Phoenix Associates to Acquire Three Texas-Based Oilfield Companies
9:30 AM ET Mar 29, 2006
COVINGTON, LA, Mar 29, 2006 (MARKET WIRE via COMTEX) -- Phoenix Associates Land Syndicate (PBLS : phoenix assocs ld synd com, PBLS0.02, +0.00, +2.2%) today announced that it has entered into a binding letter of agreement to acquire three Texas-based oilfield companies, Sam's Oil Country Inspection Services, Inc., CM Ideal Energy, Inc. and Ideal Energy Directional Drilling Services, Inc. The closing of these transactions is tentatively set between April 14th and May 1st , 2006 and is subject to the standard conditions to closing on such transactions, including satisfactory conclusion to the Company's due diligence review.
Paul Alonzo, President and CEO of Phoenix, said, "We are pleased to be able to continue the growth of our company through strategic acquisitions. These three companies are providers of much needed services to the oil exploration field and will contribute to the strength of our Phoenix Oil and Gas Division. Based on information provided to Phoenix by the sellers, we anticipate that these acquisitions will contribute revenues of approximately $11 million and operating profits of approximately $1.9 million for 2006. More complete information about these companies and the terms of the transactions will be released after the closings."
Sam's Oil Country, located in Kilgore, Texas, inspects wellheads and other parts of the well that are critical to successful and safe drilling operations. CM Ideal Energy Services is a rental company that rents down hole drilling motors and equipment. The third company, Ideal Energy Directional Drilling, is a rapidly expanding drilling company with an experienced staff of directional drillers and planning support personnel. The combined capabilities of these companies will provide the Phoenix Oil and Gas Division with new resources and experienced management to support the Company's continued growth in the oil and gas field. |
