Corporate Update

November 15, 2011

Forward Looking
CAUTIONARY STATEMENT

Certain information contained in this presentation is forward looking and involves risks forward-looking and uncertainties that could significantly impact expected or prospective results. A discussion of risks and uncertainties is contained under the heading Forward-Looking Statements in the Managements Discussion and A l i sections of Xt St t t i th M t Di i d Analysis ti f Xtreme C il Coils SEDAR filings including, but not limited to, the 2011 Third Interim Quarter MD&A and the 2010 Annual Report. These reports are available at: www.xtremecoil.com

XTREME DRILLING AND COIL SERVICES OVERVIEW

Corporate Snapshot
TICKER: XDC
(Toronto Stock Exchange)

Market Cap: $222 4mm ($3 37 @ 11/11/11) $222.4mm ($3.37 Enterprise Value: $258.1mm 3 Month Average Daily Volume: 54,008 Shares Outstanding: 65.6mm Public Float: 38mm Directors & Management: 11.8% Greater than 10% Shareholders: 30% G %S %

Total Assets: $375.7mm Employees: 481 (@ 11/1/11) p y ) Headquarters: Calgary, Alberta and Houston, Texas Website: www.xtremecoil.com

1. Market Cap as of 11/11/11 and Net Debt as of 9/30/11 2. As of 9/30/11

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OVERVIEW

Xtreme Overview
XTREME DRILLING AND COIL SERVICES IS A TECHNOLOGY FOCUSED PROVIDER OF LAND BASED DRILLING AND WELL SERVICES
We provide new generation drilling rigs as well as large built for purpose coil service rigs. With the continuous focus on improving existing technology in the land drilling and coil services market, Xtreme has developed over 32 patents and proprietary designs for drilling and coil service rigs. Drilling: High specification XDR drilling rigs Operations focused in the Rocky Mountain region with growing presence in the Bakken and Niobrara unconventional shale plays. One of the youngest high specification fleets in the land drilling industry. Ideally suited for unconventional resource plays. Optimized drilling and mobilization efficiencies through AC equipment, integrated skidding packages, small footprint design and minimized craneless loads.

Coil Services: High specification large diameter proprietary XSR coil tubing service rigs Ideally suited for CT cleanouts, re-entry, wellbore extensions, fracturing, production logging, perforating, stimulations and other complex interventions. Rigs are masted, utilize AC 200,000 lbs. injectors, proprietary coil reel trailers and twin 1,000 hp pumps. 5 new service rigs will be deployed over the next 2 quarters. 2 service rigs currently operating under long term contract in Saudi Arabia.

Operations Geographic

Bakken 5 Drilling Rigs* 6 Service Rigs*

Canada 3 Drilling Rigs

Outlook for 2011-2012

AGGRESSIVE IN PROCESS DRILLING AND COIL SERVICE FLEET EXPANSION $65mm capex th $65 through Q1 Q3 2011 with additional $55 h Q1-Q3 ith dditi l $55mm expected i t d in Q4 2011. Current growth and maintenance capex budget of approximately $70mm in 2012. 2012 Increase XDR drilling fleet by 50% from the current 14 rig fleet to 21 rigs by the end of 2012.
Continue to build efficiencies with increased scale and focus in the Williston and Greater DJ basins.

Launch large coil service business with the deployment of 5 XSR 200 series coil service rigs beginning in Q4 2011 through Q1 2012 2012.
Ideally suited for unconventional plays with long lateral reach capabilities.

