Phoenix Oilfield Hauling Inc.
TSX VENTURE : PHN

Phoenix Oilfield Hauling Inc.

October 17, 2007 09:00 ET

Phoenix Oilfield Hauling Inc. Announces Acquisition of the Operating Assets of Finnie Hauling & Storage Ltd.

NISKU, ALBERTA--(Marketwire - Oct. 17, 2007) -

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Phoenix Oilfield Hauling Inc. (TSX VENTURE:PHN) is pleased to announce that it has, pursuant to a transaction agreement dated October 16, 2007, acquired all of the operating assets of Finnie Hauling & Storage Ltd. ("Finnie"). Finnie is a privately owned company based in Calgary, Alberta that specializes in the transportation of products, materials, supplies, and equipment required for the exploration, development and production of petroleum resources using specialized trucks and trailers designed for oilfield service. The acquisition is an arms-length transaction.

The purchase price of the operating assets is approximately $13.2 million and was paid by way of approximately $10.7 million in cash and the issuance of 3,535,514 common shares of Phoenix at a deemed price of $0.72. The purchase price includes the acquisition of equipment, including certain deposits, with a fair market value of approximately $13.0 million. The common shares issued are subject to a hold period in accordance with applicable securities legislation, which hold period expires on February 17, 2008. No finder's fee was paid in connection with the acquisition.

The acquisition of Finnie increases Phoenix's fleet by 19 trucks to approximately 96 trucks and further expands the Company's base of operations in Calgary. In connection with the acquisition, Larry Finnie will remain with the company and continue to be responsible for the division's day-to-day operation.

According to Leo Provencher, President of Phoenix, "Finnie is a first class operation, well regarded by its customers, and represents a significant opportunity to expand our presence in Calgary. The Finnie business offers synergies following the acquisition of Ability Hauling in October 2006 and increases our heavy-haul capability. This is a business with over 45 years of successful operating history which is a recognized trade name within our industry".

The operations of Phoenix and Finnie will result in the combined business operating a fleet of approximately 96 trucks working out of field locations in Devon, Nisku, Calgary, Grande Prairie and Slave Lake.

"Reader Advisory

This news release contains certain forward-looking statements, which include assumptions with respect to (i) future operations; (ii) future economic conditions; (iii) future capital expenditures; and (iv) cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition from other companies, ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Corporation will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws."

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the contents of this news release.

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