CALGARY, ALBERTA--(Marketwired - March 12, 2015) - Xtreme Drilling and Coil Services Corp. ("Xtreme", the "Company") (TSX:XDC) announce fourth quarter and full year 2014 financial and operating results. It is anticipated that filing will take place on SEDAR of audited Consolidated Financial Statements and Notes to the audited Consolidated Financial Statements and Management's Discussion and Analysis for the twelve months ended December 31, 2014, by Friday, March 13, 2015.

2014 Highlights

(amounts in thousands of Canadian dollars, unless otherwise noted)

  • Adjusted EBITDA of $18.6 million in the fourth quarter of 2014, an increase of two percent over the prior quarter. For the year ended December 31, 2014, adjusted EBITDA increased four percent to $77.0 million as compared to $73.7 million for the prior year.
  • Revenue of $69.5 million in the fourth quarter of 2014, an increase of five percent over the previous quarter. For the year ended December 31, 2014, the Company recognized revenue of $267.4 million, an increase of 16%, or $37.6 million from 2013. The increase in revenue for the year was primarily a function of increased utilization across segments and higher revenue per day in the Coil Services Segment. Specifically, Revenue per operating day increased by 16% to $53,176 and total revenue increased by 48% to $83.7 million in the segment. In addition, total operating days across the Company increased to 8,135 as compared to 8,063 in 2013.
  • For the fourth quarter, the Drilling Segment achieved utilization of 86% on 1,645 operating days. This was comprised of an 86% utilization rate for the 16 rig US XDR fleet, 75% for the three rig Canadian XDR fleet and 100% for the two rigs operating in India. For the year ended 2014, the Drilling Segment achieved utilization of 86% on 6,613 days. This was comprised of a 92% utilization rate for the 16 rig US XDR fleet, 67% for the three rig Canadian XDR fleet. The two XDR rigs that operate in India achieved a 52% utilization for the year which is inclusive of the time they were idled for upgrades and transport to India.
  • For the fourth quarter, the Coil Services Segment achieved utilization of 76% on 409 operating days. This was comprised of a 100% utilization rate for the two XSR units in Saudi Arabia and a 79% utilization rate for the five actively marketed XSR units in the US. Included in the Coil Services utilization is one additional unit that is currently idle in the US, but is actively being marketed internationally. The US XSR units for the quarter averaged 18 to 20 operating days per month on each unit. For the year ended 2014, the Coil Services Segment achieved utilization of 74% on 1,522 operating days. This was comprised of a 98% utilization rate in for the two XSR units in Saudi Arabia and a 75% utilization rate for the five actively marketed XSR units in the US, the fifth unit commenced operations in December 2014.
  • The Drilling Segment (which includes US, Canada and India) operating profit decreased to $58.5 million in 2014 as compared to $64.4 million the previous year. This was driven primarily by marginally lower pricing in the US division as well as higher operating expenses related to rig maintenance, support personnel and India start-up costs. Overall operating margin decreased to of 31.8% in the Drilling Segment as compared to 37.2% in 2013.
  • The Coil Services Segment (which includes US and Saudi Arabia) operating profit increased to $34.8 million in 2014 as compared to $20.6 million in the previous year. This was driven by the US division which had higher demand and pricing and the Saudi Arabia division which increased profitability on higher pricing in 2014. Overall operating margin as a percent of revenue increased to 41.5% in 2014 from 36.3% in 2013.
  • During the fourth quarter of 2014, and in light of the current economic environment, the Company performed a review of certain assets and components for property and equipment not currently in use. As a result of the review, some of the components were transferred to spare drilling and service equipment and depreciation expense was accelerated. This resulted in additional depreciation expense of $2.3 million for the fourth quarter. The effect of the change in accounting estimate on future periods is expected to be approximately $2.5 million in additional depreciation each year until the assets are fully depreciated.
  • The Company finished 2014 with $128.6 million in total debt and $115.5 million in net debt (total debt less cash). The funded debt to EBITDA ratio was 1.7x and the net debt to EBITDA fell to 1.5x. This represents an improvement from 1.8x and 1.6x respectively at year end 2013. At year end, the Company had significant liquidity with approximately $44 million available on the revolving credit facility and $34.7 million in working capital which includes $13.1 million of cash. On a US Dollar basis, in which the Company primarily borrows, the funded debt decreased $10 million USD to an ending balance of $111.7 million USD.
  • Total capital expenditures were $65.3 million, or $64.1 million net of dispositions, during 2014. This is up from total capital expenditures of $23.1 million in 2013. The increase is attributable to the upgrade of two XDR 300 rigs that commenced operations in India, increased spending on XDR maintenance capital as well as the XSR coiled tubing new build program.

