CORRECTION FROM SOURCE: Xtreme Drilling and Coil Services

CALGARY, ALBERTA--(Marketwired - May 5, 2016) - This release corrects and replaces the release sent for Xtreme Drilling and Coil Services issued on May 04, 2016 at 7:40 PM ET. The heading for the bulleted list at the top of the release should have read "Q1 2016 Highlights" instead of "Q1 2015 Highlights".

Xtreme Drilling and Coil Services Corp. ("Xtreme", the "Company") (TSX:XDC) announce first quarter 2016 financial and operating results. It is anticipated that filing will take place on SEDAR of interim Consolidated Financial Statements as well as Management's Discussion and Analysis for the three months ended March 31, 2016 by May 6^th, 2016.

Q1 2016 Highlights

(amounts in thousands of Canadian dollars, unless otherwise noted)

On April 27, 2016, Xtreme and Schlumberger signed an agreement for the sale of Xtreme's XSR Coiled Tubing Services Segment for $205,000. The agreement contemplates the sale of substantially all of the assets of the XSR segment, including the operating units and related equipment, inventory and consumables, and related patents and intellectual property, as well as customer lists and the transfer of rights under contracts held by the XSR business segment. Assets excluded from the sale include real property and land belonging to the XSR segment. Xtreme's Coiled Tubing Services Segment includes well intervention services in the United States and coiled tubing drilling in Saudi Arabia. Xtreme will be retaining its XDR Drilling Segment and its fleet of XDR rigs.
The operating units and related equipment, inventory and consumables, and related patents and intellectual property have been presented as "Assets of disposal group held for sale" on the Company's consolidated statement of financial position for the period ended March 31, 2016, in anticipation of the sale. There are no liabilities contemplated to be assumed as part of the transaction. The earnings of the Coil Services Segment for the first quarter of 2016 have been presented on the Company's consolidated statements of (loss) income as discontinued operations.

The information below is presented for both continued and discontinued operations on a combined basis for purposes of comparison with prior periods. Related amounts in the financial statements attached may differ.

Adjusted EBITDA was $9.2 million in the first quarter of 2016, down from $9.9 million in the previous quarter. Adjusted EBITDA margin as a percent of revenue increased in the first quarter of 2016 to 26.1% from 21.8% in the fourth quarter of 2015.
Revenue of $35.4 million in the first quarter of 2016, a decrease of 22 percent from $45.4 million in the previous quarter. XDR revenue decreased to $16.3 million in the first quarter of 2016, from $23.4 million in the fourth quarter of 2015. XSR revenue decreased to $19.1 in the first quarter of 2016, from $22.1 million in the fourth quarter of 2015. The decrease in revenue for the period was primarily a function of decreased operating days and utilization in the US Drilling Segment. Total operating days across the Company decreased to 894 for first quarter of 2016 as compared to 1,324 in the fourth quarter of 2015.
For the first quarter of 2016, overall revenue per operating day increased by 15% to $39,600 from the prior quarter, driven primarily by mobilization and standby revenue in India. XDR drilling revenue, less India revenue, per day decreased by 25% during the first quarter to $18,790 while XSR coiled tubing revenue per day decreased by 5% during the first quarter to $53,778.
For the first quarter of 2016, the Drilling Segment achieved utilization of 30% on 565 operating days. This was comprised of a 32% utilization rate for the 16 rig US XDR fleet, 0% for the three rig Canadian XDR fleet and 52% for the two rigs demobilizing from India. The two XDR rigs in India ceased operations in December 2015, but earned standby revenue while mobilizing back to the US.
For the first quarter of 2016, the Coil Services Segment achieved utilization of 65% on 329 operating days. This was comprised of a 98% utilization rate for the two XSR units in Saudi Arabia and a 46% utilization rate for the five actively marketed XSR units in the US. Not included in the total Coil Services utilization were four additional units that are currently idle and not marketed in the US.
The Drilling Segment (which includes US, Canada and India) operating profit decreased to $5.5 million in the first quarter of 2016 as compared to $7.5 million in the previous quarter. This was driven primarily by lower revenues in the US segment. Overall operating margin in the first quarter of 2015, increased to 33.9% in the Drilling Segment as compared to 31.9% in the previous quarter. The Coil Services Segment (which includes US and Saudi Arabia) operating profit increased to $8.3 million in the first quarter of 2016 as compared to $7.8 million in the previous quarter.
Total capital expenditures were $3.2 million during the first quarter of 2016, up from $2.8 million in the previous quarter. The increase is attributable primarily to maintenance capital expenditures. Currently the Company anticipates that 2016 capital expenditures will total $8 million and will be funded through operating cash flow.
During the first quarter the Company recognized $1.3 million in early termination revenue on take or pay contracts and $5.1 million in mobilization revenue on the two drilling rigs that moved back to the US from India. The Company also recorded $383k in severance expense during the quarter.
The Company finished the first quarter of 2016 with $96.2 million in total debt and $90.2 million in net debt (total debt less cash). The funded debt to EBITDA ratio was 1.9x and the net debt to EBITDA was to 1.8x. This is an increase from 1.7x and 1.5x respectively at year end 2015. On a US Dollar basis, in which the Company primarily borrows, the funded debt decreased $3 million USD during the first quarter of 2016 to an ending balance of $75.0 million USD.
Currently the Company has four of 21 XDR rigs earning revenue and seven of eleven XSR units operating. At the end of the quarter, the Company had approximately 675 days contracted under term contracts across the fleet.
As a result of the optionality and flexibility provided through the completion of the announced transaction, the management and Board of Xtreme will be reviewing all available strategic alternatives available to Xtreme which may include potential acquisitions, merger or combination, international growth program, sale of Xtreme or its assets, return of capital via a dividend, a substantial issuer bid or a combination thereof.