Investment Overview
XTREME (XDC.T) IS A COMPELLING WILLISTON AND GREATER DJ BASIN FOCUSED DRILLING AND COIL SERVICE COMPANY WITH AN INTERNATIONAL PRESENCE IN THE MIDDLE EAST
Leading Edge Drilling d Coil Technology L di Ed D illi and C il T h l Average fleet age of less than 3.5 years

Rigs are ideally suited for major operators in expanding resource plays due to AC equipment, equipment integrated skidding packages packages, small footprint design and minimized craneless loads

Attractive V l ti Att ti Valuation EV / 2012 EBITDA: 3.5x vs. industry group average of 4.0x

Mkt. Cap / TEV: 0.8x vs. industry group average of 1 3x 1.3x

Strong Growth Profile Operating days estimated to increase by 70% in 2012

Pipeline of attractive IRR projects At inflection point of realizing potential of past engineering and technology R&D

High Margin Coil service business expected to increase operating margin Consensus revenue expected to grow at 88% and consensus EBITDA growth of 194% in 2012

Expanding drilling business has signed contracts that represent expected IRR of 20%+ High margin coil service business expected to produce IRR of 40%+

1. Firstcall consensus EBITDA as of 11/1111 2. Industry group defined as PTEN, PDC, PD, TDG and UDRL 3. TEV as of 9/30/11

Focused operations with leverage to oil and liquids rich plays Anticipated in next 12 months 100% of operating XDR Drilling rigs and 82% of the XSR Coil service rigs in oily Williston Basin or liquids rich Greater DJ Basin of the US and 18% or 2 XSR rigs working on gas plays in the Middle East

DRILLING SERVICES

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Drilling Macro Themes

DEMAND FOR RIGS HIGHLY LEVERED TO TYPE AND SIZE Advent of shale and unconventional d illi h placed greater d Ad t f h l d ti l drilling has l d t demands on rig d i technology Unconventional resource plays now account for 70% and growing of all land drilling Horizontal drilling now 58% of wells being drilled and higher technology and smaller loads is the trend in virtually every play
Land Rig Distribution by Type
50% 40% 30% 20% 10% 0%
1,501-1,999 2,000 > 98% 95% 95% 95% 65% 65%

Expected 12 Month Utilization by Type

DRAWWORKS HP A/C SCR MECHANICAL

601-999 1,000-1,200 1 000-1 200 1,201-1,500

95% 95% 98%

75% 95% 95%

65% 65% 65%

% of US Land Fleet
Source: Global Hunter Securities
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Drilling Segment Overview

XDR FLEET IS AMONG THE YOUNGEST AND MOST TECHNOLOGICALLY ADVANCED IN THE INDUSTRY Average Age of less than 3.5 years on entire fleet 100% of the fleet is AC driven w/Top Drives Current utilization of 80% on 15 rigs 6 New XDR 500 rigs in process w/ term g p contracts
XDR by Type
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RIG Rig 3 Rig 4 Rig 5 Rig 6 Rig 7 Rig 8 Rig 10 Rig 11 Rig 12 Rig 14 Rig 15 Rig 16 Rig 17 Rig 18 Rig 19 RIG TYPE XDR 200 XDR 200 XDR 200 XDR 400 XDR 500 XDR 400 XDR 200 XDR 300 XDR 300 XDR 300 XDR 300 XDR 400 XDR 400 XDR 500 XDR 500 XDR 500 XDR 500 XDR 500 XDR 500 XDR 500 XDR 500 STATUS Prep for CAN Operating Prep for CAN Operating Operating Operating Prep for CAN Operating Operating Operating Operating Operating Operating Operating Operating In Process In Process In Process In Process In Process In Process LOCATION Texas Wyoming Texas Colorado N Dakota Colorado Texas Colorado Colorado Colorado Colorado Colorado N Dakota N Dakota Colorado Colorado N Dakota Colorado Colorado Colorado N Dakota Q1 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q2 2012 12 START DATE

4 3

Rig 20 Rig 21 Rig 22 Rig 23

XDR 200

XDR 300

XDR 400

XDR 500

Rig 24 Rig 25

XDR 500
Craneless 250 ton, two-stage telescopic mast and single piece step-down substructure Compact AC 1500 horsepower drawworks Integrated AC top drive which transports in mast Dual 1 600 horsepower pumps 1,600 Climate controlled drillers cabin w/PLC Joystick controls Automated hydraulic catwalk and iron roughneck for safe, efficient tubular handling Integrated multi-well pad moving system Modular design for rapid deployment Winterized for harsh environments

