Xtreme Coil Drilling Corp.

Xtreme Coil Drilling Corp.

October 22, 2010 09:20 ET

Xtreme Coil Announces New Rig Construction

CALGARY, ALBERTA--(Marketwire - Oct. 22, 2010) - Xtreme Coil Drilling Corp. (TSX:XDC) ("Xtreme Coil", the "Company") provides an update regarding ongoing operations which involve recent diversification into North American resource plays as well as other corporate activities.

Long-term Contract Requires New Rig

Xtreme Coil is pleased to announce signing, with a new customer, a multi-year contract which will require the construction of a new Coil Over Top Drive® ("COTD®") drilling rig scheduled for delivery in the 2011 second quarter. The XTC 500, Xtreme Coil's newest rig model, will be a fit-for-purpose rig designed for deep horizontal resource plays. This is a variable frequency drive AC (alternating current) electric rig. It has a 500,000 lb hook load capable of drilling to 21,000 feet, can rack all the drill pipe in the derrick and includes a skidding system for multi-well pad drilling. It is designed to drill with and rack 45 foot joints of drill pipe in double stands which reduces the number of connections required during operations. This is a considerable technical improvement over a conventional rig that drills with 30 foot joints of drill pipe in triple stands.

The new rig will be the second XTC 500 contracted to work in the Bakken development region of North Dakota in the United States of America ("United States") and, when completed, will bring Xtreme Coil's leading edge, advanced technology drilling fleet to 17 rigs.

Current Operations

Xtreme Coil estimates total operating days for 2010 third quarter at approximately 640 days. During the third quarter, several rigs in the fleet were redeployed. Operating days contributed during the period by these rigs depended on the timing of their commencement of operations. In the Kingdom of Saudi Arabia ("Saudi Arabia"), one rig commenced operations in August and the second rig for the project commenced operations in September.

Currently, Xtreme Coil has 12 rigs operating: ten in the United States and two in Saudi Arabia. Of the four rigs not presently under contract, one XTC 200 DT(PLUS) is being prepared for expected deployment to the Bakken shale project before the end of this year. The three drilling rigs that remain stacked in Mexico are all XTC 200 rigs and we continue to explore a range of opportunities for their redeployment to projects within or outside of North America. The results of the first XTC 200 rig being deployed to the Bakken could determine the next phase of activity for the remaining three rigs.

2010 Nine Month Results

Xtreme Coil expects to release on Friday, November 12 financial and operating results for the three and nine months ended September 30, 2010. A conference call to discuss these results is planned for Monday, November 15 at 9:00am MT (10:00am CT). Details for the conference call will be announced in a news release several days prior to the call.

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 200DTR(PLUS), 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 contracting, marketing, financing, construction, deployment, operation, and utilization of rigs in the Company's current and future fleet of drilling rigs, as well as any potential outcome relating to claims and litigation. 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.
    Rod Uchytil
    President and Chief Executive Officer
    +1 403 262 9500
    +1 403 262 9522 (FAX)
    Xtreme Coil Drilling Corp.
    1402, 500 Fourth Avenue SW
    Calgary, Alberta T2P 2V6