Black Diamond Income Fund
TSX : BDI.UN

Black Diamond Income Fund

January 28, 2008 06:00 ET

Black Diamond Income Fund Provides Additional Operational Update

CALGARY, ALBERTA--(Marketwire - Jan. 28, 2008) - Black Diamond Income Fund ("Black Diamond" or the "Fund") (TSX:BDI.UN) is pleased to provide the following operational update.

During the fourth quarter of 2007, Black Diamond negotiated a number of additional long term rental contracts with its oil and gas and oil sands related customers. These new contracts have committed 176 of the Fund's workforce accommodation units, approximately 100 of which are new manufactured product with the balance being existing fleet assets. The majority of these contracts are for 36 month guaranteed rental terms with fixed monthly payments.

As of December 31, 2007, the Fund was generating approximately 78% of its revenue from oils sands or oil sands related projects, 12% of its revenue from space rental assets with the remaining 10% being sourced from conventional oil and gas activity in Alberta and British Columbia. Of the 10% generated from conventional oil and gas activity, more than half is generated from equipment on 36 month fixed monthly payment contracts with large oil and gas companies. For the whole of 2007, the Fund generated 67% of its revenue from oil sands or oil sands related projects, 13% of its revenue from space rentals not related to oil sands and the remaining 20% of its revenue from conventional oil and gas activities.

The Fund is an unincorporated open ended investment trust governed by the laws of the Province of Alberta. The principal undertaking of the Fund, through its indirect wholly-owned subsidiary, Black Diamond Limited Partnership, is to rent modular structures for use as workforce accommodation and temporary workspace, and to provide complementary services including transportation, installation, dismantling, repair and maintenance of modular structures, as well as related services through three operating divisions consisting of Black Diamond Camps, BOXX Modular and Black Diamond Site Services.

Reader Advisory

Certain information in this news release contains forward-looking statements including management's assessment of future plans and operations of Black Diamond. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could effect Black Diamond's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondincomefund.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, 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

  • Black Diamond Income Fund, by its Manager,
    Black Diamond Group Inc.
    Trevor Haynes, President and Chief Executive Officer
    (403) 206-4737
    (403) 264-9281 (FAX)
    or
    Black Diamond Group Inc.
    Michael Burnyeat
    Vice President, Finance and Chief Financial Officer
    (403) 206-4740
    (403) 264-9281 (FAX)
    Website: www.blackdiamondincomefund.com