Xtreme Coil Drilling Corp.
TSX : XDC

Xtreme Coil Drilling Corp.

October 07, 2010 16:05 ET

Xtreme Coil Announces Credit Facility Update

CALGARY, ALBERTA--(Marketwire - Oct. 7, 2010) - Xtreme Coil Drilling Corp. (TSX:XDC) ("Xtreme Coil", the "Company") announces completion of discussions with the Company's lenders and the September 30, 2010 execution of a fifth amending agreement to its credit agreement dated May 30, 2008. This amendment extends the long-term debt facility ("Tranche B") term date and defines the maturity date to be one year following the term date. The Tranche B term date has been extended to June 30, 2011 or such other date as may be agreed to by the lenders upon delivery of an extension request by Xtreme Coil. In addition, this amendment replaces the debt service coverage ratio covenant with a funded debt to EBITDA covenant. The remaining terms of the May 30, 2008 credit agreement, as previously amended, are substantially unchanged.

Corporate Profile

Xtreme Coil develops and applies leading-edge patented and patent-related technology and designs to build, transport, and operate new COTD® drilling rigs. In addition to contracts negotiated in the United States of America, the Kingdom of Saudi Arabia and the United Mexican States, Xtreme Coil markets proprietary, dual-purpose drilling rigs to existing customers and to other international operating regions. Xtreme Coil drills with larger coil and with conventional drill pipe to reach hydrocarbons in deeper horizons. Including the most recent re-entry rig design, the XTC 200DTRPLUS, Xtreme Coil's fit-for-purpose rigs feature high capacity injectors as well as innovative handling of conventional pipe and coiled tubing, modular transportation systems and operating 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 forward-looking statements. More particularly, this news release contains statements that may relate to the Company's credit facility as a result of contracting, marketing, financing, construction, deployment, operation, and utilization of rigs in the Company's current and future fleet of drilling rigs. Although Xtreme Coil believes the expectations reflected in these forward-looking statements are reasonable, readers should not place undue reliance on the statements because Xtreme Coil can give no assurance they will prove to be correct. Since forward-looking statements encompass 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, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Xtreme Coil Drilling Corp.
    Rodney J. Uchytil
    President and Chief Executive Officer
    (403) 262-9500
    (403) 262-9522 (FAX)
    or
    Xtreme Coil Drilling Corp.
    Elizabeth T. Wilkinson
    Chief Financial Officer
    (403) 262-9500
    (403) 262-9522 (FAX)
    or
    Xtreme Coil Drilling Corp.
    1402, 500 Fourth Avenue SW
    Calgary, Alberta T2P 2V6
    ir@xtremecoil.com
    www.xtremecoildrilling.com