CALGARY, ALBERTA — (Marketwired) — 10/23/14 — Xtreme Drilling and Coil Services (“Xtreme”, the “Company”) (TSX: XDC) is pleased to provide a third quarter operations update along with an announcement of the date for the Q3 2014 earnings release and conference call.
Third Quarter Update
For the third quarter of 2014, Xtreme had total operating days of 2,173 which resulted in a utilization rate of 88% for the fleet of 21 XDR drilling rigs and 7 XSR coiled tubing units.
The Drilling Segment achieved utilization of 92% on 1,794 operating days. This was comprised of a 96% utilization rate for the 16 rig United States XDR fleet as well as 96% for the three rig Canadian XDR fleet and 55% for the two rig India operation. Overall, the US XDR rigs had 1,423 operating days as compared to 1,371 in the second quarter. The Company–s three Canadian drilling rigs operated for 268 days in the second quarter, which was an increase from 61 days in the second quarter of 2014 when the normal seasonal road bans were in effect.
During the third quarter the Company commenced operations in India. The two XDR 300 rigs were upgraded and mobilized from the United States in the prior quarter. The rigs totaled 103 operating days for the period and began drilling in late July and mid-August respectively. In the second quarter, the Company did not record any operating days in India although $4.7 million in mobilization revenue was recognized. The third quarter will include normal operating revenue and expenses as well as startup expenses related to preparing to operate in India.
For the third quarter, the Coil Services Segment achieved utilization of 73% on 379 operating days. This was comprised of a 98% utilization rate for the two XSR units in Saudi Arabia and a 75% utilization rate for the four actively marketed US XSR units. The XSR unit that was damaged in April went back in to service in late July after repairs were completed. The US division had a total of 197 operating days which was 32 more than the second quarter. The Company anticipates that the first of the eight announced new build XSR units will commence operations in November.
At quarter end, 19 XDR rigs were earning revenue (14 in the United States, three in Canada and two in India) and six XSR units were operating, four in the US and two in Saudi Arabia.
Third Quarter Results and Conference Call
The Company expects to announce third quarter 2014 financial and operating results after market close on Wednesday, November 5, 2014 with a follow-up conference call planned for Thursday, November 6, 2014 at 10:00 am MST, 11:00 am CT. 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.
+1 800-446-4472 (North America Toll-Free) or +1 416-340-2220 (Alternate)
Webcast Link:
An audio replay of the call will be available until Thursday, November 13, 2014. To access the replay, call +1 800-408-3053 or +1 905-694-9451 and enter pass code 2387478.
Reader Advisory
This press release contains forward-looking statements. More particularly, this press release contains statements concerning commencement of operations. 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, India and Saudi Arabia. For more information about the Company, please visit .
Contacts:
Xtreme Drilling and Coil Services Corp.
Matt Porter
Chief Financial Officer
+1 281 994 4600
Xtreme Drilling and Coil Services Corp.
9805 Katy Freeway, Suite 650
Houston, TX 77024