Phoenix Technology Income Fund

Phoenix Technology Income Fund

June 16, 2008 17:34 ET

Phoenix Technology Income Fund Announces Update on Inclination-At-Bit Technology

CALGARY, ALBERTA--(Marketwire - June 16, 2008) - Phoenix Technology Income Fund ("Phoenix" or the "Fund") (TSX:PHX.UN) is pleased to announce that as a result of several successful field trials conducted in western Canada in the second quarter of 2008, the Fund's Inclination-at-Bit technology for its Current Loop Telemetry Electromagnetic MWD (CLT EM-MWD) system is now commercial. Phoenix is currently undertaking to manufacture an additional 10 Inclination-at-Bit modules, or 5 complete systems, in a 6 1/2" tool size. These tools are expected to be field ready by early September and will contain focused gamma and gamma logging capabilities.

Field trials for a smaller 4 3/4" module, including gamma capabilities, are also scheduled to commence in September 2008. In addition to operating with Phoenix's CLT EM-MWD system, it is expected that in the fourth quarter of this year, the Inclination-at-Bit module will be capable of operating with Phoenix's mud pulse MWD systems.

Traditionally, MWD sensors have been situated 10-20 meters behind the drill bit, delaying the delivery of at-bit borehole information to the operator. Located in a short sub directly behind the drill bit, Phoenix's Inclination-at-Bit module contains inclination sensors that transmit accurate data from the bit's location to the MWD tool, where it is processed and sent to the surface. Phoenix's tool will allow an operator to more accurately stay within a horizontal reservoir creating a more productive well. In addition, drilling will be faster with fewer corrections which will result in a straighter, more economical well.

Currently only a select few multi-national companies have commercial Inclination-at-Bit systems and Phoenix is focused on offering this technology to its clients within the very active horizontal and directional drilling market throughout North America.

About Phoenix Technology Income Fund

Phoenix 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".

The information in this news release contains certain forward looking statements relating to the anticipated closing of the offering which involves substantial and unknown risks and uncertainties, certain of which are beyond Phoenix's control, including: the impact of general economic conditions, industry conditions, changes in laws and regulations including changes in tax laws and changes in how they are interpreted and enforced, fluctuations in commodity prices and foreign exchange and interest rates, stock market volatility and obtaining required approvals of regulatory authorities. No assurances can be given that any of the events anticipated by the forward looking statements will transpire or occur or, if any of them do what benefits that Phoenix will derive from them. The closing of the offering could be delayed if Phoenix is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not completed at all if these approvals are not obtained or some other condition to the closing of the offering is not satisfied. Accordingly, there is a risk that the proposed offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering by Phoenix might change if the Board of Directors of Phoenix Technology Services Inc. determines that it would be in the best interests of Phoenix to deploy the proceeds for some other purpose.

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