Xtreme Drilling and Coil Services
TSX : XDC

Xtreme Drilling and Coil Services

February 10, 2012 08:00 ET

2011 Q4 and Year-End Conference Call and Operations Update - Xtreme Begins Deployment of XSR Coil Service Units

CALGARY, ALBERTA--(Marketwire - Feb. 10, 2012) - Xtreme Drilling and Coil Services (TSX:XDC) announces its 2011 year-end conference call as well as an operational update on the drilling and coil service operating segments.

2011 Year-End Conference Call Scheduled for Wednesday March 7, 2012

The Company has scheduled a conference call to discuss Xtreme's 2011 Q4 and full year financial and operating results with investors, analysts, media and shareholders on Wednesday, March 7, 2012, beginning promptly at 9:00 am MT (10:00 am CT, 11:00 am ET).

Tom Wood, Chairman and Chief Executive Officer, will host the conference call with participation from Richard Havinga, President and Chief Operating Officer and Matt Porter, Chief Financial Officer. Xtreme plans to issue 2011 Q4 and full year financial and operating results on Tuesday, March 6th after market close.

Conference operator dial‐in numbers

Dial-in numbers and access details will be announced prior to the conference call.

Coil Services Update

XSR Newbuild Program

As of this press release the Company has one new XSR coil service unit operating in the field. Due to delays related to pumping equipment the Company is working with its suppliers and equipment rental providers to deploy the four remaining units as quickly as possible. Xtreme anticipates deploying the four additional XSR units during the first quarter and early second quarter of 2012.

Xtreme also has two XSR coil service units conducting re-entry horizontal drilling operations in Saudi Arabia and one XSR coil service rig based in North Dakota to provide deep horizontal well post fracture cleanouts.

XSR Operations

In February of 2012 the Company commenced operations with its first XSR coil service unit in the United States in the Eagle Ford Shale play in South Texas. President and Chief Operating Officer, Richard Havinga said, "Initial operating performance has been as anticipated. The AC powered injector combined with Xtreme's proprietary auto drilling program ("X-mill™") has resulted in a significant reduction in motor stalls and resultantly faster plug mill out times as compared to traditional coil units. In addition to this, the ability to deploy larger coiled tubing has resulted in exceptional improvements in sand removal and well clean out. It's clear the coiled tubing technology that Xtreme developed and optimized in Saudi Arabian operations translates very well to the North American resource plays. Xtreme is excited about the opportunities that this new technology can bring to the rapidly expanding horizontal completion market. "

The XSR units are an iteration of Xtreme's re-entry rig design which has performed successfully in Middle East operations since 2010. The new XSR units are a mast-style coiled tubing unit that utilize a 200,000 lb. AC electric injector with the capability of running 2-5/8 inch coiled tubing to depths in excess of 20,000 feet. In complement to this, the unit includes a stand-alone reel trailer capable of holding 23,500 feet of 2-5/8 inch coiled tubing. Pumping capabilities include dual quintaplex fluid pumps.

Drilling Services Update

XDR 500 Newbuild Program

As part of the previously announced 2012 capital build program Xtreme deployed the first of six planned XDR 500 rigs to the field in January 2012. This is the fifth XDR 500 rig in operation and brings the total available XDR drilling rigs to sixteen with fifteen in operation.

The Company is on schedule to deploy five newbuild XDR 500 rigs on previously announced long term contracts. It is anticipated that one rig will be delivered near the end of the first quarter, two rigs during the second quarter and one rig in both the third and fourth quarters of 2012. Richard Havinga commented, "The XDR500 rigs continue to be top performers in the industry with exceptional move times and industry leading footage drilled in their class year after year. The demand from our customers has remained robust as evidenced by the long term contracts on these rigs".

Canadian Operations

In December of 2011 Xtreme mobilized three XDR 200 drilling rigs to Canada to prepare for winter operations. In January 2012 these three rigs commenced operations in Alberta. The Company anticipates one additional XDR 200 drilling rig moving to Canada in the first half of 2012.

United States Operations

Currently, Xtreme has twelve XDR rigs operating in Colorado, North Dakota, Texas and Utah. Each of these rigs work for an operator targeting either liquid rich gas or oil. As such, there is very limited exposure to the recent weak North American dry gas market.

Estimated 2011 Fourth Quarter Operating Days

Xtreme estimates approximately 1,246 operating days for 2011 fourth quarter resulting in 75 percent utilization for the Company's rig fleet. As of December 31, 2011, twelve XDR drilling rigs were working, including eight in the Rocky Mountain region, three in North Dakota, and one in Texas; and two XSR coil service rigs were working in Saudi Arabia.

About Xtreme

Xtreme Coil Drilling Corp. ("XDC" on the Toronto Stock Exchange) and its subsidiaries operate under the brand name Xtreme Drilling and Coil Services. Xtreme owns and operates a fleet of proprietary, high specification drilling rigs and coiled tubing well servicing units featuring the Company's patented designs. Xtreme offers oil and natural gas operators outstanding performance and efficiency through this leading-edge technology. For more information about the Company, please visit www.xtremecoil.com.

Reader Advisory

This news release contains forward-looking statements within the meaning of applicable securities laws. More particularly, this news release contains statements that may relate to new operations, contracting, marketing, construction, modifications or upgrades, deployment, operation and utilization of assets in the Company's current and future fleet and expected future operations as well as estimates of operating days and rig utilization. Although Xtreme believes the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Xtreme can give no assurance they will prove to be correct. There are many factors that could cause forward-looking statements not to be correct, including risks and uncertainties inherent in Xtreme's business. The forward-looking statements contained in this news release are made as of the date hereof and Xtreme undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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