volatility in the sector and that
industry activity levels will remain below the comparative for Q3 2006. While
management acknowledges that commodity pricing is subject to a wide range of
external factors that can materially impact industry activity levels, they
remain cautiously optimistic that activity levels will begin to increase during
Q4 2007 and continue on into 2008.


The Petroleum Services Association of Canada has forecasted a 25% decline in
wells drilled in 2007 from 2006. Management expects that this reduction will be
manifested in competitive pricing pressures for the remaining service work. This
pricing trend was experienced in Q2 and has continued into Q3.


At the end Q2 2007, the Company closed the Northwell acquisition, which was both
accretive and strategic to its goal of expanding its oilfield services.
Management expects that Northwell will positively impact the Q3 2007 results and
that the combined operations will benefit from a broader service line, more
geographic diversity and the ability to cross sell services to a larger customer
base.


The Company entered into an equipment rental contract with a US based customer
during Q2 2007 and will continue to seek out market opportunities for strategic
advantage and strong organic growth.


Management is adapting to difficult industry conditions by remaining extremely
focused on minimizing overhead costs, scrutinizing all capital expenditures,
concentrating on its core businesses and being receptive to strategic
acquisition opportunities that are accretive to its shareholders. The management
and directors of Sikanni are collectively focused on positioning the Company for
significant growth when the industry returns to historical activity levels.




SIKANNI SERVICES LTD.
Consolidated Balance Sheets
As at June 30, 2007 and December 31, 2006
----------------------------------------------------------------------------
                                                         2007          2006
----------------------------------------------------------------------------
                                                   (Unaudited)     (Audited)
ASSETS

Current assets
 Cash                                            $          -  $     88,083
 Accounts receivable                                3,809,851     1,275,975
 Future income taxes                                  771,050       727,249
 Inventory                                            110,443        55,943
 Prepaids and deposits                                515,756       182,616
-------------------------------------------------------------- -------------
                                                    5,207,100     2,329,866

Property and equipment                             37,158,004    11,419,543
Intangibles                                        16,332,421             -
Goodwill                                           18,766,791             -
-------------------------------------------------------------- -------------
                                                $  77,464,316  $ 13,749,409
-------------------------------------------------------------- -------------
-------------------------------------------------------------- -------------

LIABILITIES

Current liabilities
 Bank indebtedness                              $     539,261  $          -
 Accounts payable and accrued liabilities           2,844,986     1,197,526
 Short-term advances                                  318,891     1,065,828
 Current portion of long-term debt                    871,731       689,532
 Non-current portion of callable long-term debt     2,638,024     2,977,580
 Current portion of obligations under capital
  lease                                               521,748       503,058
-------------------------------------------------------------- -------------
                                                    7,734,641     6,433,524

Long-term debt                                        474,658       478,213
Obligations under capital lease                     1,240,531     1,492,934
Future income taxes                                 7,043,800       235,249
-------------------------------------------------------------- -------------

                                                   16,493,630     8,639,920
-------------------------------------------------------------- -------------

SHAREHOLDERS' EQUITY

Share capital                                      57,206,711     6,454,112
Warrants                                            4,803,395             -
Contributed surplus                                   645,743             -
Deficit                                            (1,685,163)   (1,344,623)
-------------------------------------------------------------- -------------

                                                   60,970,686     5,109,489
-------------------------------------------------------------- -------------

                                                $  77,464,316  $ 13,749,409
-------------------------------------------------------------- -------------
-------------------------------------------------------------- -------------


SIKANNI SERVICES LTD.
Consolidated Statements of Loss and Deficit
----------------------------------------------------------------------------
(Unaudited)          Three months ended June 30    Six months ended June 30
                             2007          2006          2007          2006
------------------------------------------------ ---------------------------

Revenues             $  4,382,527  $    965,115  $ 11,914,304  $  1,885,556

Expenses
 Operating              1,848,126       741,655     3,949,591     1,529,624
 Subcontractors         1,246,259        38,707     4,255,575        92,970
------------------------------------------------ ---------------------------
Operating Income        1,288,142       184,753     3,709,138       262,962

 General and
  administration          811,144       132,629     1,451,832       222,744
 Stock-based
  compensation              4,265             -       313,293             -
 Depreciation             835,268       158,868     1,457,719       271,787
 Amortization of
  intangible
  assets                  461,151             -       654,579             -
 Interest on long
  term debt                57,785        20,800       141,349        22,710
 Interest on
  obligations
  under capital
  lease                    59,162        32,555       107,759        59,463
 Loss on sale of
  property and
  equipment                35,377             -        35,377        18,108
 Interest revenue
  on short term 
  deposits               (125,974)            -      (128,655)            -
------------------------------------------------ ---------------------------
                        2,138,178       344,852     4,033,253       594,812
------------------------------------------------ ---------------------------
Loss before income
 taxes                   (850,036)     (160,099)     (324,115)     (331,850)
------------------------------------------------ ---------------------------
Income tax (recovery)
 expense
  Current                       -             -             -             -
  Future                 (287,447)      (60,000)       16,425       (89,000)
------------------------------------------------ ---------------------------
                         (287,447)      (60,000)       16,425       (89,000)
------------------------------------------------ ---------------------------
Net loss                 (562,589)     (100,099)     (340,540)     (242,850)