2015 Outlook

  • In response to the decrease in drilling and coil service activity, the Company has decreased the capital budget to approximately $21 million in 2015. The current budget includes all maintenance, critical spare and upgrade capital for the existing fleet as well as the final requirements to complete the remaining two XSR new build units. The sixth US XSR unit commenced operations in the Eagle Ford of South Texas in February. It is anticipated that one additional unit will be deployed in April of 2015. In addition, the Company will have substantially completed one additional XSR new build unit inside the current capital budget and will have the option to complete and deploy the unit at minimal incremental capital cost. Xtreme anticipates that 2015 capital expenditures will be funded exclusively through operating cash flow.
  • The Company currently has approximately 3,700 days in contract backlog for the remainder of 2015 across the XDR and international XSR businesses. Although Xtreme has not been immune to the recent slowdown in industry activity it is anticipated that these remaining contracted days provide revenue transparency for the year. At year end the Company had 19 of 21 XDR rigs operating and seven of eight XSR units operating. Currently the Company has 13 of 21 XDR rigs operating and anticipates one additional rig going idle towards the end of the first quarter.
  • Xtreme began to take action in January to mitigate the effect of the pending slowdown in activity. Through the first quarter the Company will reduce indirect and corporate personnel by approximately 25%. As part of the headcount reduction, severance charges of approximately $800 thousand will be recognized in the first quarter of 2015. Xtreme will review opportunities to increase efficiency with its existing resources and continuously evaluate its operating and support functions in order to reduce costs and optimize returns.
Selected Quarterly Financial Information
Three months ended Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Revenue 69,459 65,980 62,299 69,703
Adjusted EBITDA 18,617 18,299 19,421 20,635
Adjusted EBITDA as a percentage of Revenue 27 28 31 30
Adjusted EBITDA per share - basic ($) 0.23 0.22 0.24 0.25
Net (loss) income (2,258) 853 (902) 2,896
Net (loss) income per share - basic ($) (0.03) 0.01 (0.01) 0.04
Capital assets 455,281 443,304 413,296 423,204
Total assets 547,958 536,713 513,651 532,116
Net debt 115,520 116,768 105,358 125,389
Operating days 2,053 2,173 1,779 2,130
Utilization (percentage) - XDR 86 92 75 90
Utilization (percentage) - XSR 71 73 68 78
Utilization (percentage) - Total 83 88 73 88
Weighted average rigs in service 28.0 28.0 28.0 28.0
Total rigs, end of quarter 29 28 28 28
Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Revenue 62,681 59,692 53,268 54,182
Adjusted EBITDA 19,734 17,783 16,847 19,234
Adjusted EBITDA as a percentage of Revenue 31 30 32 35
Adjusted EBITDA per share - basic ($) 0.24 0.22 0.21 0.24
Net income (loss) (7,441) 3,281 240 4,487
Net income (loss) per share - basic ($) (0.09) 0.04 0.00 0.06
Capital assets 412,523 416,887 431,294 417,431
Total assets 515,720 504,728 520,326 508,823
Net debt 116,856 110,326 127,977 130,014
Operating days 2,141 2,062 1,911 1,949
Utilization (percentage) - XDR 93 90 85 89
Utilization (percentage) - XSR 76 76 65 60
Utilization (percentage) - Total 90 87 81 83
Weighted average rigs in service 28.0 28.0 28.0 28.0
Total rigs, end of quarter 28 28 28 28

Excerpt from Management's Discussion and Analysis
for the twelve months ended December 31, 2014


Xtreme maintained its growth trajectory in 2014 by achieving record levels of annual utilization, revenue and EBITDA on a similar asset base to 2013. In both the XDR Drilling segment and the XSR Coil Services Segment, the Company continued to deliver operational excellence while broadening its geographic footprint by commencing operations in India.

Falling oil prices began to significantly affect the industry on a global scale in the fourth quarter of 2014, and our XDR drilling business was not immune. Utilization dipped to 86% in the United States and 75% in Canada in the fourth quarter as compared to 96% for both in the prior quarter. While the oil price slump is expected to continue in 2015, Xtreme is well positioned to weather the downturn thanks to our fleet's technological advantages and financial stability. Although the Company is not fully insulated from the decreasing utilization and price erosion it is mitigated based on approximately 3,700 days of contract backlog operating days through the remainder of 2015.

