Contact Information: Xtreme Coil Drilling Corp. Rod Uchytil President and Chief Executive Officer +1 403 262 9500 +1 403 262 9522 (FAX) ir@xtremecoil.com www.xtremecoildrilling.com or Xtreme Coil Drilling Corp. 1402, 500 Fourth Avenue SW Calgary, Alberta T2P 2V6
CALGARY, ALBERTA--(Marketwire - Feb. 25, 2011) - Xtreme Coil Drilling Corp. (TSX:XDC) ("Xtreme Coil", the "Company"), a drilling contractor which develops and applies patented coiled tubing technology, announces a significant fleet expansion to broaden its coiled tubing well servicing capability in North American resource plays.
Specifically, Xtreme Coil has agreed to purchase five masted coiled tubing service rigs. This acquisition follows the Company's recent announcement that it is customizing two current rigs to begin providing deep coiled tubing well services in North American oil and gas plays.
The five rigs being added to Xtreme Coil's fleet are highly mobile masted coil rigs intended for contracts involving re-entry, coiled tubing clean-outs, fracturing, wellbore extensions, production logging, perforating, stimulations and other well servicing work. These rigs will be upgraded before commencing field operations.
Xtreme Coil's decision to expand the fleet is in response to evolving market demand. Increased exploration and development activity in deeper shale formations in North America has boosted demand for coiled tubing services to fracture and clean out wells following fracture treatments.
Modifications will include installation of Xtreme Coil injectors with up to 200,000 lb capacity utilizing large diameter coil and the addition of fluid pumps. Additionally, the rigs will utilize Xtreme Coil's proprietary double trailer configuration for transportation of the coil. Some of these rigs will be the deepest reach coiled tubing service rigs in the world.
Xtreme Coil expects to take delivery of the five rigs by March 31, 2011 and to have them ready to commence operations within six months. As well, the Company expects the two XTC 200 Coil Over Top Drive(R) ("COTD(R)") rigs already being customized to provide coiled tubing well services will be completed during the second quarter of 2011.
With the execution of the purchase agreement announced today, Xtreme Coil's rig fleet will consist of seven coil service rigs and 14 COTD(R) drilling rigs. These additions, plus a previously announced XTC 500 new-build drilling rig, will bring Xtreme Coil's fleet size to a total of 22 rigs.
About Xtreme Coil
Xtreme Coil owns and operates a fleet of proprietary, dual-purpose drilling rigs featuring the Company's patented COTD(R) design. These rigs offer oil and gas companies outstanding performance and efficiency through leading-edge technology for both conventional and coil drilling. As of January 31, 2011, Xtreme had 14 rigs in the United States, situated in Colorado, North Dakota, Texas and Wyoming, and two rigs conducting re-entry drilling operations in Saudi Arabia. Xtreme Coil's common shares trade on the Toronto Stock Exchange under the symbol "XDC."
Reader Advisory
This news release contains forward-looking statements. More particularly, this news release contains statements about potential new operations and services, rig designs, customizations and expected future operations. 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 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.