Phoenix Technology Income Fund

Phoenix Technology Income Fund

January 31, 2007 08:30 ET

Phoenix Technology Income Fund Provides Guidance on Year End Results and Cash Distributions

CALGARY, ALBERTA--(CCNMatthews - Jan. 31, 2007) - Phoenix Technology Income Fund ("Phoenix") (TSX:PHX.UN) has received many queries respecting its year-end financial results and the Fund's ability to make ongoing cash distributions, given that a number of other issuers have announced distribution reductions in the past several months. The Fund is pleased to announce that Phoenix has experienced robust activity levels in both Canada and the United States since the release of its financial information for the nine-month period ended September 30, 2006. Currently, the Fund generates approximately forty percent of its consolidated revenue from the United States, providing the Fund with important geographical diversification.

Given Phoenix's strong financial results over the course of the past year, its strong balance sheet with low levels of debt, and anticipated activity levels in the near term, Phoenix will easily be able to maintain its monthly cash distribution in the amount of $0.065 per trust unit for the foreseeable future.

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 and the United States. Phoenix's trust units are listed on the Toronto Stock Exchange under the symbol "PHX.UN".

Forward-Looking Statements

Certain information set forth in this press release, including a discussion of future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements include statements relating to Phoenix's plans, strategies, objectives, expectations, intentions, resources and business activities, which are not guarantees as to future results since there are inherent difficulties in predicting these future results. The use of any of the words: "anticipate", "expect", "project", "may", "will", "should", "believe", "estimate", "forecast", "intends" and similar expressions identify forward-looking statements. Such statements are subject to known and unknown risks and uncertainties, many of which are beyond the Fund's control. These would include the impact of the general state of the economy, oil and natural gas energy price fluctuations, industry conditions, competition from other organizations, weather conditions and the seasonal nature of business, access to third-party suppliers and contractors, changes in government regulation, access to competent employees including senior management, and currency and interest rate fluctuations. In particular, if there is a material downturn in activity levels in the oil and gas industry, there may also be a sudden impact to the Fund's distributable cash flow. The Fund's assumptions used in these forward-looking statements are believed to be reasonable at the time of preparation; however, no assurance can be given that these assumptions will prove to be correct and consequently, the Fund's actual results could differ materially from those implied by or contained in any forward-looking statement. As a result, readers should be cautioned about placing any undue reliance on any forward-looking statement included in this report.

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
    Phoenix Technology Income Fund
    Cameron Ritchie
    Chief Financial Officer
    (403) 543-4466