Phoenix Associates Land Syndicate Enters Into Binding Letter of Intent to Acquire ProGas, Inc. Completed Acquisition will Add $190 Million in Revenues for FY 2005
Tuesday November 15, 7:30 am ET
COVINGTON, La.--(BUSINESS WIRE)--Nov. 15, 2005--Phoenix Associates Land Syndicate (Pink Sheets: PBLS - News) announced today that it has signed a binding letter of intent to purchase Covington, Louisiana based ProGas, Inc. The deal, which is expected to close on or before November 30, 2005, will add significant production and distribution capacity to Phoenix's energy business, as well as a mature and growing business portfolio complimentary to the company's existing Oil & Gas operations.
According to ProGas audited financial statements, the acquisition when closed, is expected to add in excess of $190,000,000 in annual revenues to Phoenix. While specific information on the acquisition will be made available when the transaction closes, the Company did release that transaction consideration will consist of a combination of cash, restricted and preferred shares.
ProGas, which also has offices in Houston, Texas, is a full service energy company that provides marketing responsive solutions to Energy producers and consumers, with services including energy supply management, natural gas and crude oil marketing, physical energy transportation (trucks, barges, pipelines), physical and financial risk management, administrative and regulatory consulting and a rapidly growing facilities financing division.
Paul Alonzo, CEO of Phoenix stated, "This acquisition embodies a strategic cornerstone in our ongoing efforts to attain critical mass in our energy operations and establish a sizable domestic footprint. The acquisition will not only add substantial free cash flows but also significant margin enhancement by acting as internal marketing agent for our existing Oil & Gas production operations." He continued, "I am particularly excited by the rapid growth of ProGas' facilities finance division. This business will give Phoenix a unique opportunity to help qualified producers grow their production and reserve base by taking a risk-mitigated ownership position in the physical asset of these businesses. The financing structure frees producers to focus their capital resources on core oil and gas producing activities while providing Phoenix with partial ownership, pre-agreed lease payouts and revenues over a designated time period." |
