Xtreme Drilling and Coil Services Announces $15 Million Bought Deal Offering

CALGARY, ALBERTA--(Marketwire - Sept. 10, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE U.S.

Xtreme Drilling and Coil Services ("Xtreme") (TSX:XDC) announces that it has entered into an agreement with Peters & Co. Limited, (the "Underwriter"), pursuant to which the Underwriter has agreed to purchase, on a bought deal basis, 13,045,000 common shares ("Common Shares") of Xtreme at a price of $1.15 per Common Share for aggregate gross proceeds of $15,001,750. As part of the offering and as a condition thereof, certain insiders, directors and officers of the Corporation will subscribe for a minimum of $3.0 million and up to a maximum of $5.0 million Common Shares at $1.15 per Common Share. The Underwriter will have the option to purchase up to an additional 15 percent of the total issue of Common Shares, exercisable in whole or in part at the sole discretion of the Underwriter up to 30 days after the closing date, at the same issue price, to cover over allotments, if any. If such option is exercised in full, the aggregate gross proceeds of the offering will be $17,252,012. The Common Shares will be offered in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario by way of a short form prospectus.

Net proceeds of the offering will be used in part or whole to reduce indebtedness and for general corporate purposes.

About Xtreme

Xtreme Drilling and Coil Services Corp. ("XDC" on the Toronto Stock Exchange) designs, builds, and operates a fleet of high specification drilling rigs and coiled tubing well service units featuring leading-edge proprietary technology including AC high capacity coil injectors, deep re-entry drilling capability, modular transportation systems and continuous integration of in-house advances in methodologies.

Currently Xtreme operates two service lines: Drilling Services (XDR) and Coil Services (XSR) under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada, the United States and Saudi Arabia. For more information about the Company, please visit www.xtremecoil.com.

Reader Advisory

This press release contains forwarding looking statements. More particularly, this press release contains statements concerning the anticipated use of the net proceeds of the offering. Although the Company believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because the Company 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 offering by the Company 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 press 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 press 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.