CALGARY, Sept. 20 /PRNewswire-FirstCall/ -- (TSX - MTL.UN) The Mullen Group Income Fund ("Mullen" and/or the "Fund") announced today the signing of a letter of intent to acquire Pro North Oilfield Services Ltd. and Pro North Well Management Ltd. ("Pro North"), private companies based in Fort Nelson, British Columbia, in an all cash transaction. Pro North is a leader in the Fort Nelson, B.C. area in the provision of oilfield related fluid hauling services. It owns and operates a fleet of approximately 20 tank truck/trailer combinations and employs approximately 25 people.
"We are pleased to add Pro North's fluid transportation capabilities to our growing fluid business. It is a strong and well run company that we expect will work closely with our Formula Powell group. Pro North has been in business for almost 17 years and has built an exceptional reputation for providing outstanding service to their customers in the Fort Nelson area," stated Stephen H. Lockwood, President and Co-CEO.
"In the years to come we are optimistic that Pro North will be able to grow its business and expand on their prior year's revenue of approximately $10.0 million and to continue to produce respectable operating margins in a range consistent with similar business units in the Mullen organization. This acquisition reaffirms our strategic plan of expanding our fluid transportation business and enhancing our service offerings to our key customers," said Stephen Lockwood.
Mullen is also very pleased to announce that Marshall Ellis, the key operational principal of Pro North has agreed to remain with Pro North to oversee its day to day operations. Pro North will be added to Mullen's oilfield services segment and will be operated as an independent business unit in the Formula Powell group.
The transaction is expected to close by the middle of October, 2007, subject to completion of due diligence and other conditions normal for a transaction of this nature.
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 open-ended income fund that owns a network of independently operated businesses. Today the Mullen Group is recognized as the largest provider of specialized transportation and related services to the oil and natural gas industry in western Canada and as one of the leading suppliers of trucking and logistics services in Canada - two sectors of the economy in which the Fund has strong business relationships and industry leadership. Administration of the Fund is delegated to Mullen Group Inc. which, in addition to managing the Fund, provides management and financial expertise, technology and systems support to its independent businesses.
Mullen is a publicly traded income trust listed on the Toronto Stock Exchange under the symbol "MTL.UN". Additional information is available on our website at http://www.mullen-group.com/.
