Peters & Co Conference

Peters & Co Conference

Forward Looking

CAUTIONARY STATEMENT

Certain information contained in this presentation is forward-looking and involves risks 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 “Management’s Discussion and Analysis” sections of Xtreme Coil’s SEDAR filings including, but not limited to, the 2012 Second Quarter MD&A and the 2011 Annual Filing.

These reports are available at:

www.xtremecoil.com

3

XTREME DRILLING AND COIL SERVICES OVERVIEW

Corporate Snapshot

TICKER: XDC (Toronto Stock Exchange)

Market Cap: $85mm

Enterprise Value¹: $230mm

3 Month Average Daily Volume: 49,051

Shares Outstanding: 65.6mm

Public Float: 31mm

 Directors & Management: 11.8%

 Greater than 10% Shareholders: 41%

Total Assets²: 502.9mm

Employees: 589 (@ 4/2/12)

Headquarters: Calgary, Alberta and Houston, Texas

Website: www.xtremecoil.com

4

1. Market Cap as of 9/4/12 and Net Debt as of 6/30/11 2. As of 6/30/12

Xtreme Overview

XTREME DRILLING AND COIL SERVICES IS A TECHNOLOGY FOCUSED PROVIDER OF LAND BASED DRILLING AND COILED TUBING 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.

 Coiled Tubing 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 currently in the US.

Corporate Strategy

6

 Continue to grow the business by further strengthening Xtreme’s presence in current focus

areas and enter new areas where the Xtreme rigs are well suited

 Maintain and expand the strong contract coverage with quality operators

 Actively pursue the completion and workover segment in the U.S and to secure longer term

contracts for the coiled tubing units

 Optimize assets through redeployment of smaller assets to robust middle east re-entry

market

 Leverage on existing middle east XSR success

 Further develop Xtreme’s technology to maintain competitive advantages and meet future

Investment Overview

7 XTREME (XDC.T) IS A COMPELLING ROCKIES AND SOUTH TEXAS FOCUSED DRILLING AND COILED TUBING SERVICE COMPANY WITH AN INTERNATIONAL PRESENCE IN THE SAUDI ARABIA

 Leading Edge Drilling and Coil Technology

 Average fleet age of less than 3 years

 Rigs are ideally suited for major operators in expanding resource plays due to AC

equipment, integrated skidding packages, small footprint design and minimized craneless loads

 Largest as well as highest spec coiled tubing units in North America

 Strong Growth Profile

 Operating days estimated to increase by 55% in 2012

 High margin XSR coil service business expected to increase operating margin

 Consensus revenue expected to grow at 80% and consensus EBITDA growth of 150% in 2012

 Attractive Valuation

 EV / 2012 EBITDA¹: 5.1x

 EV / 2013 EBITDA¹: 3.8x

 Mkt. Cap / TEV³: 0.28x vs. industry group² average of 1x

 Pipeline of attractive IRR projects

 At inflection point of realizing potential of past engineering and technology R&D

 Expanding drilling business has signed contracts that represent expected IRR of 20%+

 High margin coil service business expected to produce IRR of 30%+

 Focused operations with leverage to oil and

liquids rich plays

 Anticipated in next 12 months 85% of

operating XDR Drilling rigs and 100% of the XSR coil service rigs in oily or liquids rich basins.

1. Firstcall consensus EBITDA as of 9/4/12

2. Industry group defined as PTEN, PDC, PD, TDG and UDRL 3. TEV as of 6/30/12

Ambitious Newbuild Program

8  Xtreme designs and assembles all of its drilling

and coiled tubing service rigs

 Over the past 18 months Xtreme has completed and commissioned 9 XDR 500 drilling rigs and 5 XSR rigs

 Currently only 1 XDR 500 drilling rig remains under construction

 Expected delivery in 4Q 2012

 Firm term contracts secured for both rigs

 The total construction cost for each XDR 500 rig is approximately USD 17.5 million

