CALGARY, Alta. — Mullen Group Income Fund yesterday announced it set a new record for consolidated revenue for the first quarter of 2007.

The company recorded $365.7 million in revenue as well as a new record for operating income of $86.7 million. Revenue was up 48.7% over the same period last year, but the company said the increase can be attributed to the revenue generated by key acquisitions made last year. Those acquisitions added about $132.2 million to Mullens revenue. Operating income soared 45% over the same period last year.

A decrease in natural gas drilling activity hurt Mullen during the first quarter. But overall, the company is pleased with its performance.

“We are very pleased with the overall financial performance of our business units in the first quarter. The demand for our drilling-related oilfield services in Eestern Canada was clearly softer in 2007 compared to the record levels of 2006. Not only were our customers’ drilling programs somewhat curtailed, but spring break-up occurred a few weeks earlier this year as compared to last year. In spite of these conditions the fund, as a result of the acquisitions we completed during 2006, was able to achieve record results,” said Stephen H. Lockwood, president and co-chief executive officer.

As far as the trucking/logistics segment of Mullens business is concerned, there was a decline resulting from slower growth in Western Canada and the weakness of the North American economy, said Lockwood.

The company said it plans to continue acquiring attractive companies, even in the face of a slowdown in drilling activity. The fund has about $115 million available to pursue its growth strategy, and Lockwood said With these additional funds in hand we will be well positioned to move quickly if attractive acquisition opportunities arise.