Mullen to reinvest capital in trucking ops

CALGARY — Mullen Group Income Fund declared its 2007 capital budget for expenditures to be $35 million.

The capital required for acquisitions, land purchases, and other special projects is not included in this amount and will be allocated and
authorized as the need arises, the oil services giant stated in a press release.

“This year’s capital budget for our business units of $35.0 million reflects the cyclical nature of the oil and natural gas industry and the high level of capital expenditures incurred during 2006. We are expecting a slowdown in drilling activity in 2007 and as such it is our opinion that our business units directly associated with drilling will need very little capital to sustain the expected activity levels,” stated Stephen H. Lockwood, President and Co-CEO.

Infrastructure development, oil sands expansion, production services and general trucking services were described as attractive opportunities by Lockwood, “and (we) will be investing the majority of our capital in these business units.”

“Obviously, we will be monitoring the factors that affect the general economy and drilling activity levels and will make prudent adjustments to the capital budget during the year as required.”