CALGARY, ALBERTA--(Marketwire - Jan. 4, 2013) - Xtreme Drilling and Coil Services (TSX:XDC) is pleased to provide a fourth quarter operational update along with an update on the current credit facility and announcement of the date for the Q4 2012 earnings release and conference call.
Fourth Quarter Update
During the fourth quarter of 2012, Xtreme mobilized the final new-build XDR 500 drilling rig to Colorado to commence operations on a three year contract. The company estimates 1,787 total operating days for the fourth quarter resulting in greater than 72% utilization of the drilling and coiled tubing fleet. At year end 19 XDR rigs were working and 4 XSR rigs were operating, two in the US and two in Saudi Arabia. It is anticipated that the company will have an additional XDR rig begin operations in January which will bring the total operating XDR rigs to 20 out of 21 available.
Credit Facility Update
Xtreme has completed discussions with its lenders resulting in the December 31, 2012 execution of a fourth amending agreement to its credit facility with a syndicate of financial institutions led by HSBC Bank Canada. This amendment extends the facility to November 2, 2013. It also modifies the funded debt to EBITDA covenant ratios for the fourth quarter of 2012 and the first quarter of 2013 to 4.0x and 3.25x respectively and remains at 3.0x thereafter. The terms of the credit agreement are substantially unchanged.
XSR Asset Sale Update
As previously announced the company entered into an agreement to sell an XSR unit to an entity in the Middle East. The sales price was $9.8 million and a non-refundable deposit has been made on the unit. However, the closing of the transaction has been delayed as the unit needs additional time to prepare for shipment overseas.
2012 Fourth Quarter Results and Conference Call
The Company expects to announce 2012 fourth quarter financial and operating results after market close on Wednesday, March 6, 2013 with a follow‐up conference call planned for Thursday, March 7 at 9:00am MDT,10:00am CT.
This press release contains forwarding looking statements. More particularly, this press release contains statements concerning commencement of operations and closing on an asset sale. 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 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.
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.