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


Symbol Price Change
XDC.TO 1.30 0.05

CALGARY, ALBERTA--(Marketwire - Dec. 4, 2012) - Xtreme Drilling and Coil Services (XDC.TO) 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.