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Xtreme's Eagle Ford Ops Offset Low Bakken Activity in Q2

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Xtreme Drilling and Coil Services has reported a second quarter operations update.

Second Quarter Update

Xtreme had 1,911 total operating days during the second quarter of 2013. This resulted in a utilization rate of 78% for the fleet of 21 XDR drilling rigs and 7 XSR coiled tubing units.

The Drilling Segment achieved utilization of 85% on 1,621 operating days. This is comprised of a 92% utilization rate for the US XDR fleet and 41% for the Canadian XDR rigs. For the quarter, the Coil Services Segment achieved utilization of 53% on 290 operating days. This is comprised of a 99% utilization rate for the two XSR units in Saudi Arabia and a 30% utilization rate for the four available XSR units in the US. The Company actively marketed only two of the four available US XSR units for the majority of the second quarter. The utilization on these two marketed XSR units was 60% for the quarter as compared to 47% in the first quarter. A third XSR unit began operations in the Eagle Ford during the final week of June. As expected, the quarter was down modestly from the first quarter as the Canadian rigs experienced the normal seasonal slowdown. In addition, North Dakota activity was lower in the quarter due to historic wet weather.

Tom Wood, CEO of Xtreme, commented on second quarter activity, "We further solidified our presence in our core markets during the second quarter. In the Eagle Ford, activity increased for our XSR coiled tubing units by 29%. We have now reached depths greater than 20,000 feet with our 2 5/8 inch coiled tubing and have performed more than 8 million running feet without leaving coil in the well. These accomplishments along with our safety record and service quality have differentiated us from our coiled tubing competitors in the Eagle Ford. Our drilling business had the expected seasonality in Canada and to a lesser extent in the Bakken. Nonetheless, we are excited that going into the third quarter we will have five of our seven XSR units operating and 20 of our 21 XDR rigs operating."

At quarter end 20 XDR rigs were working, 17 in the US and three in Canada, and five XSR rigs were operating, three in the US and two in Saudi Arabia. It is anticipated that the company will have its only idle XDR rig begin operations in August. At that point all 21 XDR rigs will be under contract.