Xtreme Drilling and Coil Services Corp Announces $15 Million Bought Deal Offering

Xtreme Drilling and Coil Services Corp announced that it has entered into an agreement with Peters & Co. Limited, (the Underwriter), pursuant to which the Underwriter has agreed to purchase, on a bought deal basis, 13,045,000 common shares of Xtreme at a price of $1.15 per Common Share for aggregate gross proceeds of $15,001,750. As part of the offering and as a condition thereof, certain insiders, directors and officers of the Corporation will subscribe for a minimum of $3.0 million and up to a maximum of $5.0 million Common Shares at $1.15 per Common Share. The Underwriter will have the option to purchase up to an additional 15% of the total issue of Common Shares, exercisable in whole or in part at the sole discretion of the Underwriter up to 30 days after the closing date, at the same issue price, to cover over allotments, if any. If such option is exercised in full, the aggregate gross proceeds of the offering will be $17,252,012. The Common Shares will be offered in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario by way of a short form prospectus. Net proceeds of the offering will be used in part or whole to reduce indebtedness and for general corporate purposes.