ALDERSYDE, AB, Jan. 13 /PRNewswire-FirstCall/ -- (TSX - MTL.UN) The Board of Directors of Mullen Group Inc. announced today that it has approved management's recommended capital budget for Mullen Group Income Fund ("Mullen" or the "Fund") of $40.0 million for 2006. Of this amount approximately $25.0 million is allocated for sustainable capital expenditures with the balance of $15.0 million to be used for special projects and to generate internal growth in the Fund's various operating divisions. "Our capital budget of $40.0 million for 2006 includes sustainable capital for all our business units, including our newest business unit Pe Ben Oilfield Services Ltd., and is the largest in our history. These funds will allow us to sustain our current operations and those of Pe Ben and to capitalize on the opportunities for internal growth that have been identified by our business units. In addition, with the recent closing of our $102 million equity financing we have the funds available to capitalize on acquisition opportunities that arise in 2006," stated Mr. Stephen H. Lockwood, President and Co-CEO.
The Board of Directors of Mullen Group Inc. also announced today that the Fund's monthly distribution policy for 2006 will be $0.15 per trust unit ($1.80 per trust unit per year) an increase of $0.015 from the $0.135 per trust unit ($1.62 per trust unit per year) used in 2005. "We have only been operating in the income trust environment for six months and are very pleased to be in a position to increase the distribution to our unitholders after such a short period," said Stephen H. Lockwood, President and Co-CEO.
It was also announced that a monthly distribution of $0.15 per trust unit has been declared for the month of January, 2006. The distribution will be paid on February 15, 2006 to unitholders of record as of January 31, 2006. A distribution of $0.15 per unit will also be paid to holders of Mullen Co. Limited Partnership B Units using the same record date and payment date.
This press release may contain forward-looking statements that are subject to risk factors associated with the oil and gas business and the overall economy. The Fund believes that the expectations reflected in this press release are reasonable, but results may be affected by a variety of variables. The Fund relies on litigation protection for "forward-looking" statements.
Mullen is an income trust governed by the laws of Alberta. The Fund was created in conjunction with Mullen Transportation Inc.'s conversion of its assets and operations into an income trust. The operating businesses owned by the Fund focus on two sectors of the economy - the oil and gas industry and the transportation and distribution of freight - areas where these businesses have developed strong business relationships and industry leadership. Mullen is a publicly traded income trust listed on the Toronto Stock Exchange under the symbol "MTL.UN". Additional information on Mullen is available on our website at http://www.mullen-group.com/.