Selected Quarterly Financial Information

Three months ended	Mar 31, 2016		Dec 31, 2015		Sep 30, 2015		Jun 30, 2015
Revenue¹	35,395		45,438		52,238		53,668
Adjusted EBITDA ¹	9,248		9,911		15,444		15,036
Adjusted EBITDA as a percentage of Revenue¹	26	%	22	%	30	%	28	%
Adjusted EBITDA per share ¹ - basic ($)	0.11		0.11		0.18		0.18
Net loss¹	(3,734	)	(21,728	)	(48,595	)	(776	)
Net loss per share¹ - basic ($)	(0.04	)	(0.26	)	(0.59	)	(0.01	)
Capital assets¹	410,985		446,417		445,591		473,030
Total assets¹	458,987		512,226		528,120		567,050
Net debt¹	90,242		96,123		93,389		112,133
Operating days ¹	894		1,324		1,459		1,451
Utilization (percentage) - XDR	30		48		55		56
Utilization (percentage) - XSR	51		61		60		61
Utilization (percentage) - Total¹	35		51		56		57
Weighted average rigs in service ¹	32.0		31.0		30.0		30.0
Total rigs, end of quarter ¹	32		31		31		30

	Mar 31, 2015		Dec 31, 2014		Sep 30, 2014		Jun 30, 2014
Revenue¹	70,015		69,459		65,980		62,299
Adjusted EBITDA ¹	20,761		18,617		18,299		19,421
Adjusted EBITDA as a percentage of Revenue¹	30	%	27	%	28	%	31	%
Adjusted EBITDA per share ¹ - basic ($)	0.25		0.23		0.22		0.24
Net (loss) income¹	2,755		(2,258	)	853		(902	)
Net (loss) income per share¹ - basic ($)	0.03		(0.03	)	0.01		(0.01	)
Capital assets¹	488,300		452,974		443,304		413,296
Total assets¹	592,194		547,958		536,713		513,651
Net debt¹	126,869		115,520		116,768		105,358
Operating days ¹	1,823		2,053		2,173		1,779
Utilization (percentage) - XDR	73		86		92		75
Utilization (percentage) - XSR	71		74		73		68
Utilization (percentage) - Total¹	73		83		88		73
Weighted average rigs in service ¹	30.0		28.0		28.0		28.0
Total rigs, end of quarter ¹	30		29		28		28

¹Results from continuing and discontinued operations

Appointment of Director

Xtreme is pleased to announce that the Board of Directors has appointed Mr. Colin Burnett, of Aberdeen, United Kingdom, to be a member of the Board of Directors. Mr. Burnett has over 20 years of Oil and Gas experience and represents Shell Technology Ventures Fund 1 B.V. on the Board. Mr. Burnett is a Chartered Accountant and has spent the last 17 years in oil and gas private equity, spending 10 years with 3i Group plc and the last 7 years as a private investor.