 Cost saving estimated to 10-15% compared to

ordering rigs from third parties

9x XDR 500 5x XSR Newbuild rigs already completed

Newbuild rigs remaining 1x XDR 500

Xtreme’s Business

9  The Xtreme fleet consists of XDR drilling rigs and XSR coiled

tubing service rigs with patented and proprietary design

 Similar designs enable benefits of scale in maintenance and spare part inventories

 Xtreme holds over 30 patents

 The XDR fleet consist of 20* modern high-spec rigs

 4 different models; XDR 500, XDR 400 XDR 300 and XDR 200

 Majority of rigs working on term contracts in the U.S.  3 rigs drilling in the Canadian market

 The XSR fleet consists of 8 new high-spec units

 2 rigs working on term contract in Saudi Arabia with the rest targeting the West Texas well-to-well market

*Not including the one newbuild XDR 500 drilling rigs to be completed

RIG FLEET BY TYPE

Current Newbuilds Total

XDR drilling rigs 20 1 21

XSR coiled tubing service

rigs 8 0 8

Operations in the U.S., Canada

and Saudi Arabia

10 Khuff Gas Reservoir 2 Service Rigs Territory Key Headquarters Drilling Support Facility Well Service Shale Plays Operations

Saudi Arabia Cold Lake 2 Drilling Rigs Viking 1 Drilling Rig Canada Bakken 7 Drilling Rigs* DJ Basin/Niobrara 10 Drilling Rigs* Unita Basin 1 Drilling Rig Eagle Ford 5 Service Rigs* United States Rigs by region

U.S. Canada Saudi Arabia

XDR* 19 3 0 XSR 5 0 2 Total 24 3 2 Hydrocarbons targeted Oil/Liquids Gas XDR* 18 2 XSR 6 2 Total 24 4

*Including the two newbuild XDR 500 drilling rigs to be completed

Please note that one XDR 200 rig and one XSR rig are currently stacked in the U.S.

1Q 2012 segmented revenues (%)

U.S. Canada Saudi Arabia

XDR* 70% 11% 0%

XSR 6% 0% 13%

Unconventional Oil Production is Expected to

Increase Considerably in Core Operating Areas

11 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

2008 2010 2012e 2014e 2016e 2018e 2020e

P ro d u c ti o n ( m m b d )

U.S. tight oil production ('000 bpd)

2010 2011 2012 2013 2014 2015 2016 Chg p.a. '11-'16 Williston (Bakken) 270 390 630 800 950 1,050 1,100 142 Barnett 20 20 30 40 50 50 50 6 Eagle Ford 30 100 230 360 490 620 750 130 Monterey 10 10 10 20 30 40 50 8 Niabora 30 40 60 70 90 100 120 16 Utica 0 0 0 0 10 50 90 18 Other 20 50 50 80 80 110 120 14

Total tight oil 380 610 1,010 1,370 1,700 2,020 2,280 334

U.S. tight oil production growth

Source: IEA; IHS Cera; Wood Mackenzie; Pareto

Source: IEA; Railroad Commission of Texas; DMR North Dakota; Pareto

 Production from the U.S. unconventional oil plays is expected to increase rapidly over the coming years due to significant capital investments

 Main contributors of tight oil will be the Bakken and Eagle Ford plays

 High production growth will require substantial drilling activity

12

DRILLING SERVICES - XDR

High Specification Equipment Preferred

13

U.S. land rig count by power type

Source: Helmerich & Payne

 Operators have a preference for AC

rigs, which provide more power and efficiency than mechanical and SCR rigs

 The AC powered fleet in the U.S. has nearly doubled in the past 4 years

 It is estimated that almost 40% of the

current fleet is still mechanical

 According to RigData, older,

mechanical rigs are being scrapped in large numbers as a result of their inability to adequately drill more complex unconventional wells

 All of Xtreme’s rigs are AC powered

rigs 0 200 400 600 800 1000 1200 AC SCR Mechanical E s ti m a te d n u m b e r o f ri g s 2008 2012