In 2014 the Company focused on strengthening the balance sheet by using free cash flow to pay down a net $11.7 million (or net $10 million USD) in debt last year. In addition, operating cash flow funded the $65.3 million capital budget for 2014. We generated EBITDA of $77.1 million and ended the year with $115.5 million (or $100 million USD) in net debt on $552.3 million in assets. This manageable debt level coupled with ample liquidity between cash, revolver availability and expected free cash flow highlights Xtreme's financial strength and ability to weather a softer market in 2015.

XSR Segment
With the industry's highest-specification coiled tubing units, we enable cost-conscious operators to complete wells more quickly and efficiently, in turn lowering their overall completion expense. As a result, we have gained market share in the Eagle Ford Shale in South Texas and successfully expanded into the Permian Basin in West Texas. The XSR business was unaffected by the oil price drop at year-end, and in fact enjoyed its busiest and most profitable month ever in December. This trend continued during the first two months of 2015, "We offer oil and gas operators a package no other coiled tubing company can provide. Xtreme operates the largest, most advanced coiled tubing units in North America, delivering extended reach, increased efficiency and improved well productivity for our customers," Chief Executive Officer Tom Wood noted. "To date, the highlight of our consistently superior performance has been reaching a total measured depth of nearly 21,000 feet, with a lateral over 10,000 feet and more than 40 frac stages. In addition, on shorter lateral wells we have been able to cut the operation time by as much as 65% when compared to 2" coiled tubing units. On top of the superior performance we have completed 54 million round trip running feet with only two lost in hole events."

Demand for our completion services once again outstripped our capacity in 2014. During the year, we continued to grow our XSR fleet in response, and in order to execute our strategic plan to expand into new markets. Our capital budget initially included $65 million for eight new XSR units. However, due to a slowdown in market activity the Company has deferred the build of five units until a later date. We retain the option to resume the build process based on market demand. The current plan includes one unit delivered in December of 2014 another in February of 2015 and a final unit to be delivered in April of 2015. In the fourth quarter of 2014 the Company had approximately $300 thousand in operating expenses related to commissioning, crew training and start-up of the new build units.

Completion activity will continue to decrease with the rig count in 2015 along with announcements that certain operators will defer some completions on new wells. Based on this, a focal point for our 2015 expansion in XSR will be to broaden the scope of services. This will include re-entry and re-stimulation projects in the United States and other types of well intervention work. We have developed the expertise to perform re-entry coiled tubing drilling through our project in Saudi Arabia.

The successful work in Saudi Arabia entered its fifth year in 2014. The unique application of coiled tubing technology continues to deliver outstanding performance for our customer. In 2014 Xtreme once again drilled more lateral footage than was forecast for the year. Management continues to leverage the past performance by looking for opportunities to expand in the region. Although we were hopeful to add an additional XSR unit in 2015 it now appears the operator is looking at potentially adding a unit in early 2016.

XDR Segment
In 2014, operating days for our XDR Drilling segment remained in line with 2013, yet the fleet was among the United States' most productive according to RigData statistics. Most impressively, Company analysis of drilling information from RigData indicates that Xtreme was ranked #1 in drilling intensity in the United States with the highest average monthly footage drilled per marketed rig in 2014. Xtreme continued to set performance records in our core drilling areas: the Niobrara Shale in Colorado and Wyoming, and the Bakken Shale in North Dakota where two XDR rigs drilled pace setter wells in 2014.

In 2014 Xtreme allocated approximately $25 million of last year's capital budget to sustaining capital in order to keep the fleet operating optimally as well as perform upgrades to enhance marketability. In 2015 the Company anticipates sustaining capital expenses of approximately $7 million.

Another highlight was the expansion into India, where we partnered with a new customer seeking to improve its efficiency and overall drilling program. Two XDR 300 rigs were deployed and began operating in July after receiving upgrades and modifications for the project. The rigs commenced operations in July and August respectively and have worked at high utilization levels since. The Company will continue to aggressively pursue opportunities for international expansion, with a focus on the markets in which we currently operate. "Our XDR 300s are an excellent match for the India market, where wells are slightly shallower but operators still demand the performance of a Tier 1 rig." Chief Executive Officer Tom Wood commented. "Similarly, our XDR 400 and 500 rigs are ideal for the deep horizontal drilling that dominates the Bakken and Niobrara, thanks to advantages like AC electric power and the fastest moving 1,500 horsepower rigs between multi well pads."

