Xtreme Coil Drilling Corp.

Xtreme Coil Drilling Corp.

June 29, 2009 09:06 ET

Xtreme Coil Closes $46 Million Bought Deal Offering

CALGARY, ALBERTA--(Marketwire - June 29, 2009) -


Xtreme Coil Drilling Corp. (TSX:XDC) ("Xtreme Coil", the "Company") has closed its previously announced bought deal equity offering resulting in the issuance of 11,845,000 common shares ("Common Shares") (including 1,545,000 Common Shares issued pursuant to the exercise in full of the over-allotment option granted to the underwriters) at $3.90 per Common Share for total gross proceeds of $46,195,500. The syndicate of underwriters was led by Peters & Co. Limited and included National Bank Financial Inc.

Xtreme Coil concurrently closed its previously announced non-brokered private placement offering to certain directors, officers, employees and existing shareholders of Xtreme Coil resulting in the issuance of 258,500 Common Shares at $3.90 per Common Share for total gross proceeds of $1,008,150.

The net proceeds of the bought deal and private placement offerings will be used to reduce indebtedness, fund ongoing capital expenditures and for general corporate purposes.

Corporate Profile

Xtreme Coil develops and applies leading edge patented and patent-pending technology and designs to build, transport, and operate new Coil Over Top Drive® ("COTD™") drilling rigs. Currently contracted in the United States and Mexico and marketed to other international regions, Xtreme Coil's innovative, dual-purpose and efficient rigs drill with larger coil to reach hydrocarbons in deeper horizons. Xtreme Coil's proprietary technology also features modular transportation issues, larger coil injectors and new 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 forwarding looking statements. More particularly, this news release contains statements concerning the anticipated use of the net proceeds of the bought deal and private placement offerings. Although Xtreme Coil believes that 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 that 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 intended use of the net proceeds of the offerings by Xtreme Coil might change if the board of directors of the Company determines that it would be in the best interests of the Company to deploy the proceeds for some other purpose.

The forward looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligations 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.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The Toronto Stock Exchange has neither approved nor disapproved the contents of this news release.

Contact Information

  • Xtreme Coil Drilling Corp.
    Tom Wood
    Executive Chairman
    (403) 262-9500
    (403) 262-9522 (FAX)
    Xtreme Coil Drilling Corp.
    Rod Uchytil
    President and Chief Executive Officer
    (403) 262-9500
    (403) 262-9522 (FAX)
    Xtreme Coil Drilling Corp.
    1402, 500 Fourth Avenue SW
    Calgary, Alberta T2P 2V6
    Email: ir@xtremecoil.com
    Website: www.xtremecoildrilling.com