Drilling Segment Overview

XDR FLEET IS AMONG THE YOUNGEST AND MOST TECHNOLOGICALLY ADVANCED IN THE INDUSTRY

 Average Age of less than 3 years on

entire fleet

 100% of the fleet is AC driven w/Top Drives

 Current utilization of 85% on 20 rigs

 1 New XDR 500 rig in process w/ term

contract

14

RIG RIG TYPE STATUS LOCATION

START DATE

Rig 3 XDR 200 Operating Canada Rig 4 XDR 200 Idle Wyoming Rig 5 XDR 200 Operating Canada Rig 6 XDR 400 Operating Colorado Rig 7 XDR 500 Operating N Dakota Rig 8 XDR 400 Operating Colorado Rig 10 XDR 200 Idle Canada Rig 11 XDR 300 Operating Colorado Rig 12 XDR 300 Operating Colorado Rig 14 XDR 300 Operating Colorado Rig 15 XDR 300 Operating Colorado Rig 16 XDR 500 Operating Colorado Rig 17 XDR 500 Operating N Dakota Rig 18 XDR 500 Operating N Dakota Rig 19 XDR 500 Operating Colorado Rig 20 XDR 500 Operating Colorado Rig 21 XDR 500 Operating N Dakota Rig 22 XDR 500 Operating Colorado Rig 23 XDR 500 Operating Colorado

Rig 24 XDR 500 In Process Colorado Q4 2012 Rig 25 XDR 500 Operating N Dakota

4 4 2 11 XDR by Type* XDR 200 XDR 300 XDR 400 XDR 500

XDR 500

15

 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

 Climate controlled driller’s 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

The XDR 500 design is Xtreme’s largest and

most technologically advanced drilling rig

16

Integrated AC top drive system Computerized drilling controls

Automated hydraulic catwalk

Variable frequency drive system

Integrated multi-well skid system Compact 1500HP AC Drawworks

Iron roughneck pipe handling

17

COILED TUBING SERVICES - XSR

Large Coil Macro Themes

ANTICIPATED SUPPLY DEMAND IMBALANCE IN LARGE COIL SERVICE MARKET INTO 2013

 Large diameter coil units are expected to

make up an increasing portion of the major unconventional resource completion and service activities

 As drilling continues and wells age in these

unconventional resource plays, it is anticipated that well intervention or service with coil will increase demand over the long term

 Even with current industry fleet expansion

taken into account, it is anticipated that demand will outstrip supply into 2013

 Current economics on large coil service

units imply returns in excess of 40%

18

Source: Global Hunter Securities

BAKKEN EAGLE FORD HAYNESVILLE

Wells Drilled 4,083 4,500 1,264

% to b e Completed 98% 98% 98%

Total Completions 4,001 4,410 1,239

% of Wells Using CT 66% 66% 66%

Total Wells Using CT 2,641 2,910 818

Avg. Days per Well 8 6 7

Days Required 19,807 17,171 5,315

Total Working Days 250 250 250

CT Unit Demand 79 69 21

Total Demand 169

Current Supply 124 Implied Utilization 136% 2012

Coiled tubing market

19

U.S. well service / workover rigs

Source: Spears & Associates

 Number of well completions

expected to increase steadily over the next five years

 Increased complexity of

unconventional drilling has led to an increase in well service

intensity, as operators are spending more days per well

 This in turn has led to increased

demand for more advanced

completion equipment such as coil tubing

 Limited supply of large diameter

coil (2” and larger) has led to premium pricing for providers of high specification units

0 10,000 20,000 30,000 40,000 50,000 60,000 0 500 1,000 1,500 2,000 2,500 3,000 N u m b e r o f ri g s

XSR Opportunity and Overview

HORIZONTAL WELL LATERALS ARE GETTING LONGER AND NOW ACCOUNT FOR MORE THAN 70% OF THE WELLS BEING DRILLED IN NORTH AMERICA

 The majority of the industry’s coiled tubing units are at their limit and not completing

the job.