In the fourth quarter and first two months of 2015 Xtreme has maintained relatively strong utilization. However, the Company anticipates drilling weakness to accelerate throughout the first half of the year. At December 31, 2014 Xtreme had 14 of 16 XDR rigs operating in the United States. Currently, the Company has 11 of 16 rigs operating and anticipates one additional rig finishing operations by March 31. Canada began to show weakness in the fourth quarter and this accelerated in January. We do not anticipate any rigs operating in Canada during the second quarter of 2015 due to Spring break up.

As the industry continues to feel the effects of the drop in oil prices, Xtreme has three key advantages that position the Company to weather these difficult market conditions: A technologically advanced new-generation fleet, management experienced in navigating oil and gas downturns and a strong balance sheet. The United States rig count is now down 60% from the end of the third quarter with rigs being idled indiscriminately industry-wide. Going forward we expect older and less advanced equipment to be retired as market forces make Tier 1 rigs more affordable to operators.

The XSR division has gained market share even in the current climate, and should continue to strengthen its foothold in the marketplace. In addition to completing wells, we anticipate opportunities to expand our coiled tubing offering to include re-fracturing and other service work. Operators will need these services as they seek to extend the lives of existing wells in the Eagle Ford, and Xtreme can offer them a reach up to 23,000 feet with 2 5/8" coiled tubing and up to 20,000 feet with 2 7/8" coiled tubing.

The Company is proactively managing costs and has already made reductions in areas including operations support, administrative personnel and capital investment as we work to operate well within cash flow in 2015. Indirect and G&A personnel overhead has been decreased by 25% in January and February and the Company anticipates that these cost savings will be realized beginning in the second quarter. The Company will recognize severance and related expense of approximately $800 thousand in the first quarter of 2015.

Overall, Xtreme's leadership team has managed through both upswings and down markets. We understand how to manage a business through challenging commodity prices and are committed to delivering innovation and efficiency to customers and value to shareholders in all types of markets.

Conference Call Details

Xtreme has scheduled a conference call to discuss results with investors, analysts, and stakeholders on Friday, March 13, 2015, beginning promptly at 10:00 am MT (11:00 am CT, 12:00 pm ET).

Tom Wood, Chief Executive Officer, will host the conference call with participation from Matt Porter, Chief Financial Officer.

Conference operator dial‐in numbers

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

+1 800-355-4959 (North America Toll‐Free) or 1 416-340-2216 (Alternate)

Webcast link:

An audio replay of the call will be available until Friday, March 20, 2015. To access the replay, call +1 800‐408‐3053 or +1 905‐694‐9451 and enter pass code 2268273.