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XDR 500 Detail

Compact 1500HP AC Drawworks

Climate controlled drillers cabin

Variable frequency drive system

Automated hydraulic catwalk

Integrated AC top drive system

Iron roughneck pipe handling

Integrated multi-well skid system

Craneless modular design

Large capacity 1600HP pumps

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XDR Advantages and Stats

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Coil Services

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Large Coil Macro Themes

ANTICIPATED SUPPLY DEMAND IMBALANCE IN LARGE COIL SERVICE MARKET THROUGH 2012
2011

Large diameter coil units are expected to make up an increasing portion of the major unconventional resource completion and p service activities As drilling continues and wells age in these unconventional resource plays, it is anticipated p y , p that well intervention or service with coil will increase demand over the long term Even with current industry fleet expansion y p taken into account, it is anticipated that demand will outstrip supply into 2013 g Current economics on large coil service units imply returns in excess of 50%
Source: Global Hunter Securities

BAKKEN

EAGLE FORD

HAYNESVILLE

Wells Drilled % to b e Completed Total Completions % of Wells Using CT g Total Wells Using CT Avg. Days per Well Days Required Total Working Days CT Unit Demand Total Demand Total Supply Implied Utilization

2,951 98% 2,892 66% 1,909 7 13,743 250 55 127 76 167%

3,292 98% 3,227 66% 2,130 6 11,712 250 47

1,473 98% 1,443 66% 953 7 6,192 250 25

2012
BAKKEN EAGLE FORD HAYNESVILLE

Wells Drilled % to b e Completed Total Completions % of Wells Using CT Total Wells Using CT Avg. Days per Well Days Required Total Working Days CT Unit Demand Total Demand Current Supply Implied Utilization

4,083 98% 4,001 66% 2,641 8 19,807 250 79 169 124 136%

4,500 98% 4,410 66% 2,910 6 17,171 250 69

1,264 98% 1,239 66% 818 7 5,315 250 21

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XSR Opportunity and Overview

HORIZONTAL WELL LATERALS ARE GETTING LONGER AND NOW ACCOUNT FOR MORE THAN 50% OF THE WELLS BEING DRILLED IN NORTH AMERICA The majority of the industrys coiled tubing units are at their limit and not completing the job. Extended lateral depths require larger more powerful and precise controlled CT larger, equipment such as AC powered injectors. Extended lateral depths require other means of pipe transportation to handle the amount and size of coil required. Our business opportunity has been created by combining management with large diameter coil experience experienced engineering and d i t i d i i d design team proprietary equipment and control systems supportive industry conditions

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XSR Initial Target Market

BAKKEN SHALE Typical Well T i l W ll Vertical Depth = 10,000 12,000 ft. g Lateral Length = 6,500 11,000 ft. Max Measured Depth = 23,000 ft. Plug & Perf Completion Technique 20 44 stages

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XSR 200 Ultra-Deep CT Rig

AC 200,000 lbs. injector capacity (utilizing large diameter coil) PLC based controls that more precisely controls weight on bit, p y g , differential pressure and ROP Ability to control drill/mill Reduced motor stalls

Proprietary double-trailer configuration for transportation of the coil p p g g Truck mounted twin pumping/mixing units Horsepower: 1,200 total Discharge Rate: 4 BPM @ 0 psi Discharge Pressure: 15,000 psi g , p Tank Sizes (3): 40 bbl total capacity

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XSR CT Reel Transport Trailer

XTREMES REEL TRAILER IS THE LARGEST CAPACITY COILED TUBING TRANSPORT TRAILER IN THE WORLD Capable of transporting 23,500 ft. of 2-5/8 coil Complies with road standards in the United States and Canada
COIL TUBING OD (in) CT WALL REEL OD/ID (in) CAPACITY WEIGHT (lb)

2-7/8 2-5/8 2-3/8

0.188 0.188 0.188

180 / 115 180 / 115 180 / 115

21140 23500 25970

114053 114011 114040

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XSR 200 Ultra-Deep CT Rig On Location

AC 200K Injector

75 Mast Control Cabin & VFD BOP Engine Generator Carrier CT Reel Trailer

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XSR Differentiating Technology

