|By Marketwired .||
|July 24, 2014 05:52 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 07/24/14 -- Xtreme Drilling and Coil Services ("Xtreme", the "Company") (TSX:XDC) is pleased to provide a second quarter operations update along with an announcement of the date for the Q2 2014 earnings release and conference call.
Second Quarter Update
For the second quarter of 2014, Xtreme had total operating days of 1,932 which resulted in a utilization rate of 80% for the fleet of 21 XDR drilling rigs and 7 XSR coiled tubing units.
The Drilling Segment achieved utilization of 83% on 1,585 operating days. This was comprised of a 95% utilization rate for the 16 rig United States XDR fleet and 12% for the three rig Canadian XDR fleet. During the second quarter the Company mobilized two XDR 300 rigs to India. This decreased the US drilling fleet from 18 to 16 XDR rigs. The two India rigs had utilization of 100% for the quarter as they earned a standby rate during preparation and mobilization to India.
Overall, the US XDR rigs had 16 more operating days as compared to the previous quarter. In Canada, operating days were down 172 days from the first quarter of 2014 as the normal seasonal road bans were in effect for most of the quarter. The Company's three Canadian drilling rigs operated for 32 days in the second quarter.
For the quarter, the Coil Services Segment achieved utilization of 68% on 346 operating days. This was comprised of a 99% utilization rate for the two XSR units in Saudi Arabia and a 63% utilization rate for the four actively marketed XSR units in the US. As previously announced, the Company had an incident with one of the US XSR units in early April which resulted in it being idle for the entire quarter. As a result, the US XSR division had a total of 165 operating days or 44 fewer than the first quarter. However, operating days on the three operating XSR units remained strong as utilization was 85% for the period. The Company anticipates that as the fourth XSR unit comes back on line in July, demand will remain strong for the second half of the year.
At quarter end 21 XDR rigs were earning revenue and five XSR units were operating, three in the US and two in Saudi Arabia. The fourth US XSR unit went back to work in mid-July immediately after repairs were completed.
Second Quarter Results and Conference Call
The Company expects to announce second quarter 2014 financial and operating results after market close on Thursday, August 7, 2014 with a follow-up conference call planned for Friday, August 8, 2014 at 10:00 am MDT, 11:00 am CT. 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:
+1 866-225-0198 (North America Toll-Free) or +1 416-340-2216 (Alternate)
Webcast link: http://www.gowebcasting.com/5630
An audio replay of the call will be available until Friday, August 15, 2014. To access the replay, call +1 800-408-3053 or +1 905-694-9451 and enter pass code 4791073.
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 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.