Xtreme Drilling and Coil Services Corp.
Consolidated Statements of Financial Position
At December 31, 2014 and December 31, 2013
(in thousands of Canadian dollars)
Dec 31, 2014 Dec 31, 2013
Current assets
Cash and cash equivalents 13,102 12,220
Accounts receivable 51,125 60,084
Other receivables 255 1,306
Prepaid expenses and other 1,998 2,491
Income tax recoverable - 462
Inventory 11,405 8,181
77,885 84,744
Non-current assets
Deferred tax asset 13,486 14,536
Property and equipment 452,974 412,523
Intangible assets 3,613 3,917
Total Assets 547,948 515,720
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities 39,738 28,051
Fair value of non-controlling interest liability - 12,763
Income tax payable 1,365 -
Current portion of provisions 1,740 -
Current portion of long-term debt - 669
42,843 41,483
Long-term liabilities
Fair value of non-controlling interest liability - 1,596
Long-term debt 128,622 128,407
Total Liabilities 171,465 171,486
Shareholders' equity
Share capital 330,964 328,416
Share option reserve 14,803 12,419
Accumulated deficit (12,487) (12,697)
Foreign currency translation reserve 43,213 15,143
Total Equity 376,493 343,281
Non-controlling interest - 953
Total Shareholders' Equity 376,493 344,234
Total Liabilities and Shareholders' Equity 547,948 515,720
Xtreme Drilling and Coil Services Corp.
Consolidated Statements of Income
For the years ended December 31, 2014 and 2013
(in thousands of Canadian dollars, except share and per share data)
2014 2013
Revenue 267,441 229,823
Operating expenses 174,201 144,873
General and administrative expenses 16,268 11,280
Depreciation of property and equipment 56,159 51,192
Amortization of intangibles 304 303
Stock-based compensation 3,053 1,321
Foreign exchange loss 262 6,494
Loss (gain) on disposal of equipment 4,399 (132)
Change in value of non-controlling interest liability - 1,481
Impairment of accounts receivable - 72
Other expense 21 153
Interest expense 4,572 7,866
Income before tax for the year 8,203 4,920
Tax expense
Current 6,752 3,870
Deferred 862 483
Total tax expense 7,614 4,353
Net income for the year 589 567
Net income (loss) for the year attributable to:
Owners of the parent 589 (327)
Non-controlling interest - 894
589 567
Net income (loss) per common share attributable to equity owners of the parent
- basic 0.01 (0.00)
- diluted 0.01 (0.00)
Weighted average number of common shares
81,575,887 80,935,473
82,347,343 80,935,473
Xtreme Drilling and Coil Services Corp.
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2014 and 2013
(in thousands of Canadian dollars)
2014 2013
Net income for the year 589 567
Other comprehensive income
Items may be subsequently reclassified to profit or loss
Unrealized gain on translating financial statements of foreign operations 28,070 26,751
Dividends declared to non-controlling interest partner (1,332) -
Comprehensive income for the year 27,327 27,318
Xtreme Drilling and Coil Services Corp.
Consolidated Statements of Changes in Equity
For the years ended December 31, 2014 and 2013
(in thousands of Canadian dollars)
Equity attributable to the owners of the parent
Total Non-
Balance at Jan 1, 2013 327,197 11,572 (12,370) (11,314) 315,085 2,922 318,007
Net (loss) income for the year - - (327) - (327) 894 567
Other comprehensive income
Currency translation differences - - - 26,457 26,457 294 26,751
Total comprehensive income (loss) - - (327) 26,457 26,130 1,188 27,318
Employee share option scheme:
Dividends paid to non-controlling interest holder - - - - - (3,157) (3,157)
Value of employees services 478 1,325 - - 1,803 - 1,803
Proceeds from shares issued 741 (478) - - 263 - 263
Total transactions with owners 1,219 847 - - 2,066 (3,157) (1,091)
Balance at Dec 31, 2013 328,416 12,419 (12,697) 15,143 343,281 953 344,234
Balance at Jan 1, 2014 328,416 12,419 (12,697) 15,143 343,281 953 344,234
Net income for the year - - 589 - 589 - 589
Other comprehensive income
Currency translation differences - - - 28,070 28,070 - 28,070
Dividends declared - - - - - (1,332) (1,332)
Settlement of purchase - - (379) - (379) 379 -
Total comprehensive income (loss) - - 210 28,070 28,280 (953) 27,327
Employee share option scheme:
Value of employee services 684 3,068 - - 3,752 - 3,752
Proceeds from shares issued 1,864 (684) - - 1,180 - 1,180
Total transactions with owners 2,548 2,384 - - 4,932 - 4,932
Balance at Dec 31, 2014 330,964 14,803 (12,487) 43,213 376,493 - 376,493
Xtreme Drilling and Coil Services Corp.
Consolidated Statements of Cash Flows
For the years ended December 31, 2014 and 2013
(in thousands of Canadian dollars)
2014 2013
Cash flow provided by:
Operating activities
Net income for the year 589 567
Items not affecting cash:
Depreciation and amortization 56,462 51,495
Stock-based compensation 3,053 1,321
Unrealized foreign exchange loss 262 6,494
Loss (gain) on disposal of equipment 4,399 (132)
Provisions for doubtful accounts (110) -
Change in fair value of non-controlling interest liability - 1,481
Impairment on accounts receivable - 72
Interest expense 4,572 7,866
Interest paid (3,586) (7,656)
Amortization of debt issuance costs 458 1,380
Current tax expense 6,752 3,870
Deferred tax expense 862 483
Taxes paid (4,749) (217)
Changes in items of working capital 15,889 (7,872)
Net cash generated from operating activities 84,853 59,152
Financing activities
Proceeds from exercise of stock options 1,864 741
Proceeds from long-term debt 6,961 142,144
Repayment of long-term debt (18,647) (158,609)
Repayment of operating facility - (7,834)
Dividends paid to non-controlling interest partner - (1,276)
Debt issuance cost (125) (1,247)
Net cash used in financing activities (9,947) (26,081)
Investing activities
Proceeds from sale of equipment 1,242 569
Capital expenditures (65,255) (23,059)
Buyout of non-controlling interest partner (13,263) -
Changes in items of working capital relating to capital items 6,175 2,750
Net cash used in investing activities (71,101) (19,740)
Effect of exchange rate changes on cash and cash equivalents (2,923) (7,032)
Increase in cash and cash equivalents 882 6,299
Cash and cash equivalents - beginning of year 12,220 5,921
Cash and cash equivalents - end of year 13,102 12,220
Xtreme Drilling and Coil Services Corp.
EBITDA and Adjusted EBITDA
For the years ended December 31, 2014 and 2013
(in thousands of Canadian dollars)
2014 2013
Net income 589 567
Tax expense 7,614 4,353
Interest expense 4,572 7,866
Amortization of intangibles 304 303
Depreciation of property and equipment 56,158 51,192
EBITDA 69,237 64,281
2014 2013
EBITDA 69,234 64,281
Adjustments for non-cash and one-time gains and losses 7,734 9,317
Adjusted EBITDA 76,972 73,598
Adjusted EBITDA per share ($) 0.97 0.91
Net (loss) income per share ($) 0.07 0.01
Adjusted EBITDA attributable to:
Owners of the parent 76,972 72,704
Non-controlling interest - 894
76,972 73,598
2014 2013
Stock-based compensation 3,053 1,321
Loss (gain) on disposal of equipment 4,399 (132)
Foreign exchange loss 262 6,494
Change in fair value of non-controlling interest liability - 1,481
Other expense 21 153
7,735 9,317