The Company also announces the resignation of Shell Technology Ventures previous representative Mr. Erik J. Vollebregt from the Board of Directors. The Board would like to thank Mr. Vollebregt for his dedicated service to the Company.

Conference Call Details

Xtreme has scheduled a conference call to discuss results with investors, analysts, and stakeholders on Thursday, May 5, 2016, beginning promptly at 9:00 am MT (10:00 am CT, 11:00 pm ET).

Tom Wood, Chief Executive Officer, will host the conference call with participation from Matt Porter, President and Chief Financial Officer.

Conference operator dial‐in numbers

To participate in the conference call, please dial in as follows approximately ten minutes before the start time in your time zone.

+1 800-952-6845 (North America Toll‐Free) or 1 416-340-8527 (Alternate)

Webcast link: http://www.gowebcasting.com/7460

An audio replay of the call will be available until Thursday, May 12, 2016. To access the replay, call +1 800‐408‐3053 or +1 905‐694‐9451 and enter pass code 5000344.

Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)

		Mar 31, 2016		Dec 31, 2015
Assets
Current assets
	Cash and cash equivalents	5,948		11,223
	Accounts receivable	29,537		39,771
	Other receivables	250		351
	Prepaid expenses and other	1,209		2,461
	Inventory	2,805		8,693
		39,749		62,499

Assets of disposal group held for sale		142,717		-

Non-current assets
Property and equipment		276,521		446,417
Intangible assets		-		3,310
Total Assets		458,987		512,226

Liabilities and Equity
Current liabilities
	Accounts payable and accrued liabilities	15,887		29,729
	Income tax payable	3,817		3,918
	Current portion of long-term debt	-		107,346
		19,704		140,993
Long-term liabilities
Long-term debt		96,190		-
Total Liabilities		115,894		140,993

Shareholders' equity
Share capital		333,622		333,515
Share option reserve		15,952		15,478
Accumulated deficit		(84,565	)	(80,831	)
Foreign currency translation reserve		78,084		103,071
Total Shareholders' Equity		343,093		371,233
Total Liabilities and Shareholders' Equity		458,987		512,226

Xtreme Drilling and Coil Services Corp. Interim Consolidated Statements of (Loss) Income For the three months ended March 31, 2016 and 2015
(in thousands of Canadian dollars, except share and per share data)
(unaudited)

		2016		2015

Revenue		16,269		44,523

Expenses
	Operating expenses	10,748		28,076
	General and administrative expenses	4,603		4,035
	Depreciation of property and equipment	9,686		11,452
	Stock-based compensation	588		654
	Foreign exchange (gain) loss	(3,875	)	118
	Gain on disposal of equipment	(81	)	(44	)
	Other expense	-		2
	Interest expense	1,673		1,144
Loss before tax for the period		(7,073	)	(914	)

Tax expense
	Current	310		374
	Deferred	-		770
Total tax expense		310		1,144

Net loss from continuing operations for the period		(7,383	)	(2,058	)

Net income from discontinued operations, net of tax		3,649		4,813

Net (loss) income for the period		(3,734	)	2,755

Net loss per common share from continuing operations
	- basic	(0.09	)	(0.02	)
	- diluted	(0.09	)	(0.02	)

Net income per common share from discontinued operations
	- basic	0.04		0.06
	- diluted	0.04		0.06

Net (loss) income per common share
	- basic	(0.04	)	0.03
	- diluted	(0.04	)	0.03

Weighted average number of common shares
	- basic	83,125,541		82,498,302
	- diluted	83,125,541		82,637,937

Xtreme Drilling and Coil Services Corp. Interim Consolidated Statements of Comprehensive (Loss) Income For the three months ended March 31, 2016 and 2015
(in thousands of Canadian dollars)
(unaudited)


	2016		2015

Net (loss) income for the period	(3,734	)	2,755
Other comprehensive (loss) income
Items may be subsequently reclassified to profit or loss
Unrealized (loss) gain on translating financial statements of foreign operations	(24,987	)	31,962

Comprehensive (loss) income for the period	(28,721	)	34,717


Total comprehensive (loss) income for the period arising from:
Continuing operations	(32,671	)	29,811
Discontinued operations	3,950		4,906

Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Changes in Equity
For the three months ended March 31, 2016 and 2015
(in thousands of Canadian dollars) (unaudited)

