Phoenix Technology Income Fund
TSX : PHX.UN

Phoenix Technology Income Fund

October 05, 2005 08:42 ET

Phoenix Technology Income Fund Announces Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 5, 2005) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Phoenix Technology Income Fund (the "Fund") (TSX:PHX.UN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the "Underwriters") led by Peters & Co. Limited and including Wellington West Capital Markets Inc., in connection with a "bought deal" trust unit financing by way of short form prospectus of an aggregate of 1,200,000 trust units at a price of $9.00 per unit for aggregate gross proceeds of $10,800,000. Proceeds of the offering will be used to finance the previously announced acquisition of the directional drilling assets of Wellco Energy Services Partnership, and the Fund's future capital expenditure program, that includes the addition of a minimum of seven Phoenix-manufactured Current Loop Telemetry ("CLT") systems and the expansion of Phoenix's fleet of down hole mud motors in Canada and the United States.

The Fund will be proceeding to file a preliminary short form prospectus with the securities authorities in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario on October 7, 2005. The offering is subject to regulatory approval, including approval of the Toronto Stock Exchange and is expected to close on or about October 25, 2005.

The Phoenix Technology Income Fund

Head quartered in Calgary, Alberta, the Fund provides horizontal and directional drilling services to oil and natural gas exploration and development companies in Canada and the United States. Phoenix Technology Income Fund is listed on the Toronto Stock Exchange under the symbol "PHX.UN".

Forward-looking statements

Some matters discussed in this report may be considered forward-looking statements. Such statements include declarations regarding management's intent, belief, or current expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. Actual results could differ materially from those indicated by such forward-looking statements. Such risks and uncertainties include: the possible unavailability of financing, risks related to the uncertainty inherent in the oil and gas horizontal and directional services industry, the impact of energy price fluctuations, the seasonal nature of business, the dependence on third party suppliers and contractors, changes in government regulation, the impact of competition, the successful commercialization of certain technologies, the dependence upon competent employees including senior management, and fluctuations in currency exchange rates and interest rates.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Contact Information

  • Phoenix Technology Services Inc.
    John Hooks
    President and CEO
    (403) 543-4466
    (403) 543-6025 (FAX)
    or
    Phoenix Technology Services Inc.
    Cameron Ritchie
    Senior Vice President Finance and CFO
    (403) 543-4466
    (403) 543-6025 (FAX)
    or
    Phoenix Technology Services Inc.
    Suite 630, 435 4th Avenue SW
    Calgary, Alberta T2P 3A8
    Website: www.phoenixcan.com