Xtreme Coil Drilling Corp.

Xtreme Coil Drilling Corp.

August 23, 2011 08:00 ET

Xtreme Coil Appoints Chief Financial Officer and Continues Fleet Expansion

CALGARY, ALBERTA--(Marketwire - Aug. 23, 2011) - Xtreme Coil Drilling Corp. ("Xtreme Coil", the "Company") (TSX:XDC) announces the appointment of Matthew S. Porter to the executive management team as chief financial officer and provides an update regarding fleet expansion and operations.

Matthew S. Porter Appointed Chief Financial Officer

Effective August 25, 2011, Xtreme Coil's board of directors welcomes the appointment of Matthew S. ("Matt") Porter as chief financial officer based in Houston, Texas. Mr. Porter joins Xtreme Coil from his recent position as chief financial officer at a land drilling and well servicing company that was acquired in June 2011 by another company. Before his promotion to chief financial officer for the drilling contractor, Mr. Porter was vice president, corporate finance. He was instrumental in completing acquisitions and business process changes which met strategic objectives and led to increased revenues and margins, managing all aspects of merger and acquisition activity including deal sourcing, structuring, valuation and communication with target companies.

Mr. Porter is a chartered financial analyst ("CFA") and has worked in a multi-cultural business environment having had experience in the United States, the United Kingdom, France, China, Libya, Egypt and Saudi Arabia. From the University of Oklahoma, he holds a Masters of Business Administration with an emphasis in finance and a Bachelors of Business Administration with a major in management. Mr. Porter is a former president and member of the CFA Society of Oklahoma and holds memberships in the International Association of Drilling Contractors and the Oklahoma Independent Petroleum Association.

Fleet Expansion and Operations Update

Xtreme Coil has entered into a multi-year contract to construct and operate a seventh new-build XDR 500 rig and, simultaneously, extended the current contract of another XDR 500 rig for an additional 365 days with an independent exploration and production company and existing customer. Both drilling rigs will operate in North Dakota's Bakken resource play. Upon completion of the new rig, Xtreme Coil will have four rigs working in this region. Xtreme Coil expects to commence operations with this rig in the first quarter of 2012.

Twelve rigs in Xtreme Coil's current fleet are operating under long-term contracts. At the completion of the 2011-2012 capital build program, the Company expects to have 18 rigs operating under fixed-term contracts in a fleet of 20 drilling rigs and 11 coiled tubing service rigs.

Xtreme Coil's third customized rig for deep coil well servicing has commenced operations on a post-frac deep horizontal well clean-out in North Dakota's Bakken resource play. Following completion of the field trial, the Company anticipates interest in this rig from other customers in the Bakken.

Calgary Office Relocates

Xtreme Coil's Calgary head office will relocate on Wednesday, August 24, 2011 to a new address as follows: #770, 340 – 12 Avenue SW, Calgary, Alberta T2R 1L5. This office houses some of the Company's corporate and engineering staff and, although services will be interrupted to complete the move, telephone numbers will remain the same: main reception 403 262-9500; facsimile 403 262-9522.

Corporate Profile

Xtreme Coil owns and operates a fleet of proprietary, dual-purpose deep capacity drilling rigs featuring the Company's patented Coil Over Top Drive® designs and is expanding the fleet to include extended-reach coiled tubing service rigs. These rigs offer oil and natural gas companies outstanding performance and efficiency through leading-edge technology for conventional and coil drilling and deep coil well services. Xtreme Coil's common shares trade on the Toronto Stock Exchange under the symbol "XDC."

Reader Advisory

This news release contains forward-looking statements ("FLS"). More particularly, this news release contains FLS about changes to executive management and execution of contracts for new-build drilling rigs. Although Xtreme Coil believes the expectations reflected in these FLS are reasonable, undue reliance should not be placed on them because Xtreme Coil can give no assurance they will prove to be correct. Since FLS address future events and conditions, by their very nature they involve inherent risks and uncertainties. The FLS contained in this news release are made as of the date hereof and Xtreme Coil undertakes no obligation to update publicly or revise any FLS or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Readers may review a FLS discussion in more detail in the management's discussion and analysis and financial statements for the three and six months ended June 30, 2011 filed on www.sedar.com and on the Company's website www.xtremecoildrilling.com.

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.
    #770, 340 - 12 Avenue SW
    Calgary, Alberta T2R 1L5