CALGARY, ALBERTA — (Marketwired) — 12/16/13 — Xtreme Drilling and Coil Services (“Xtreme” or the “Company”) (TSX: XDC) announces the recent completion of new contracts with aggregate committed days of approximately 2,520. This increases the total number of contracted operating days by 50% to 7,550 for the Company.
The XDR Drilling Services segment has approximately 4,630 operating days contracted for 2014 on the fleet of 21 drilling rigs. For 2015 the XDR division has approximately 1,054 operating days currently contracted. Management is actively negotiating additional contracts for four XDR drilling rigs which come up for renewal within the next 45 days. It is anticipated that each of these rigs will renew on a take or pay term contract.
The XSR Coil Services segment has approximately 730 operating days contracted in 2014 with an additional 1,148 days contracted beyond 2014. The XSR coiled tubing units in the United States operate on the spot market and are not included in the contracted days total. However, utilization has remained strong on the spot market and it is anticipated that the fourth and final new build XSR unit will deploy within the next week.
As of December 16, 2013 the Company had all 21 XDR drilling rigs operating and five of the Company–s seven coiled tubing units in operation. This level of activity represents record utilization for Xtreme. Chief Executive Officer Tom Wood commented on the increased level of activity. “We are very encouraged by the response during recent contract renewals. In the XDR division, our core operating areas of Colorado and North Dakota have remained strong and receptive to Xtreme–s differentiated technology and service quality. We continue to focus on driving down our customer–s costs through efficient drilling operations and best in class mobilization times. On the XSR side of the business we continue to displace legacy coiled tubing equipment in the Eagle Ford shale of South Texas. Our customers now realize the value proposition that Xtreme–s patented technology and proven delivery system provides is unmatched in the market. As such, our revenue and utilization continue to trend higher in the fourth quarter. I anticipate that we will have additional renewals and opportunities to announce in the near future as we are close to finalizing a two XDR rig contract in a new international market. I am very optimistic about 2014 as we have positioned the Company on a solid foundation for the next leg of growth.”
The following table is a summary of Xtreme–s contracted fleet as of December 16, 2013.
About Xtreme Drilling and Coil Services
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 and Coil Services 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 .
Contacts:
Xtreme Drilling & Coil Services
Matt Porter
Chief Financial Officer
+1 281 994 4600