Xtreme Coil to build 4 new rigs for drilling in Niobrara

Xtreme Coil Drilling Corp recently won long-term contracts to build and operate four new XDR 500 drilling rigs, with commencement of operations staged throughout 2012. Each rig will operate under a three-year contract, initially in the Niobrara resource play in the Rocky Mountain region of the United States.

Delivery of the first new rig is planned for Q1 2012, followed by one rig delivery in each of the next three quarters. Construction of the first rig is under way.

Including these four new rigs, Xtreme Coil has committed to adding eight XDR 500 drilling rigs to the fleet since the introduction of this model in October 2010. Currently, one rig is operating in the Bakken in North Dakota and one is in the Eagle Ford in Texas. Two previously announced XDR 500 rigs are nearing completion; one is expected to deploy this month and one in Q3 or early Q4 this year.