Deficit, beginning
 of period             (1,122,574)     (624,531)   (1,344,623)     (451,790)
Excess of
 redemption value
 over par value of
 redeemed common
 shares                         -             -             -       (29,990)
Excess of fair
 value over book 
 value of purchase
 of Sikanni Waste
 Management Ltd.                -      (300,000)            -      (300,000)
------------------------------------------------ ---------------------------

Deficit, end of
 period              $ (1,685,163) $ (1,024,630) $ (1,685,163) $ (1,024,630)
------------------------------------------------ ---------------------------
------------------------------------------------ ---------------------------


SIKANNI SERVICES LTD.
Consolidated Statements of Cash Flows
------------------------------------------------ ---------------------------
(unaudited)         Three months ended June 30     Six months ended June 30
                            2007          2006           2007          2006
------------------------------------------------ ---------------------------

CASH PROVIDED BY
 (USED IN):

Operating

 Net loss          $    (562,589) $   (100,099)  $   (340,540) $   (242,850)
 Items not
  affecting cash:
   Loss on sale of
    property and 
    equipment             35,377             -         35,377        18,108
   Stock based
    compensation           4,265             -        313,293             -
   Future income 
    tax (recovery)      (287,447)      (60,000)        16,425       (89,000)
   Depreciation and
    amortization       1,296,419       158,868      2,112,298       271,787
------------------------------------------------ ---------------------------
Funds from (used
 in) operations          486,025        (1,231)     2,136,853       (41,955)
Net change in
 non-cash
 working capital       1,065,919       300,573       (120,511)       76,673
------------------------------------------------ ---------------------------

                       1,551,944       299,342      2,016,342        34,718
------------------------------------------------ ---------------------------

Investing

Business
 acquisitions        (13,894,246)            -    (34,400,576)            -
Purchase of
 property and
 equipment            (4,879,586)   (1,234,935)    (5,922,436)   (2,763,621)
Proceeds on sale
 of property and
 equipment                63,750             -         63,750        28,475
------------------------------------------------ ---------------------------

                     (18,710,082)   (1,234,935)   (40,259,262)   (2,735,146)
------------------------------------------------ ---------------------------

Financing

 Issuance of
  long-term debt         122,451             -        122,451     1,099,038
 Repayment of
  long-term
  debt                  (194,603)      (59,458)      (287,952)      (70,744)
 Repayment of
  obligations
  under capital
  lease                 (112,477)            -       (233,713)     (135,464)
 Issuance of
  obligations
  under capital
  lease                        -       (76,380)             -             -
 Issuance of
  short-term
  advances               581,085             -      1,733,123       (30,000)
 Repayment of
  short-term
  advances            (2,737,802)            -     (3,162,380)            -
 Shareholder loans             -      (100,000)             -       250,000
 Issuance of common
  shares - net of 
  issue costs          2,563,130     2,000,000     39,444,047     2,000,000
 Redemption of
  common shares                -             -              -       (30,000)
------------------------------------------------ ---------------------------

                         221,784     1,764,162     37,615,576     3,082,830
------------------------------------------------ ---------------------------

(Decrease) increase
 in cash             (16,936,354)      828,569       (627,344)      382,402
Cash, beginning of
 period               16,397,093         3,985         88,083       450,152
------------------------------------------------ ---------------------------

(Bank indebtedness)
 cash, end of 
 period            $    (539,261) $    832,554   $   (539,261) $    832,554
------------------------------------------------ ---------------------------
------------------------------------------------ ---------------------------

Supplemental cash
 flow information:
  Interest received      128,450             -        128,450             -
  Interest paid          106,125        56,656        227,247        84,739



Forward-Looking Statements

Certain information included herein is forward-looking. Forward-looking
statements include, without limitation, statements regarding the future
financial position, business strategy, capital expenditures, financial results,
taxes and plans and objectives of or involving the Company. Many of these
statements can be identified by looking for words such as "believe", "expects",
"expected", "will", "intends", "projects", "anticipates", "estimates",
"continues", or similar words and include but are not limited to, statements
regarding the accretive effects of the acquisition and the anticipated results
and expected benefits of the acquisition upon closing thereof. Sikanni believes
the expectations reflected in such forward-looking statements are reasonable but
no assurance can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
Forward-looking statements are not guarantees of future performance and involve
a number of risks and uncertainties some of which are described in Sikanni's
continuous disclosure documents. Such forward-looking statements necessarily
involve known and unknown risks and uncertainties and other factors, which may
cause Sikanni's actual performance and financial results in future periods to
differ materially from any projections of future performance or results
expressed or implied by such forward-looking statements. Such factors include,
but are not limited to: general economic, market and business conditions;
industry capacity; competitive action by other companies; refining and marketing
margins; the ability of suppliers to meet commitments; actions by governmental
authorities including increases in taxes; changes in environmental and other
regulations; and other factors, many of which are beyond the control of Sikanni.
Any forward-looking statements are made as of the date hereof and Sikanni does
not undertake any obligation, except as required under applicable law, to
publicly update or revise such statements to reflect new information, subsequent
or otherwise.