Reader Advisory

This news release contains forward-looking statements ("FLS"). The use of the words "may", "believe", "could", "would", "might", "will be taken", "occur" or "be achieved" and similar expressions identify FLS. More particularly, this news release contains statements that may relate to contracting, marketing, financing, construction, modifications, deployment, operation, utilization of drilling rigs 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 the Company's business.

These statements are based on certain factors and assumptions including, but not limited to: the assessment of current and projected future operations; ongoing and future strategic business alliances, negotiations and opportunities to enter new, extend or complete existing contracts; the availability and cost of financing; foreign currency exchange rates; timing and magnitude of capital expenditures; expenses and other variables affecting rig operation, modification and construction; the ability and commitment of vendors to provide rig component equipment, services and supplies, including labor, in a cost-effective and timely manner; the issuance of applied-for patents; changes in tax rates; and government regulations. Although Xtreme considers the assumptions used to prepare this news release reasonable, based on information available to management as of March 12, 2015, ultimately the assumptions may prove to be incorrect.

Forward-looking statements are also subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from management's current expectations. These factors include, but are not limited to: the cyclical nature of drilling market demand, foreign currency exchange rates, and commodity prices; access to credit and to equity markets; the availability of qualified personnel; vendor-provided rig components; and, competition for customers.

Management's assumptions considered the following: compliance with the terms of the Company's current and proposed new credit facility; ongoing access to key supplies and components required to continue operating and maintaining equipment, including fuel; continued successful performance of drilling and related equipment; expectations regarding gross margin; recruitment and retention of qualified personnel; continuation or extension of existing long-term or multi-well contracts; revenue expectations related to shorter-term drilling opportunities; willingness and ability of customers to remit amounts owing to Xtreme in accordance with normal industry practices; and management of accounts receivable in direct relation to revenue generation.

In preparing this news release, management considered the following risk factors: fluctuations in crude oil and natural gas prices, supply and demand; fluctuation in foreign currency exchange and interest rates; financial stability of Xtreme's customers; current and future applications for Xtreme's proprietary technology; competition from other drilling contractors; regulatory and economic conditions in regions where Xtreme operates; environmental constraints; changes to government legislation; international trade barriers or restrictions; and, where appropriate, global political and military events.

Financial outlook information contained in this news release about prospective results of operations, financial position or cash provided by operating activities is based on assumptions about future events, including economic conditions and proposed courses of action, and on management's assessment of relevant information currently available. Readers are cautioned such financial outlook information contained in this news release is not appropriate for purposes other than for which it is disclosed here. Readers should not place undue importance on FLS 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, or to explain any material difference between subsequent actual events and such FLS.

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, Saudi Arabia and India. For more information about the Company, please visit

Contact Information:

Xtreme Drilling and Coil Services Corp.
Matt Porter, Chief Financial Officer
tel: +1 281 994 4600
9805 Katy Freeway, Suite 650, Houston, TX 77024