Xtreme Announces New Term Drilling Contracts and Second Quarter 2017 Operations Update and Conference Call Information
July 05 2017 - 5:29PM
(TSX:XDC)
-- Xtreme Drilling Corp.
(“
Xtreme”, the “
Company”) is
pleased to provide an update on new drilling contracts and the
second quarter 2017 operations update, along with the dates for the
quarterly earnings release and conference call.
New Term Drilling Contracts
Xtreme recently finalized 18-month term
contracts for the remaining two 850XE drilling rigs. Both rigs will
work for the same customer in the Utica play of the Appalachian
Basin. It is anticipated these two rigs will commence operations in
the mid- and late-fourth quarter of 2017, respectively. The
operator is a leading Utica E&P Company with multiple rigs
under contract and a significant backlog of wells to be
drilled.
Xtreme previously announced the first of three
850XE rigs was contracted to an operator in Oklahoma on a two-year
term contract and should commence operation around September 1,
2017. The incremental revenue from these three 850XE rig contracts
is estimated to be more than $24 million USD in 2018.
In addition, the Company recently finalized new
term contracts on two XDR500 rigs in the DJ Basin of Colorado.
These contracts will extend these two rigs through October 2018 and
January 2019, respectively. In total, the Company now has more than
3,000 operating days under term contract. This is an increase from
approximately 240 days under term contract at the end of the first
quarter of 2017. The remainder of the Company’s active rigs operate
under multi-well or well to well contracts.
Xtreme currently has eight of 10 XDR 500 rigs
operating with the ninth XDR 500 contracted and anticipated to
commence operations by the end of July. The Company also has one
XDR 200 rig currently operating in North Dakota.
Xtreme President and CEO, Matt Porter,
commented, “The three 850XE contracts validate the strategy to
up-grade a portion of our legacy drilling fleet with a new
super-spec rig design and proprietary technology. Our customers
realized the potential to decrease their full-cycle drilling costs
through the 850XE rigs unmatched efficiency and technical
capability. As such, these new contracts were signed at the very
leading edge of current market super-spec day rates and represent a
true win-win as both the customer and Xtreme are able to realize
enhanced economics. It further highlights, that despite the recent
weakness in commodity prices, operators are willing to pay a
premium for demonstrable value added design and technology.”
Second Quarter Operating
Update
For the second quarter of 2017 Xtreme had total
operating days of 691 from its drilling operations. Effective
January 1, 2017, the Company has excluded the three rigs that will
be upgraded to 850XE rigs from its utilization calculation, thus,
reducing the number of rigs and Q2 available days to 18 and 1,638
respectively. For the second quarter of 2017, total utilization for
the available 18-rig fleet was 42%, compared with a utilization
rate of 36% for the prior quarter.
Second Quarter Results and Conference
Call
The Company expects to announce financial and
operating results for the three months ended June 30, 2017 after
market close on Thursday, August 3, 2017, with a follow‐up
conference call planned for Friday, August 4, 2017 at 10:00 a.m.
MT/11:00 a.m. CT. Matt Porter, President and Chief Executive
Officer, and Martin Ramirez, Vice President – Finance and Corporate
Development, will host the conference call and will answer
questions from analysts and investors.
To participate in the conference call, please
dial in approximately ten minutes before the start time in your
time zone.
+1 844-889-6858 (North America
Toll‐Free) or +1 661-378-9711 (International)
Webcast link:
http://edge.media-server.com/m/p/5xqo9ojwsziz3itj
Conference ID: 51154960
An audio replay of the call will be available
until 4:00 pm Thursday, August 10, 2017. To access the replay, call
+1 855-859-2056 or +1 404-537-3406 and enter Passcode 51154960.
Reader Advisory
This press release contains forward-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.
About Xtreme
Xtreme Drilling Corp. (“XDC” on the Toronto
Stock Exchange) designs, builds, and operates a fleet of high
specification drilling rigs under contracts with oil and natural
gas exploration and production companies and integrated oilfield
service providers in Canada and the United States. For more
information about the Company, please visit www.xdccorp.com.
For further information, please contact:
Xtreme Drilling Corp.
Matt Porter
President and Chief Executive Officer
+1 281 994 4600
ir@xdccorp.com
www.xdccorp.com