Phoenix Technology Income Fund
TSX : PHX.UN

Phoenix Technology Income Fund
Wellco Energy Services Trust
TSX : WLL.UN

Wellco Energy Services Trust

September 22, 2005 17:49 ET

Phoenix Technology Income Fund to Acquire Directional Drilling Assets from Wellco Energy Services Trust

CALGARY, ALBERTA--(CCNMatthews - Sept. 22, 2005) - Phoenix Technology Income Fund ("Phoenix") (TSX:PHX.UN) and Wellco Energy Services Trust ("Wellco") (TSX:WLL.UN) are pleased to announce that they have entered into an agreement pursuant to which Phoenix will acquire the directional drilling assets of Wellco Energy Services Partnership for aggregate cash consideration of $5,000,000, as may be adjusted in certain events.

Phoenix currently deploys 56 MWD operating systems throughout Canada and the United States and is on track to meet its prior forecast of deploying 67 before the year end. The Wellco acquisition will add an immediate 6 additional MWD operating systems and provide incremental capacity during the upcoming busy winter drilling season and bring the new total at year end to 73 MWD operating systems. Also included in the purchase are 10 auto survey systems allowing entry into this growing market and 31 downhole performance motors and ancillary equipment to compliment the current Phoenix fleet. The parties contemplate that they will be in a position to close the transaction effective October 15, 2005.
With this divestiture, Wellco further focuses its efforts on product lines that are consistent with the Company's growth strategy of providing an integrated suite of products and services.

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".

About Wellco Energy Services Trust

Wellco Energy Services Trust is a growth oriented income trust that provides a diversified suite of oilfield services to the Canadian energy industry. Wellco's trust units are listed on the Toronto Stock Exchange under the symbol "WLL.UN".

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
    (403) 543-6025 (FAX)
    or
    Phoenix Technology Income Fund
    Cameron Ritchie
    Chief Financial Officer
    (403) 543-4466
    (403) 543-6025 (FAX)
    or
    Phoenix Technology Income Fund
    435, 630 - 6th Avenue SW
    Calgary, AB T2P 3A8
    Website: www.phoenixcan.com
    or
    Wellco Energy Services Trust
    Kenneth M. Bagan
    President and Chief Executive Officer
    (403) 232-6334
    (403) 232-6338 (FAX)
    or
    Wellco Energy Services Trust
    Corey Zahn
    Chief Financial Officer
    (403) 232-6334
    (403) 232-6338 (FAX)
    or
    Wellco Energy Services Trust
    2300, 500 - 4th Avenue SW
    Calgary, AB T2P 2V6