Xtreme Coil Drilling Corp.

Xtreme Coil Drilling Corp.

July 22, 2009 10:31 ET

Xtreme Coil Expands Mexico Rig Fleet

CALGARY, ALBERTA--(Marketwire - July 22, 2009) - Xtreme Coil Drilling Corp. (TSX:XDC) ("Xtreme Coil", the "Company") announces a further expansion of existing operations in Mexico following execution of new long-term drilling contracts related to the letter of intent previously announced.

Mexico Operations Expand to Ten Rigs

Xtreme Coil is currently preparing to deploy two more Coil Over Top Drive® ("COTD™") drilling rigs under new long-term day rate contracts between a global integrated oilfield services company and Xtreme Coil's wholly-owned subsidiary, Xtreme Coil Drilling Mexico, S.A. de C.V. The rigs are contracted to work at a utilization rate of 100 percent for an initial term of 18 months, with an extension option. Once the two XTC 200DTPlus drilling rigs are deployed, Xtreme Coil will have 10 rigs operating in the Chicontepec oil development project near Poza Rica. We anticipate operations for these two rigs will commence during 2009 3Q.

The XTC 200DTPlus is Xtreme Coil's newest rig design, equipped with a 200,000 lb. alternating current ("AC") draw works and a 200,000 lb. AC injector, is capable of drilling to 10,000 feet with 3-1/2 inch coiled tubing and over 8,000 feet with conventional jointed drill pipe.

2009 Second Quarter Operating Days

Xtreme Coil achieved approximately 880 operating days for 2009 2Q. At the close of the 2009 first quarter, Xtreme Coil had nine rigs operating under long-term contract and two additional XTC 400 rigs being prepared for deployment to Mexico for operations which subsequently commenced in 2009 2Q. With the two additional contracts for the XTC 200DTPlus drilling rigs, Xtreme Coil will have 13 rigs or 81 percent of the Company's fleet under contract operating in Mexico and the United States. Concurrently, our sales and technical team continues to pursue opportunities in a number of new international regions. We believe both current and new customers can benefit from contracting Xtreme Coil's COTD™ rigs for conventional and re-entry drilling projects both in and beyond North America.

Corporate Profile

Xtreme Coil develops and applies leading edge patented and patent-pending technology and designs to build, transport, and operate new COTD™ drilling rigs. Currently contracted in the United States and Mexico and marketed to other international regions, Xtreme Coil's innovative, dual-purpose and efficient rigs drill with larger coil to reach hydrocarbons in deeper horizons. Xtreme Coil's proprietary technology also features modular transportation systems, larger coil injectors and new methods for achieving deeper, faster and safer drilling. Xtreme Coil's common shares trade on the TSX under the symbol "XDC".

Reader Advisory

This news release contains forwarding looking statements. More particularly, this news release contains statements concerning the anticipated deployment, operation, utilization and performance of the Company's fleet of drilling rigs. Although Xtreme Coil believes the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Xtreme Coil can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The forward-looking statements contained in this news release are made as of the date hereof and Xtreme Coil 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.

Contact Information

  • Xtreme Coil Drilling Corp.
    Tom Wood
    Executive Chairman
    (403) 262-9500
    (403) 262-9522 (FAX)
    Xtreme Coil Drilling Corp.
    Rod Uchytil
    President and Chief Executive Officer
    (403) 262-9500
    (403) 262-9522 (FAX)
    Xtreme Coil Drilling Corp.
    1402, 500 Fourth Avenue SW
    Calgary, Alberta T2P 2V6
    Email: ir@xtremecoil.com
    Website: www.xtremecoildrilling.com