Xtreme Drilling and Coil Services
TSX : XDC

Xtreme Drilling and Coil Services

April 16, 2014 09:00 ET

Xtreme Drilling and Coil Services Announces First Quarter Operations Update, Conference Call Details, and the Departure of President and Chief Technology Officer

CALGARY, ALBERTA--(Marketwired - April 16, 2014) - Xtreme Drilling and Coil Services (TSX:XDC) ("Xtreme", the "Company") is pleased to provide a first quarter operations update along with an announcement of the date for the Q1 2014 earnings release and conference call, as well as the departure of President and Chief Technology Officer, Richard Havinga.

First Quarter Update

For the first quarter of 2014, Xtreme had total operating days of 2,120 which resulted in a utilization rate of 87% for the fleet of 21 XDR drilling rigs and seven XSR coiled tubing units.

The Drilling Segment achieved utilization of 90% on 1,731 operating days. This was comprised of a 92% utilization rate for the 18 rig United States XDR fleet and 74% for the three rig Canadian XDR fleet. During the first quarter the US XDR drilling division performed a major overhaul on one rig and minor maintenance on two additional rigs. This led to a decrease of 66 operating days in the US from the prior quarter. In addition, two rigs were prepping for mobilization to India. These two rigs are included in operating days as they earn standby revenue during modification and transport. In Canada, the Company's three drilling rigs operated for 204 days, which was down four days from the prior quarter.

For the quarter, the Coil Services Segment achieved utilization of 78% on 388 operating days. This was comprised of a 97% utilization rate for the two XSR units in Saudi Arabia and an 84% utilization rate for the four actively marketed XSR units in the US. Included in the overall coil services utilization is one additional unit that is currently idle in the US but which is being marketed internationally. The US XSR units for the quarter averaged 19 operating days per month on each unit. The fourth XSR unit began operations in late January.

Beginning in the fourth quarter of 2013, the Company adjusted the methodology for calculating utilization in the US coil service division. Available operating days is now defined as 22 days per month for each unit as opposed to total calendar days which was utilized in the past.

At quarter end, 20 XDR rigs were earning revenue and six XSR rigs were operating, four in the US and two in Saudi Arabia.

Fourth Quarter Results and Conference Call

The Company expects to announce first quarter 2014 financial and operating results after market close on Wednesday, May 7, 2014 with a follow‐up conference call planned for Thursday, May 8, 2014 at 10:00am MDT, 11:00am CDT. Tom Wood, Chief Executive Officer, will host the conference call with participation from Matt Porter, Chief Financial Officer, and will answer questions from analysts and investors.

To participate in the conference call, please dial in as follows approximately ten minutes before the start time in your time zone.

+1 866-226-1798 (North America Toll‐Free) or +1 416340-2220 (Alternate)

Webcast link: http://www.gowebcasting.com/5381

An audio replay of the call will be available until Thursday, May 15, 2014. To access the replay, call +1 800‐408‐3053 or +1 905‐694‐9451 and enter pass code 5131671.

Departure of President and Chief Technology Officer

President and Chief Technology Officer, Richard Havinga, has given notice of his intention to depart the Company at the end of May. Xtreme will transition Mr. Havinga's responsibilities internally over the next six weeks. Effective immediately, Mr. Charlie Proulx, VP of Coil Services North America, will take over management of global coil services which includes the Saudi Arabian operation.

"The Board extends sincere appreciation to Richard Havinga for his significant contribution to the growth of the Company. Richard has been with the Company since inception and was an integral part of Xtreme as it grew from a startup in 2005 to one of the most technologically advanced energy service providers today." commented CEO Tom Wood, " Xtreme's directors and management wish him the very best in his future endeavors."

Reader Advisory

This press release contains forwarding looking statements. More particularly, this press release contains statements concerning the announcement of financial and operating results, commencement of operations in India and the transition of Mr. Havinga's responsibilities to other staff within the Company 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.

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.

Contact Information