 Extended lateral depths require larger, more powerful and precise controlled CT

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 design team

 proprietary equipment and control systems

 supportive industry conditions

XSR 200 Ultra-Deep CT Rig

21

DEEPER

 AC Powered Injector with 200,000 lbs. pulling capacity

 23,500ft x 2-5/8” Coiled Tubing

 Up to ±3,000ft horizontal reach over standard 2” string

FASTER

 Programmable Logic Computer (PLC): Increased precision & measurability allowing for acute

control of weight on bit, differential pressure and ROP resulting in a reduction in motor stalls & resultantly mill times

 Rigup Times: Reduced

SAFER

 Mast Configuration: Minimizes working under suspended loads, reduced total lifts

 Transportation: Proprietary double-trailer configuration

XSR CT Reel Transport Trailer

XTREME’S REEL TRAILER IS THE LARGEST CAPACITY COILED TUBING TRANSPORT TRAILER IN THE WORLD

 Capable of transporting 23,500 ft.

of 2-5/8” coil

22

 Complies with road standards in

the United States and Canada

COILED TUBING OD (in) CT WALL REEL OD/ID (in) Length (ft) String WEIGHT (lb) String Capacity (bbls)

XSR Differentiating Technology

23

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

 Ability to control drill

 Reduced motor stalls

 Initial jobs indicated a stall to plug frequency of .05 compared to similar 2” CT units of 2 to 1

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

 Margins are consistent with deep

coil North American expectations

 Provides International opportunity

to deploy new XSR 200 coil service rigs

 Recent extension of contract through July of 2013

Customer Endorsement

 Coiled tubing re-entry drilling program reduces drilling time by half; improves

production six fold

24

Source: Baker Hughes; 2011 Investor and Analyst Conference Presentation

25

FINANCIAL OVERVIEW

Strong Growth Potential

26

¹Q3 ‘12 – Q4 ‘12 based on analyst consensus (9/4/12)

In millions of $CAD

XTREME IS ON THE VERGE OF REALIZING HIGHER REVENUES AND EBITDA MARGINS BASED ON PAST R&D AND ENGINEERING EXPENDITURES

 Revenue Growth of 48% from Q3 2011 to Q2 2012

 Current analyst consensus is for 50% revenue growth in 2012

□ Estimated that available rigs will average 24 in 2012

□ Revenue clarity with approximately 5,200 days on long term contracts in 2012

 EBITDA Growth of 29% from Q3 2011 to Q2 2012

 Current analyst consensus is for 110% growth in EBITDA for 2012

 New XSR business coupled with significant operating leverage allows for continued margin expansion into 2013 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $25.3 $31.2 $37.3 $38.9 $45.0 $48.0 $5.5 $6.1 $7.3 $7.1 $11.9 $13.4 Revenue EBITDA

Fleet Expansion

AGGRESSIVE CAPEX PROGRAM IS PROJECTED TO INCREASE FLEET TO 29 RIGS BY END OF Q4 2012 27 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $11.0 $22.0 $33.0 $49.0 $40.0 $47.0 $12.0 $4.0 CAPEX In millions of $CAD 0 5 10 15 20 25 30 13 13 14 15 17 18 20 21 3 3 3 3 5 4 4 6 XDR XSR ¹Q3 ‘12 – Q4 ‘12 based on company estimates

Substantial Portion of Fleet on Term Contracts

28  Most of the XDR fleet working on term contracts

in the U.S.

 2 XSR rigs on term contract in Saudi Arabia with Baker Hughes, while 5 XSR rigs are targeting the well-to well market in Eagle Ford, Texas

 Xtreme estimates the current revenue backlog from existing contracts to be approximately USD 315 million

Xtreme’s current contract status

Xtreme’s secured revenue backlog

As of 3Q 2012

*Including the one XDR 500 rigs currently under construction 80 315 150 70 15 0 50 100 150 200 250 300 350 2H 2012 2013 2014 2015 Total USD million 0 180 360 540 720 900 1080 1260 XSR XSR XSR XSR XSR XSR XSR XSR XDR 500 XDR 500* XDR 500* XDR 500 XDR 500 XDR 500 XDR 500 XDR 500 XDR 500 XDR 400 XDR 300 XDR 300 XDR 300 XDR 300 XDR 200 XDR 400 XDR 500 XDR 400 XDR 200 XDR 200 XDR 200 Stacked 1H13 2H13 1H14 2H14 1H15 2H15 Well-to-well drilling Well-to-well drilling Well-to-well drilling Well-to-well drilling Well-to-well drilling 2H12 Well-to-well drilling Stacked

