Xtreme Coil Drilling Corp.
TSX : XDC

Xtreme Coil Drilling Corp.

January 07, 2011 16:27 ET

Xtreme Coil Renews Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - Jan. 7, 2011) - Xtreme Coil Drilling Corp. ("Xtreme Coil", the "Company") (TSX:XDC) announces the Toronto Stock Exchange ("TSX") has approved the renewal of the Company's Normal Course Issuer Bid (the "Bid") to purchase Common Shares for cancellation for a further one year period. The Bid will commence on January 11, 2011 and will expire on January 10, 2012 or such earlier date as Xtreme Coil may complete its purchases under the Bid. Peters & Co. Limited has agreed to act on the Company's behalf to make purchases of Common Shares pursuant to the Bid.

Under Xtreme Coil's previously approved Bid, during the twelve month period commencing January 7, 2010, the Company purchased an aggregate of 54,100 Common Shares at an average price of $2.70. All such Common Shares were subsequently cancelled.

Xtreme Coil currently has 53,223,234 Common Shares issued and outstanding. Under the renewed Bid, the Company may purchase up to an additional 2,661,162 Common Shares of Xtreme Coil, representing approximately five percent of the issued and outstanding Common Shares of Xtreme Coil. The maximum Common Shares the Company may purchase for cancellation per trading day is 28,526 which is equal to 25 percent of the average daily trading volume for the six months prior to December 31, 2010. The average daily trading volume for such period (excluding any purchases made by the Company through the facilities of the TSX under the Bid during the six calendar months preceding the date of acceptance) was 114,105.

Purchases of Common Shares will be made on the open market through the facilities of the TSX. The price which Xtreme Coil will pay for any Common Shares purchased will be the prevailing market price of the Common Shares on the TSX at the time of such purchase. Xtreme Coil will determine the actual number of Common Shares that may be purchased for cancellation and the timing of any such purchases.

The board of directors and management of Xtreme Coil believe, from time to time, the market price of the Common Shares may not fully reflect the underlying value of the Common Shares and, at such times, the purchase of Common Shares is in the best interests of Xtreme Coil. Such purchases will increase the proportionate interest of, and may be advantageous, to all remaining shareholders.

Corporate Profile

Xtreme Coil develops and applies leading-edge patented and patent-related technology and designs to build, transport, and operate new Coil Over Top Drive® drilling rigs. In addition to contracts negotiated in several regions of the United States of America, in the Kingdom of Saudi Arabia and in the United Mexican States, Xtreme Coil markets proprietary, dual-purpose drilling rigs to existing customers and to potential customers in 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 200DTRPLUS, Xtreme Coil's fit-for-purpose rigs feature AC draw works, top drives and 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 concerning the number of Common Shares that may be purchased for cancellation and the timing of any such purchases under the normal course issuer bid. Although Xtreme Coil believes 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 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 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 or information, 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)
    or
    Xtreme Coil Drilling Corp.
    1402, 500 Fourth Avenue SW
    Calgary, Alberta T2P 2V6
    www.xtremecoildrilling.com