		Share capital	Share option reserve		Accumulated deficit		Foreign currency translation reserve		Total Shareholders' Equity
Balance at Jan 1, 2015		330,964	14,803		(12,487	)	43,213		376,493
Net income for the period		-	-		2,755		-		2,755
Other comprehensive income
	Currency translation differences	-	-		-		31,962		31,962
Total comprehensive income		-	-		2,755		31,962		34,717
Employee share option scheme:
	Value of employees services	-	659		-		-		659
	Transfer from share option	22	(22	)	-		-		-
	Proceeds from shares issued	60	-		-		-		60
Total transactions with owners		82	637		-		-		719
Balance at Mar 31, 2015		331,046	15,440		(9,732	)	75,175		411,929
Balance at Jan 1, 2016		333,515	15,478		(80,831	)	103,071		371,233
Net loss for the period		-	-		(3,734	)	-		(3,734	)
Other comprehensive loss
	Currency translation differences	-	-		-		(24,987	)	(24,987	)
Total comprehensive loss		-	-		(3,734	)	(24,987	)	(28,721	)
Employee share option scheme:
	Value of employee services	-	581		-		-		581
	Transfer from share option	107	(107	)	-		-		-
	Proceeds from shares issued	-	-		-		-		-
Total transactions with owners		107	474		-		-		581
Balance at Mar 31, 2016		333,622	15,952		(84,565	)	78,084		343,093

Xtreme Drilling and Coil Services Corp. Interim Consolidated Statements of Cash Flows For the three months ended March 31, 2016 and 2015
(in thousands of Canadian dollars)
(unaudited)
		2016		2015
Cash flow provided by:
Operating activities
Net loss for the period from continuing operations		(7,383	)	(2,058	)
Items not affecting cash:
	Depreciation and amortization	9,686		11,452
	Stock-based compensation	588		654
	Gain on disposal of equipment	(81	)	(44	)
	Provisions for doubtful accounts	-		(333	)
	Interest expense	1,673		1,144
	Interest paid	(936	)	(989	)
	Amortization of debt issuance costs	626		132
	Unrealized foreign exchange (gain) loss	(4,766	)	118
	Current tax expense	310		374
	Deferred tax expense	-		770
	Taxes paid	(1,761	)	(2,454	)
	Operating activities of discontinued operations	8,330		8,349
	Changes in items of working capital	(1,442	)	(7,551	)
Net cash generated from operating activities		4,844		9,564
Financing activities
	Proceeds from exercise of stock options	-		60
	Repayment of long-term debt	(3,896	)	(2,533	)
	Debt issuance cost	(1,270	)	-
Net cash used in financing activities		(5,166	)	(2,473	)
Investing activities
	Proceeds from sale of equipment	81		102
	Capital expenditures	(2,718	)	(3,033	)
	Investing activities of discontinued operations	(445	)	(6,736	)
	Changes in items of working capital relating to capital items	(72	)	(1,117	)
Net cash used in investing activities		(3,154	)	(10,784	)
Effect of exchange rate changes on cash and cash equivalents		(1,799	)	1,567

Decrease in cash and cash equivalents		(5,275	)	(2,126	)
Cash and cash equivalents - beginning of period		11,223		13,102

Cash and cash equivalents - end of period		5,948		10,976

Xtreme Drilling and Coil Services Corp.
EBITDA and Adjusted EBITDA
For the three months ended March 31, 2016 and 2015
(in thousands of Canadian dollars) (unaudited)
	2016		2015
Net (loss) income from continuing and discontinued operations	(3,734	)	2,755
Tax expense from continuing and discontinued operations	1,193		1,845
Interest expense from continuing and discontinued operations	1,673		1,144
Amortization of intangibles from continuing and discontinued operations	76		76
Depreciation and impairment from continuing and discontinued operations	13,408		14,211
EBITDA from continuing and discontinued operations	12,616		20,031

	2016		2015
EBITDA from continuing and discontinued operations	12,616		20,031
Adjustments for non-cash items from continuing and discontinued operations	(3,368	)	730
Adjusted EBITDA from continuing and discontinued operations	9,248		20,761
Adjusted EBITDA from continuing and discontinued operations as a percentage of revenue	26	%	30	%
Adjusted EBITDA from continuing and discontinued operations per share ($)	0.11		0.25
Net (loss) income from continuing and discontinued operations per share ($)	(0.04	)	0.03

