Xtreme Coil Drilling Corp.
TSX : XDC

Xtreme Coil Drilling Corp.

July 13, 2011 09:15 ET

Xtreme Coil Contracts Four New XDR 500 Drilling Rigs

CALGARY, ALBERTA--(Marketwire - July 13, 2011) - Xtreme Coil Drilling Corp. (TSX:XDC) ("Xtreme Coil", the "Company") announces the award of long-term contracts by a large exploration and production ("E&P") company to build and operate four new XDR 500 drilling rigs with commencement of operations staged throughout 2012.

Growth Through New-Build Rigs

Xtreme Coil's growth strategy involves expanding the fleet of advanced technology rigs, especially larger rigs featuring deeper drilling capability. This announcement demonstrates significant market confidence resulting from our strong performance in the Greater Denver-Julesberg Basin since we initiated operations in that region in 2007.

In total, the current value of the four new drilling contracts is more than $100 million and each rig will operate under a three-year contract. Initially, the Company anticipates these four new drilling rigs will operate in the Niobrara resource play in the Rocky Mountain region of the United States. Delivery of the first new rig is planned for the first quarter of 2012, with one rig planned for delivery in each of the following three quarters. In total, the Company expects the four new rigs will cost approximately CAD$65-70 million to construct over the next fifteen months. Construction of the first of these four rigs is already underway.

Including these four new XDR 500 drilling rigs, Xtreme Coil has committed to adding eight XDR 500 drilling rigs to the fleet since the introduction of this model in October 2010. Currently, one rig is operating in the Bakken in North Dakota and one is in the Eagle Ford in Texas. Two previously announced XDR 500 rigs are nearing completion; one is expected to deploy in July 2011 and one, later in 2011 third quarter or early in the fourth quarter.

Reader Advisory

This news release contains forward-looking statements within the meaning of applicable securities laws ("FLS"). More particularly, this news release contains statements that may relate to financing, contracting, marketing, construction, modifications or upgrades, deployment, operation and utilization of drilling rigs in the Company's current and future fleet. Although Xtreme Coil believes expectations reflected in these FLS are reasonable, readers should not place undue reliance on them because Xtreme Coil can give no assurance they will prove to be correct. There are many factors that could cause FLS not to be correct, including risks and uncertainties inherent in the Company's business.

Readers may review a more detailed discussion of FLS in the management's discussion and analysis and financial statements for the twelve months ended December 31, 2010 and the three months ended March 31, 2011 filed on www.sedar.com and on the Company's website www.xtremecoildrilling.com. Readers are cautioned financial outlook information contained in this news release is not appropriate for purposes other than for which it is disclosed here. Readers should not place undue importance on FLS and should not rely on this information as of any other date. Except as required pursuant to applicable securities laws, Xtreme Coil disclaims any intention, and assumes no obligation, to update publicly or revise FLS to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLS or otherwise.

About Xtreme Coil

Xtreme Coil owns and operates a fleet of proprietary, dual-purpose deep capacity drilling rigs featuring the Company's patented COTD® designs. These rigs offer oil and natural gas companies outstanding performance and efficiency through leading-edge technology for both conventional and coil drilling. Currently, we are drilling under contract in Colorado, North Dakota, Texas and Wyoming. Two deep coil service rigs are conducting re-entry horizontal drilling operations in Saudi Arabia. Xtreme Coil is expanding deep coil well servicing operations with six units undergoing technical upgrades before they will be ready to deploy later in 2011. Xtreme Coil's common shares trade on the Toronto Stock Exchange under the symbol "XDC."

Contact Information

  • Xtreme Coil Drilling Corp.
    Dale W. Wilhelm
    Chief Financial Officer
    +1 403 262 9500
    +1 403 262 9522 (FAX)

    Xtreme Coil Drilling Corp.
    1402, 500 Fourth Avenue SW
    Calgary, Alberta T2P 2V6
    ir@xtremecoil.com
    www.xtremecoildrilling.com