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Xtreme Drilling and Coil Services Announces Sale of XSR Unit and New Long Term Contract in Colorado

CALGARY, ALBERTA -- (Marketwire) -- 12/04/12 -- Xtreme Drilling and Coil Services (TSX:XDC) has entered into a purchase and sale agreement to sell one of its new build ultra-deep XSR units. The purchasing company will operate the unit in a Middle East country outside of Xtreme's core operating area of Saudi Arabia. The sales price is $9.8 million which includes an XSR rig and ancillary equipment. The company anticipates closing the transaction on or before December 31. The primary use of proceeds will be to reduce corporate indebtedness.

In addition, Xtreme recently entered into a long term contract for an XDR 500 rig to drill Niobrara wells in Colorado with an existing customer. The rig is currently being mobilized from a recently completed contract in North Dakota and it is anticipated that operations will begin in early January. This will bring the total number of XDR rigs operating in Colorado to ten. Total contracted days for the US based XDR drilling fleet now stands at more than 5,800 days for 2013 which represents 89% of the available operating days for the year.

Reader Advisory

This press release contains forwarding looking statements. More particularly, this press release contains statements concerning the anticipated use of the net proceeds of the sale of equipment. 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 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 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 Coil

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

Xtreme Drilling and Coil Services Corp.
Matt Porter
Chief Financial Officer
+1 281 994 4604

Xtreme Drilling and Coil Services Corp.
16285 Park Ten Place, Suite 650
Houston, TX 77084

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