UPDATE 2-Xtreme Coil raises offering by C$10 mln, shares fall

* Now offers 10.3 mln shrs at C$3.90 apiece

* Says proceeds to be used for debt repayment

* Shares down 6 pct

(Recasts and adds details of increased bought deal)

June 10 (Reuters) - Xtreme Coil Drilling Corp (XDC.TO) said it increased the size of a financing by C$10 million, just hours after it set plans to raise C$30 million through the bought-deal, sending its shares down 5.7 percent.

The company, which increased the financing to C$40.2 million, said it would use the proceeds to repay debt and fund capital expenditures.

The maker of drilling rigs said the syndicate of underwriters led by Peters & Co Ltd has now agreed to buy 10.3 million common shares at a price of C$3.90 a share.

Earlier, the syndicate had agreed to buy 7.7 million shares from the company.

The underwriters will have the option to purchase up to an additional 15 percent of the shares to cover over-allotments, if any.

The company also said it would privately place up to 750,000 shares with certain directors, officers and employees for the same price.

Shares of the Calgary, Alberta-based company were trading at C$4.01 in the afternoon trade Wednesday on the Toronto Stock Exchange.

($1=1.101 Canadian dollar) (Reporting by Koustav Samanta in Bangalore; Editing by Anil D'Silva, Jarshad Kakkrakandy)