Phoenix Technology Income Fund
TSX : PHX.UN

Phoenix Technology Income Fund

October 14, 2009 17:41 ET

Phoenix Technology Income Fund Announces New Monthly Distribution Rate and Growth Plan

CALGARY, ALBERTA--(Marketwire - Oct. 14, 2009) - Phoenix Technology Income Fund ("Phoenix" or the "Fund") (TSX:PHX.UN) announces that the monthly cash distribution for October has been approved by the board of directors of the Fund in the amount of $0.04 per trust unit, a reduction from the previous monthly rate of $0.085 per trust unit, which will be paid on November 13, 2009 to unitholders of record on October 30, 2009. The board of directors has determined that it is in the best interests of the Fund to reduce its monthly distribution at this time and reallocate these funds towards optimizing the Fund's growth strategy while maintaining a healthy balance sheet.

The Fund's strategy is to emerge from the current recession and industry downturn as a stronger organization. In order to achieve this goal, the Fund has continued to focus on international expansion and the development of innovative directional drilling technology. Phoenix, during 2009, successfully expanded into the South American market by establishing a fully-independent division in Peru, as well as continued its operations in Albania; both of which have created further diversity in the Fund's operations. It is expected that further growth in both Albania and South America will continue, as will expansion into other new prospective markets. Phoenix is also pleased to announce that significant progress has been made on multiple R&D projects in 2009, and innovation will be an ongoing objective for the Fund. With the Fund's current growth strategies and with future anticipated opportunities, Phoenix's capital requirements are increasing.

In addition Phoenix announces that in response to Bill C-52, the Fund has begun to explore the possibility of converting its trust structure to that of a corporation. Structures being considered include, without limitation, a dividend paying corporate model.

About Phoenix Technology Income Fund

Phoenix Technology Income Fund provides horizontal and directional drilling services to oil and natural gas exploration and development companies in Canada, the United States, Peru and Albania. Phoenix's trust units are listed on the Toronto Stock Exchange under the symbol "PHX.UN".

Reader Advisory:

Certain statements and information contained in this press release, including statements and information that contain the words "could", "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. In particular, forward-looking information and statements set forth in this press release include: the Fund's strategy to emerge from the current recession and industry downturn as a stronger organization; the Fund's current focus on international expansion and the development of innovative directional drilling technology; expected growth in Albania and South America and expansion into other new prospective markets; the potential conversion of the Fund from its trust structure to that of a corporation and the timing and structure of such a conversion. These statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements and information. The Fund believes the expectations reflected in such forward-looking statements and information are reasonable, but no assurance can be given that these expectations will prove to be correct. Such forward-looking statements and information included in this press release should not be unduly relied upon. These forward-looking statements and information speak only as of the date of this document.

In addition to other factors and assumptions which may be identified in other continuous disclosure documents of the Fund, assumptions have been made in respect of such forward-looking statements and information regarding, among other things: anticipated financial performance, business prospects, impact of competition, strategies, the general stability of the economic and political environment in which the Fund operates, exchange and interest rates, tax laws, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services, the receipt of all necessary corporate and regulatory approvals and the ability to obtain financing on acceptable terms, which are subject to change based on commodity prices, market conditions, and future oil and natural gas prices, and potential timing delays. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Readers are cautioned that the foregoing lists of risks and assumptions are not exhaustive. Additional information on the factors that could affect the Fund's operations and financial results are included in reports on file with the Canadian Securities Regulatory Authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Fund's website. The forward-looking statements and information contained in this press release are expressly qualified by this cautionary statement. The Fund does not undertake any obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Phoenix Technology Income Fund
    John Hooks
    President and Chief Executive Officer
    (403) 543-4466
    or
    Phoenix Technology Income Fund
    Cameron Ritchie
    Chief Financial Officer
    (403) 543-4466
    www.phoenixcan.com