MILLING/DRILLING WITH PLC CONTROLLED VARIABLE FREQUENCY DRIVEN AC INJECTORS Increased precision and measurability Computerized electronic driller that more precisely controls weight on bit differential pressure and ROP bit, Ability to control drill Reduced motor stalls

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International Operations
INTERNATIONAL OPERATIONS OFFER UPSIDE POTENTIAL AND GEOGRAPHIC DIVERSIFICATION

Saudi Arabia Two XSR 200 rigs currently operating for major international service company in Saudi Arabia p y Margins are consistent with deep coil North American expectations Provides International opportunity to deploy new XSR 200 coil service rigs

Customer Endorsement Coiled tubing re-entry drilling program reduces drilling time by half; improves production six fold

Source: Baker Hughes; 2011 Investor and Analyst Conference Presentation

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Future Free Option

CURRENTLY DEVELOPING WITH INDUSTRY PARTNER A FIT FOR PURPOSE MINING RIG Mining Joint Venture
Currently in a feasibility testing phase of 50/50 joint venture No capital contribution required under terms of the joint venture Xtreme contributes engineering, d i and operational k Xt t ib t i i design d ti l knowledge l d to the partnership Potential to capture portion of large global metals mining market
ENTERPRISE VALUE (m m ) NUMBER OF RIGS LTM REVENUE PER RIG 1

COMPANY

Ausdrill Ltd. Boart Longyear Limited Capital Drilling Ltd Energold Drilling Corp. FORACO International S A S.A. Geodrill Layne Christensen Co. 2 Major Drilling International Orbit Garant Drilling Inc. Swick Limited

$744.5 $1,913.6 $165.1 $124.5 $214.9 $214 9 $67.0 $565.0 $793.6 $164.2 $111.9

322 965 64 94 176 18 150 536 140 78 2543

$2.0 $1.2 $0.9 $0.4 $0.6 $0 6 $2.7 $1.1 $0.7 $0.8 $1.1

Source: Geodrill Investor Presentation November 2010 1. Industry Average utilization is between 60-70% 2. LTM Revenue is comprised solely of the Mineral Exploration division, as reported in Layne Christensen Co.s financial reports. 25

Financial Overview

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Strong Growth Potential

XTREME IS ON THE VERGE OF REALIZING HIGHER REVENUES AND EBITDA MARGINS BASED ON PAST R&D AND ENGINEERING EXPENDITURES Strong Revenue Growth Potential
Current contract coverage of existing and newbuild rigs provides strong revenue clarity Estimated that available rigs will average 25 in 2012 g g Of these rigs currently 16 or 67% have long term contracts that span into or through 2012

EBITDA Growth of 4x and 50% margin expansion potential

$70 $60 $50 $40 $30 $20 $10 $0 $6.2 $22.9 $22.8

Existing operating leverage coupled with addition of higher margin coil service division provides opportunity for substantial margin expansion In process contracted fleet expansion will drive higher EBITDA
$ $66.5 In millions of $CAD

Q4 11 Q4 12 based on 11/11/11 Firstcall consensus

Revenue

EBITDA

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Q3 Update Rig Contract Status

Term Contract Status (Including Committed New Builds)

18 2 16 Number of Rigs A Already Under Long-Term Contra acts (Estimated Qu uarterly Average e) 14 12 10 8 13 6 4 6 6 2 5 5 5 3 2 1 15 16 16 15 15 15 2 2

14

14 12

XDR

XSR

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Fleet Expansion
AGGRESSIVE CAPEX PROGRAM IS PROJECTED TO INCREASE FLEET BY 75% TO 29 RIGS BY END OF Q4 2012
$50.00 $40.00 $30.00 $20.00 $10.00 $0.00 In millions of $CAD

CAPEX

30 25 20 15 10 5 0

8 3 21 13

Q4 11 Q4 12 based on company estimates

XDR

XSR
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Investment Overview
XTREME (XDC.T) IS A COMPELLING WILLISTON AND GREATER DJ BASIN FOCUSED DRILLING AND COIL SERVICE COMPANY WITH AN INTERNATIONAL PRESENCE IN THE MIDDLE EAST
Leading Edge Drilling d Coil Technology L di Ed D illi and C il T h l Average fleet age of less than 3.5 years

