|By Marketwired .||
|February 25, 2014 07:34 PM EST||
CALGARY, ALBERTA -- (Marketwired) -- 02/25/14 -- Xtreme Drilling and Coil Services Corp. (TSX: XDC) ("Xtreme Drilling", the "Company") is pleased to provide a fourth quarter operations update along with an announcement of the date for the Q4 2013 earnings release and conference call.
Fourth Quarter Update
For the fourth quarter of 2013, Xtreme Drilling had 2,136 total operating days which resulted in a utilization rate of 89% for the fleet of 21 XDR drilling rigs and 7 XSR coiled tubing units.
The Drilling Segment achieved utilization of 93% on 1,796 operating days. This was comprised of a 96% utilization rate for the 18 rig US XDR fleet and 75% for the three rig Canadian XDR fleet. During the fourth quarter the United States XDR drilling division reactivated a rig that had been idle in Wyoming for 18 months. This led to an increase of 70 operating days in the US from the prior quarter. It also marked the first time in the history of the Company that all 18 US based drilling rigs were contracted. In Canada, the Company's three drilling rigs operated for 208 days, which was down eight days from the prior quarter.
For the quarter, the Coil Services Segment achieved utilization of 72% on 340 operating days. This was comprised of a 98% utilization rate for the two XSR units in Saudi Arabia and an 81% utilization rate for the three 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 marketed internationally. The US XSR units for the quarter averaged 18 operating days per month on each unit. It was anticipated that the fourth and final new build XSR unit would commence operations in the fourth quarter. However, due to weather related delays, the unit did not begin operations until January. Similar to last quarter customer demand remains strong in the first quarter as current bookings indicate strong activity for all four of the units.
Beginning in the fourth quarter the Company adjusted the methodology for calculating utilization in the US coil service division. Available operating days is now defined as 22 days per month for each unit as opposed to total calendar days which was utilized in the past. This is based on the fact that on average the units spend five to six days mobilizing between wells and two to three days on preventative maintenance during a month.
In Saudi Arabia, the Company recently closed on the purchase of the 20% interest in the Saudi Arabian joint venture from their partner. Consideration paid at closing was $8.5 million with a maximum of an additional $5 million to be paid over the next 18 months. This earn out is contingent upon the Saudi Arabian operation achieving certain operating and performance metrics. Both units in Saudi Arabia are now under a long term contract which runs through July of 2016.
At the end of the fourth quarter, all 21 XDR rigs were working and five XSR rigs were operating, three in the US and two in Saudi Arabia.
Fourth Quarter Results and Conference Call
The Company expects to announce 2013 full year and fourth quarter financial and operating results after market close on Tuesday, March 4, 2014 with a follow-up conference call planned for Wednesday, March 5, 2014 at 10:00 am MST, 11:00 am CST. 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.
+1 866-226-1798 (North America Toll-Free) or +1 416-340-2220 (Alternate)
Webcast link: http://www.gowebcasting.com/5239
An audio replay of the call will be available until Tuesday, March 12, 2014. To access the replay, call +1 800-408-3053 or +1 905-694-9451 and enter pass code 4828220.
This press release contains forwarding 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.
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 Drilling 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 www.xtremecoil.com.