Xtreme Coil Announces $30 Million Bought Deal Financing

    THE U.S./

    CALGARY, June 10 /CNW/ - (TSX-XDC) - Xtreme Coil Drilling Corp. ("Xtreme
Coil", the "Company") announced that it has entered into an agreement with a
syndicate of underwriters led by Peters & Co. Limited, and including National
Bank Financial Inc. (the "Underwriters"), pursuant to which the Underwriters
have agreed to purchase, on a bought deal basis, 7,700,000 common shares
("Common Shares") of Xtreme Coil at a price of $3.90 per Common Share for
aggregate gross proceeds of $30,030,000. The Underwriters will have the option
to purchase up to an additional 15 percent of the total issue of Common
Shares, exercisable in whole or in part at the sole discretion of the
Underwriters 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 $34,534,500. The Common
Shares will be offered in British Columbia, Alberta, Saskatchewan, Manitoba
and Ontario by way of a short form prospectus and in the U.S. on a private
placement basis pursuant to exemptions from registration requirements.
    The Company may, on a private placement basis, offer up to 750,000 Common
Shares at a price of $3.90 per Common Share to certain directors, officers and
employees of the Company.
    Proceeds will be used to reduce indebtedness, fund ongoing capital
expenditures and for general corporate purposes. Closing is expected to occur
on or about June 29, 2009 and is subject to certain customary conditions
including, but not limited to, the receipt of all necessary approvals
including the approval of the Toronto Stock Exchange ("TSX").

    Corporate Profile

    Xtreme Coil develops and applies leading edge patented and patent-pending
technology and designs to build, transport, and operate new Coil Over Top
Drive(R) ("COTD(TM)") drilling rigs. Currently contracted in the United States
and Mexico and marketed to other international regions, Xtreme Coil's
innovative, dual-purpose and efficient rigs drill with larger coil to reach
hydrocarbons in deeper horizons. Xtreme Coil's proprietary technology also
features modular transportation issues, larger coil injectors and new methods
for achieving deeper, faster and safer drilling. Xtreme Coil's common shares
trade on the TSX under the symbol "XDC".

    Reader Advisory

    This news release contains forward looking statements. More particularly,
this press release contains statements concerning the anticipated closing date
of the offering, the anticipated private placement and the anticipated use of
the proceeds. Although Xtreme Coil believes that the expectations reflected in
these forward looking statements are reasonable, undue reliance should not be
placed on them because Xtreme Coil 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 closing of the offering and/or the private placement could
be delayed if the Company is not able to obtain the necessary regulatory and
stock exchange approvals on the timelines it has planned. The offering or the
private placement, as the case may be, will not be completed at all if these
approvals are not obtained or some other condition to closing is not
satisfied. Accordingly, there is a risk that the offering, or the private
placement, will not be completed within the anticipated time or at all. The
intended use of the proceeds by Xtreme Coil might change if the board of
directors of the Company determine that it would be in the best interests of
the Company to deploy the proceeds for some other purpose.

    The securities offered have not been and will not be registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful.

    The Toronto Stock Exchange has neither approved nor disapproved the
    contents of this press release.

For further information:

For further information: Tom Wood, Executive Chairman, Xtreme Coil
Drilling Corp., 1402, 500 Fourth Avenue SW, Calgary, Alberta, T2P 2V6; Rod
Uchytil, President and Chief Executive Officer, tel: (403) 262-9500, fax:
(403) 262-9522, email: ir@xtremecoil.com; www.xtremecoildrilling.com

Organization Profile

Xtreme Drilling and Coil Services Corp.

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