Rigs are ideally suited for major operators in expanding resource plays due to AC equipment, equipment integrated skidding packages packages, small footprint design and minimized craneless loads

Attractive V l ti Att ti Valuation EV / 2012 EBITDA: 3.5x vs. industry group average of 4.0x

Mkt. Cap / TEV: 0.8x vs. industry group average of 1 3x 1.3x

Strong Growth Profile Operating days estimated to increase by 70% in 2012

Pipeline of attractive IRR projects At inflection point of realizing potential of past engineering and technology R&D

High Margin Coil service business expected to increase operating margin Consensus revenue expected to grow at 88% and consensus EBITDA growth of 194% in 2012

Expanding drilling business has signed contracts that represent expected IRR of 20%+ High margin coil service business expected to produce IRR of 40%+

1. Firstcall consensus EBITDA as of 11/1111 2. Industry group defined as PTEN, PDC, PD, TDG and UDRL 3. TEV as of 9/30/11

Focused operations with leverage to oil and liquids rich plays Anticipated in next 12 months 100% of operating XDR Drilling rigs and 82% of the XSR Coil service rigs in oily Williston Basin or liquids rich Greater DJ Basin of the US and 18% or 2 XSR rigs working on gas plays in the Middle East

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Corporate Information
Board of Directors Saad Bargach Managing Director, Lime Rock Partners, Houston, TX
3,4 Randolph M. Charron 3 4 R d l h M Ch President, Characo Corporation, Calgary, AB 5

Officers Thomas D. Wood Chairman and Interim CEO Matthew S P M h S. Porter Chief Financial Officer Richard D. Havinga Chief Operating Officer and Vice President, Engineering and Design Brett Cole General C G l Counsel l Tyson Seeliger Vice President, Sales & Marketing Martin Ramirez Corporate Controller L. L Ann Beattie Corporate Secretary Corporate and Investor Relations tel: +1 403 450 1190 e-mail: ir@xtremecoil.com Shareholders and other interested individuals can view Xtreme Coil public documents at www.xtremecoildrilling.com where we have posted drilling rigs and locations, historical information, shareholder reports, news releases, the current corporate presentation, as well as trading and contact information.

Auditors PricewaterhouseCoopers LLP Calgary, AB Bank B k HSBC Bank Canada, Calgary, AB Solicitors Stikeman Elliott LLP, Calgary, AB Stock Exchange and Symbol TSX, XDC TSX XDC Transfer Agent and Registrar Valiant Trust Company, Calgary, AB toll free: +1 866 313 1872 e-mail: inquiries@valianttrust.com Wholly-Owned Subsidiaries Xtreme Coil Drilling Corporation Houston, Texas, USA tel: +1 281 994 4600 fax: +1 281 994 4650 Xtreme Coil Drilling Mxico, S.A. de C.V. Mexico Xtreme (Luxembourg) S.A. Xtreme Equipment Group S.A. Luxembourg Joint Ventures Xtreme Coil Drilling Saudi Arabia Ltd Ltd. Saudi Arabia Lucas-Xtreme Drilling Pty Ltd. Australia

Lawrence M. Hibbard 2,3,4 Independent Businessman, Houston, TX Daniel Z. Remenda 4, 5 Independent Businessman, Calgary, AB Peter J. Sharpe 5 Executive Vice President, Wells Shell International Exploration and Production B.V. The Hague, The Netherlands Marc L. Staniloff 2,3 Chairman and Chief Executive Officer Superior L d i C S i Lodging Corp., C l Calgary, AB Kyle W. Swingle 5 Senior Technical and Project Advisor Xtreme Coil Drilling Corp., Steamboat Springs, CO Thomas D. Wood 1 Chairman, Xtreme Coil Drilling Corp., Calgary, AB

1 2

Chairman of the Board Audit Committee 3 C Compensation C ti Committee itt 4 Governance and Nominating Committee 5 Health, Safety, Environment Committee