Xtreme Coil Drilling Corp.
TSX VENTURE : XDC

Xtreme Coil Drilling Corp.

June 06, 2006 12:25 ET

Xtreme Coil Drilling- Corporate Update

CALGARY, ALBERTA--(CCNMatthews - June 6, 2006) - Xtreme Coil Drilling Corp. ("Xtreme") (TSX VENTURE:XDC) provides this corporate update to shareholders and other interested parties.

Ric Charron, chief executive officer, announced, "We can report broad market acceptance of Xtreme's patent-pending technology which has created strong demand for our coil over top drive drilling rigs, ten of which are currently under construction." He commented further, "While we continue preparations to deliver Xtreme's initial drilling rig to the first field location later in June, we are conducting meetings with a number of potential customers in the United States and Canada to negotiate long term contracts for our new drilling rigs."

Xtreme has entered into contracts for nine of the new coil drilling rigs. Contract terms vary, depending on the services required by Xtreme's customers, with the majority involving three years, 365 days per year and take-or-pay provisions. These long term contracts are in place for Xtreme's XTC 400, XTC 300, and XTC 200 coil drilling rigs.

In reference to Xtreme's day-to-day corporate activities, Mr. Charron said "Xtreme has developed alliances with major manufacturing firms to ensure they can meet both present and future demand for our new drilling rig designs. During the lead times involved in manufacturing our unique equipment, we will continue to meet with potential clients and investors to keep them apprised of our progress and our plans for Xtreme's growth." He added, "Our management team is focused on becoming fully operational and we are moving quickly toward that objective."

Xtreme announces two recent management appointments. Scott Hennenfent was appointed corporate controller, based in Calgary, and Brian Wigington was appointed controller with responsibility for Xtreme's United States' operations based in Casper, Wyoming. "These two individuals have extensive experience in the North American energy services sector and will add valuable expertise to Xtreme's corporate team," said Mr. Charron.

Background

Xtreme operates as a drilling contractor using coiled tubing drilling rigs which employ new patent-pending coil drilling designs and technology. We have hired third parties under contract to build these units and expect deliveries to commence late in the second quarter of 2006. In addition to coil drilling capability, Xtreme's rigs are designed to drill with conventional jointed drill pipe where necessary. Upon completion of the coil drilling units, Xtreme will contract these rigs to oil and natural gas exploration and development companies both in Canada and in the United States, where the majority of Xtreme's drilling fleet will operate. On May 4, 2006, Xtreme common shares began trading on the TSX Venture Exchange under the symbol "XDC".

Reader Advisory

The information in this news release may include certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and, as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although Xtreme believes that the expectations reflected in forward-looking statements are reasonable, we can give no assurances that the expectations of any forward-looking statements will prove to be correct. Xtreme disclaims any intention, and assumes no obligation, to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise, except as required pursuant to applicable securities laws.

Information relating to Xtreme Coil Drilling Corp. is also available on SEDAR at www.sedar.com.

The TSX Venture Exchange has neither approved nor disapproved the contents in this press release.

Contact Information

  • Xtreme Coil Drilling Corp.
    Ric Charron
    Chief Executive Officer
    (403) 262-9500
    (403) 262-9540 (FAX)
    or
    Xtreme Coil Drilling Corp.
    1402, 500 Fourth Avenue SW
    Calgary, Alberta T2P 2V6
    Email: xtreme.info@xtremecoildrilling.com