Xtreme Coil Closes $57.9 Million Bought Deal Offering

CALGARY, ALBERTA--(Marketwire - June 1, 2011) -

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Xtreme Coil Drilling Corp. (TSX:XDC) ("Xtreme Coil", the "Company") has closed its previously announced bought deal equity offering resulting in the issuance of 12,190,000 common shares ("Common Shares") (including 1,590,000 Common Shares issued pursuant to the exercise in full of the over-allotment option granted to the underwriters) at $4.75 per Common Share for total gross proceeds of $57.9 million. The syndicate of underwriters was led by Peters & Co. Limited and included Global Hunter Securities, LLC (which offered the Common Shares only in the United States on a private placement basis), Cormark Securities Inc. and Canaccord Genuity Corp.

Xtreme Coil will use the net proceeds of the bought deal offering initially to reduce indebtedness and, thereafter, to partially fund an increased 2011/2012 capital expenditures program, including the construction of a minimum of two additional XDR 500 drilling rigs, as well as to provide working capital for general corporate purposes.

About Xtreme Coil

Xtreme Coil owns and operates a fleet of proprietary, dual-purpose deep capacity drilling rigs featuring the Company's patented COTD® designs. These rigs offer oil and gas companies outstanding performance and efficiency through leading-edge technology for both conventional and coil drilling. Currently, 14 rigs are located in the United States, with drilling operations in Colorado, North Dakota, Texas, Wyoming and Mississippi. Two deep coil service rigs are conducting re-entry horizontal drilling operations in Saudi Arabia. Xtreme Coil is expanding deep coil well servicing operations and has six units undergoing technical upgrades with expected deployment beginning during 2011 fourth quarter. Xtreme Coil's common shares trade on the Toronto Stock Exchange under the symbol "XDC."

Reader Advisory

This news release contains forwarding looking statements. More particularly, this news release contains statements concerning the anticipated use of the net proceeds of the offering. 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 intended use of the net proceeds of the offering by the Company might change if the board of directors of the Company determines that it would be in the best interests of the Company to deploy the proceeds for some other purpose.

The forward looking statements contained in this news 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.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.