Xtreme Drilling and Coil Services

Xtreme Drilling and Coil Services

November 04, 2011 17:54 ET

Xtreme Expands Credit Facility to Fund Growth

CALGARY, ALBERTA--(Marketwire - Nov. 4, 2011) - Xtreme Drilling and Coil Services (TSX:XDC) ("Xtreme" or the "Company") announced today it has entered into an agreement ("Credit Agreement") with a syndicate of financial institutions led by HSBC Bank Canada to provide an increased credit facility of $150 million which replaces the previous $90 million facility. The new Credit Agreement consists of $15 million as a revolving operating loan facility to assist with financing general corporate and working capital requirements and $135 million as an extendible loan facility to refinance existing bank debt and to provide working capital for capital expenditures focused primarily on new-build rig contracts. The Credit Agreement is secured by the Company's North American rig assets and is provided on a one-year annually renewable term. If not renewed, both facilities convert to a two-year non-revolving term loan.

"With this expansion of Xtreme's Credit Agreement, the Company has the financial strength to execute on previously-announced fleet expansion plans as well as more recently-negotiated new-build rig contracts", commented Rod Uchytil, president and chief executive officer. He further noted, "Xtreme intends to grow operations by strategically deploying new-build rigs to North American resource plays for which our XDR 500 drilling rigs and XSR deep coiled tubing service rigs are ideally suited."

Reader Advisory

This news release contains forward-looking statements within the meaning of applicable securities laws ("FLS"). More particularly, this news release contains statements that may relate to financing arrangements, use of funds available under the Credit Agreement, contracting, marketing, construction, modifications or upgrades, deployment, operation and utilization of assets in the Company's current and future fleet. Although Xtreme believes expectations reflected in these FLS are reasonable, readers should not place undue reliance on them because Xtreme can give no assurance they will prove to be correct. There are many factors that could cause FLS not to be correct, including risks and uncertainties inherent in Xtreme's business.

Readers may review an FLS discussion in more detail in the management's discussion and analysis and financial statements for the twelve months ended December 31, 2010 and the six months ended June 30, 2011 filed on www.sedar.com and on Xtreme's website. Readers are cautioned financial outlook information contained in this news release is not appropriate for purposes other than for which it is disclosed here and should not rely on this information as of any other date. Except as required pursuant to applicable securities laws, Xtreme disclaims any intention, and assumes no obligation, to update publicly or revise FLS to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLS or otherwise.

About Xtreme

Xtreme Coil Drilling Corp. ("XDC" on the Toronto Stock Exchange) and its subsidiaries operate under the brand name Xtreme Drilling and Coil Services. Xtreme owns and operates a fleet of proprietary, dual-purpose deep capacity drilling rigs and coiled tubing well servicing units featuring the Company's patented COTD® designs. Xtreme offers oil and natural gas producers outstanding performance and efficiency through leading-edge technology. Currently, we are drilling under contracts in Colorado, North Dakota, Texas, Wyoming and Utah. Two deep coil service rigs are conducting re-entry horizontal drilling operations under a joint venture in Saudi Arabia and one is based in North Dakota to provide ultra-deep horizontal well post fracture cleanouts. For more information about the company, please visit www.xtremecoil.com.

Contact Information

  • Xtreme Coil Drilling Corp.
    Rod Uchytil
    President and Chief Executive Officer
    +1 403 262 9500
    +1 403 262 9522 (FAX)

    Xtreme Coil Drilling Corp.
    Matt Porter
    Chief Financial Officer
    +1 403 262 9500
    +1 403 262 9522 (FAX)

    Xtreme Coil Drilling Corp.
    #770, 340 - 12th Avenue SW
    Calgary, Alberta T2R 1L5