	2015		2014
Stock-based compensation from continuing and discontinued operations	588		654
Gain on disposal of equipment from continuing and discontinued operations	(81	)	(44	)
Foreign exchange (gain) loss from continuing and discontinued operations	(3,875	)	118
Other expense from continuing and discontinued operations	-		2
Total adjustments for non-cash items from continuing and discontinued operations	(3,368	)	730

Reader Advisory

This news release contains forward-looking statements ("FLS"). The use of the words "may", "believe", "could", "would", "might", "will be taken", "occur" or "be achieved" and similar expressions identify FLS. More particularly, this news release contains statements that may relate to contracting, marketing, financing, construction, modifications, deployment, operation, utilization of drilling rigs in the Company's current and future fleet. Although Xtreme believes expectations reflected in these FLS are reasonable, readers should not place undue reliance on them because Xtreme can give no assurance they will prove to be correct. There are many factors that could cause FLS not to be correct, including risks and uncertainties inherent in the Company's business.

These statements are based on certain factors and assumptions including, but not limited to: the assessment of current and projected future operations; ongoing and future strategic business alliances, negotiations and opportunities to enter new, extend or complete existing contracts; the availability and cost of financing; foreign currency exchange rates; timing and magnitude of capital expenditures; expenses and other variables affecting rig operation, modification and construction; the ability and commitment of vendors to provide rig component equipment, services and supplies, including labor, in a cost-effective and timely manner; the issuance of applied-for patents; changes in tax rates; and government regulations. Although Xtreme considers the assumptions used to prepare this news release reasonable, based on information available to management as of May 3, 2016, ultimately the assumptions may prove to be incorrect.

Forward-looking statements are also subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from management's current expectations. These factors include, but are not limited to: the cyclical nature of drilling market demand, foreign currency exchange rates, and commodity prices; access to credit and to equity markets; the availability of qualified personnel; vendor-provided rig components; and, competition for customers.

Management's assumptions considered the following: compliance with the terms of the Company's current and proposed new credit facility; ongoing access to key supplies and components required to continue operating and maintaining equipment, including fuel; continued successful performance of drilling and related equipment; expectations regarding gross margin; recruitment and retention of qualified personnel; continuation or extension of existing long-term or multi-well contracts; revenue expectations related to shorter-term drilling opportunities; willingness and ability of customers to remit amounts owing to Xtreme in accordance with normal industry practices; and management of accounts receivable in direct relation to revenue generation.

In preparing this news release, management considered the following risk factors: fluctuations in crude oil and natural gas prices, supply and demand; fluctuation in foreign currency exchange and interest rates; financial stability of Xtreme's customers; current and future applications for Xtreme's proprietary technology; competition from other drilling contractors; regulatory and economic conditions in regions where Xtreme operates; environmental constraints; changes to government legislation; international trade barriers or restrictions; and, where appropriate, global political and military events.

Financial outlook information contained in this news release about prospective results of operations, financial position or cash provided by operating activities is based on assumptions about future events, including economic conditions and proposed courses of action, and on management's assessment of relevant information currently available. Readers are cautioned such financial outlook information contained in this news release is not appropriate for purposes other than for which it is disclosed here. Readers should not place undue importance on FLS and should not rely on this information as of any other date. Except as required pursuant to applicable securities laws, Xtreme disclaims any intention, and assumes no obligation, to update publicly or revise FLS to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLS or otherwise, or to explain any material difference between subsequent actual events and such FLS.

About Xtreme

Xtreme Drilling and Coil Services Corp. ("XDC" on the Toronto Stock Exchange) designs, builds, and operates a fleet of high specification drilling rigs and coiled tubing well service units featuring leading-edge proprietary technology including AC high capacity coil injectors, deep re-entry drilling capability, modular transportation systems and continuous integration of in-house advances in methodologies.

Currently Xtreme operates two service lines: Drilling Services (XDR) and Coil Services (XSR) under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada, the United States, Saudi Arabia and India. For more information about the Company, please visit www.xtremecoil.com.

Contact Information:

Xtreme Drilling and Coil Services Corp.
Matt Porter
Chief Financial Officer
+1 281 994 4600
ir@xtremecoil.com
www.xtremecoil.com

CORRECTION FROM SOURCE: Xtreme Drilling and Coil Services Reports 1st Quarter 2016 Financial and Operating Results and Appointment of Director