Paul Alonzo, CEO and President of Phoenix, said, "We are pleased to be adding Sam Henley and David Bolton, the principals of the companies we have acquired, to our highly qualified executive leadership team, now that these acquisitions are closed. Mr. Henley will oversee all operation of the three companies and David Bolton will oversee the daily operations of Ideal Energy, the directional drilling company."
Mr. Alonzo added, "The acquisition of these three companies is confirmation that we are continuing to implement our plans to grow 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. We believe that these new business units will be quickly integrated into the Phoenix family of companies and contribute revenues of about $11 million in 2006 with operating profits of approximately $2 million."
The Company has indicated that the total purchased price of the three companies was set at $4.125 million, structured as follows: $1.25 million in cash, 2.5 million shares of restricted common stock of the Company at $0.05 per share, and 275,000 shares of PBLS preferred stock at a par value of $10.00 per share, paying a 6% annual dividend, to be paid quarterly. The holders of the preferred have the right to put any portion of the preferred back to the Company at any time after 60 months for cash. The stockholders may also elect to hold the preferred stock forever if they wish and thus keep receiving quarterly dividends as long as they hold the stock. In addition, both Mr. Bolton and Mr. Henley have entered into five year employment agreements with the Company.
These three acquired companies are located in Kilgore, Texas. Sam's Oil Country is in the business of inspecting bottom hole assemblies and other parts of a well that are critical to successful and safe drilling operation; CM Ideal Energy Services is a leasing company that leases down hole drilling motors and equipment; and Ideal Energy Directional drilling is a rapidly expanding drilling company with an experienced staff of directional drillers and well planners.
About Phoenix Associates Land Syndicate (PBLS)
Phoenix Associates Land Syndicate (PBLS) is a public holding company, with over 5,700 stockholders, that has purchased motivated companies in order to enhance its assets and income basis. Since 1978, PBLS has developed assets and/or interests in sand & gravel, soil products, land development, oil and natural gas, commodity brokering, plumbing, trucking, contract hauling, construction, swimming pool construction and construction related industries.
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