Phoenix Technology Income Fund
TSX : PHX.UN

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

Wellco Energy Services Trust

October 21, 2005 19:45 ET

Phoenix Technology Income Fund Completes Acquisition to Acquire Directional Drilling Assets From Wellco Energy Services Trust

CALGARY, ALBERTA--(CCNMatthews - Oct. 21, 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 successfully completed the previously announced acquisition of the directional drilling assets of Wellco Energy Services Partnership for aggregate cash consideration of $5,000,000. Of this cash consideration certain holdbacks are payable to Wellco, in whole or in part, in the future based on the finalization of due diligence and the occurrence of certain future events.

Certain employees of Wellco have also entered into employment agreements with Phoenix in conjunction with the closing of the transaction, and Phoenix is pleased to welcome the employees of Wellco to its team, and anticipates that the transaction will result in significant growth for Phoenix.

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. Wellco would also like to offer its thanks to all former Wellco directional employees for their exceptional efforts over the years and wish them the best of luck in their future endeavours.

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
    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
    or
    Wellco Energy Services Trust
    Corey Zahn
    Chief Financial Officer
    (403) 232-6334
    (403) 232-6334 (FAX)
    or
    Wellco Energy Services Trust
    2300, 500 - 4th Avenue SW
    Calgary, AB T2P 2V6