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
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
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
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
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.
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
FOR FURTHER INFORMATION PLEASE CONTACT:
Xtreme Drilling and Coil Services Corp. Matt PorterChief Financial Officer +1 281 994 4600 email@example.com Source: Xtreme Drilling and Coil Services