SOURCE: Phoenix Associates Land Syndicate

July 06, 2006 15:22 ET

Phoenix Associates Reports Fiscal 2005 Unaudited Results

MADISONVILLE, LA -- (MARKET WIRE) -- July 6, 2006 -- Phoenix Associates Land Syndicate (PINKSHEETS: PBLS) ( herein presents selected financial and operational data, for the benefit of its shareholders, as it progresses with its independent audit of 2004 & 2005.

Revenues for the full-year 2005, if full year participation of 2005 acquisitions was assumed, increased to $165,971,862, up strongly from $465,452 in 2004.

Operational and Other Recent Highlights:

--  Phoenix announced on June 20th that it completed the acquisition of
    TCB Properties, U.S. Inc., a Florida corporation.
--  Phoenix announced on June 20th that it filed a corporate action with
    the Nevada Secretary of State to increase its authorized shares of common
    stock from 997 million shares to 1.75 billion, and to increase its
    authorized shares of preferred stock from 3 million to 250 million.
--  Phoenix's Board of Directors on June 19th issued a clarification of
    its stock repurchase program and announced it would repurchase up to one
    hundred million shares at a price of $0.03 per share.
--  Phoenix announced on April 26th that it has completed a stock
    repurchase program announced last November 9th with the buy back of more
    than 110 million shares of its common stock and announced it would continue
    the stock repurchase program for an unlimited number of shares of Phoenix
    Common Stock.
--  Phoenix announced on May 23rd the recent approval by the US Army Corps
    of Engineers of aggregate products from the Company's Murphy Sand & Gravel
    reserves for use in the rebuilding of the Greater New Orleans area and the
    Gulf region.
--  Phoenix announced on May 2nd it had acquired three Texas-based
    oilfield companies; Sam's Oil Country Inspection Services, Inc., CM Ideal
    Energy Services, Inc. and CM Ideal Energy Directional Drilling Services,
    Inc.; businesses that are expected to contribute revenues of approximately
    $11 million in 2006 with operating profits of approximately $2 million.
--  Phoenix announced on December 15th the acquisition of ProGas, Inc. of
    Covington, LA, a natural gas and oil marketing company.
Paul Alonzo, President and CEO of Phoenix, stated, "I am very pleased with the strong growth of our Company over the last year. We at Phoenix believe that our business model has made it possible to grow rapidly in 2005 & 2006, and to continue on our path to becoming a much stronger company in the chosen business sectors being pursued. Our philosophy of growth, to buy, buy, buy, and then buy some more, is the philosophy that made it possible for us to grow from under a million in revenues in 2004 to more than $165 million in revenues in 2005. This is terrific growth by any measure."

Mr. Alonzo added, "Our balance sheet continues to strengthen as a result of the strong operational performances through our assembled companies. Our net cash balances exceeded $6.6 million at the end of 2005, showing a healthy trend."

Financial Highlights and Comments:

The Company's financial data is prepared in accordance with Generally Accepted Accounting Principals (GAAP). The audit of 2004 & 2005 data is in progress and will, upon completion, fulfill SEC and SOX requirements for publicly traded companies, even though Phoenix is not currently required to conduct this level of audit.

The following items will be helpful in understanding the financial and operational status of the company:

--  Net cash balances, total cash and cash equivalents, on December 31,
    2005 totaled $6,649,963 compared to $ Nil on December 31, 2004.
--  Murphy Sand & Gravel is located on 820 acres in Pearl River, LA.
--  Dr. Gordon P. Boutwell, Jr., PhD, PE, Senior Consultant for Soil
    Testing Engineers, Inc. (STE, Inc.) has provided documentation valuing
    mineral deposits of Murphy Sand and Gravel at $189,600,000 minimum and in
    excess of $300,000,000 maximum.
--  The land lease for Murphy Sand & Gravel is carried at acquisition
    cost.  Should a revaluation of this asset occur a new valuation could be
    considerably higher than what is currently indicated.
--  The total exploration land leases consist of 2,075 acres in Natrona
    County, WY; 880 acres in Carbon County, WY; 7,868 acres in White Pine
    County, NV; 329 acres in Fentress and Pickett Counties, TN; 283 acres in
    Adair County, KY; and 122 acres in Clinton County, KY.
--  Land leases for exploration are reflected on the books of the Company
    at acquisition cost.  It is felt that this is the most conservative method
    of valuing these assets.  Current market valuation could be considerably
    higher than acquisition costs.
--  The Rome Oil/Mid South division of Phoenix currently has several
    completed wells pumping a total of approximately 12 - 15 barrels of oil per
    day on Company leases in the state of Kentucky.  The Company has chosen not
    to book these reserves pending further geological and reservoir engineering
--  Phoenix purchased its corporate office building in late 2005.  It is
    carried on the balance sheet at cost, plus modifications and improvements.
    It is our feeling that the market value of this property is significantly
    greater than the purchase cost.  An appraisal will be requested and
    valuation will be adjusted accordingly.  There is no mortgage attached to
    this property.
--  Phoenix currently has no institutional related long term debt.
Though Phoenix has chosen not to put a value on its oil reserves, the following points are worthy of note:
--  The Company's leases in Natrona County, WY, entitled S.E. Burke Ranch,
    are in close proximity to Salt Creek Field (660.5 mmbo) and the Teapot Dome
    Naval Reserve (26.4 mmbo).  Other successful drilling has occurred in close
    proximity to these leases.  John J. Wanner C.P.E. and James O. Breene, Jr.,
    Geologist, through communication and research, estimate reserves to be in
    excess of 8,100,000 barrels minimum and 13,100,000 barrels maximum.  At $60
    per barrel, valuation is $486,000,000 minimum and $786,000,000 maximum.
--  The Company's leases in Carbon County, WY, entitled Shirley Anticline
    Prospect, are located on the extreme southwest flank of the Shirley Basin
    in southeast central WY.  Considerable drilling activity has taken place in
    the surrounding areas and substantial finds have occurred for both oil and
    natural gas.  James O. Breene, Geologist, estimates reserves in the Shirley
    Anticline Prospect lease area to be approximately 5,000,000 barrels minimum
    and 10,000,000 barrels maximum.  At $60 per barrel, valuation is
    $300,000,000 minimum and $600,000,000 maximum.
--  The Company's leases in White Pine County, NV, entitled Cabin Spring
    Prospect, are located in Long Valley, in the northwest part of the county
    in east central NV.  In addition to surface and subsurface geological and
    geophysical information, a 5 mile proprietary seismic line and 25 sq. mi.
    of proprietary gravity data were used to define the prospect.  Successful
    exploration in the region has resulted in the discovery of fields in the
    range of 5 to 20 million barrels, primary recovery.  Don E. French,
    Geologist and John Vreeland, Geophysicist, estimate total reserves at the
    Cabin Spring Prospect lease area to be estimated conservatively at
    20,000,000 barrels minimum and 50,000,000 barrels maximum.  At $60 per
    barrel, valuation is $1,200,000,000 minimum and $3,000,000,000 maximum.
About Phoenix Associates Land Syndicate (PBLS)

Phoenix Associates Land Syndicate (PBLS) is a public holding company, with hundreds of stockholders, that has purchased motivated companies in order to enhance its assets and income basis. Since 1978, PBLS has developed assets and/or interests in sand & gravel, soil products, land development, oil and natural gas, commodity brokering, trucking, contract hauling, construction, swimming pool construction and construction related industries. For more information, visit

Forward-Looking Statements

This press release contains statements, which may constitute "forward-looking" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are "forward-looking" statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

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