Majority of Contract Revenue Backlog with

Strong Counterparties

29  Xtreme’s contracts are mainly with large, first

class counterparties, including Anadarko Petroleum, Baker Hughes and SM Energy

1Q 2012 revenue by customer

Secured revenue backlog by

customer

Counterparty with investment grade ratings from S&P and Moody’s 57% 10% _{9% 8%} 6% _4% 3% _{1% 1%} 0% 10% 20% 30% 40% 50% 60% 42% 13% _12% 8% 8% _{6% 6%} 5% 1% 0% 10% 20% 30% 40% 50%

Financial overview

30

SUMMARY FINANCIAL INFORMATION

2009 2010 2011 Q1 11 Q1 12 Q2 12

Revenue _{99,371 85,585 103,982 23,171 37,265 38,851}

Operating expenses (incl.

G&A) _{73,369 63,451 84,364 19,094 29,730 31,706} EBITDA(1) 26,002 22,134 19,618 4,077 7,535 7,145 Capital expenditures _{(17,048) (29,884) (115,340) (10,619) (40,606) (47,000)} Total assets _{310,966 294,448 415,325 295,367 455,505 502,868} Cash _{21,864 2,994 5,892 5,126 3,481 6,979} Total debt _{43,676 39,493 81,437 44,329 117,490 151,018} Net debt _{21,812 36,499 75,545 39,203 114,009 144,039}

(1) Excludes impairment, stock-based compensation, F/X gains (losses), and gains (losses) on sale of equipment

Investment Overview

31 XTREME (XDC.T) IS A COMPELLING ROCKIES AND SOUTH TEXAS FOCUSED DRILLING AND COILED TUBING SERVICE COMPANY WITH AN INTERNATIONAL PRESENCE IN THE SAUDI ARABIA

 Leading Edge Drilling and Coil Technology

 Average fleet age of less than 3 years

 Rigs are ideally suited for major operators in expanding resource plays due to AC

equipment, integrated skidding packages, small footprint design and minimized craneless loads

 Largest as well as highest spec coiled tubing units in North America

 Strong Growth Profile

 Operating days estimated to increase by 55% in 2012

 High margin XSR coil service business expected to increase operating margin

 Consensus revenue expected to grow at 80% and consensus EBITDA growth of 150% in 2012

 Attractive Valuation

 EV / 2012 EBITDA¹: 5.1x

 EV / 2013 EBITDA¹: 3.8x

 Mkt. Cap / TEV³: 0.28x vs. industry group² average of 1x

 Pipeline of attractive IRR projects

 At inflection point of realizing potential of past engineering and technology R&D

 Expanding drilling business has signed contracts that represent expected IRR of 20%+

 High margin coil service business expected to produce IRR of 30%+

 Focused operations with leverage to oil and

liquids rich plays

 Anticipated in next 12 months 85% of

operating XDR Drilling rigs and 100% of the XSR coil service rigs in oily or liquids rich basins.

1. Firstcall consensus EBITDA as of 9/4/12

2. Industry group defined as PTEN, PDC, PD, TDG and UDRL 3. TEV as of 6/30/12

Board of Directors

Saad Bargach 5

Managing Director, Lime Rock Partners, Houston, TX

Randolph M. Charron 3,4

President, Characo Corporation, Calgary, AB

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 Lodging Corp., Calgary, AB

Kyle W. Swingle 5

Senior Technical and Project Advisor

Xtreme Coil Drilling Corp., Steamboat Springs, CO

Thomas D. Wood 1

Executive Chairman, Xtreme Coil Drilling Corp., Calgary, AB

1_{Chairman of the Board} 2_{Audit Committee} 3_{Compensation Committee}

4_{Governance and Nominating Committee} 5_{Health, Safety, Environment Committee}

Officers

Thomas D. Wood

Chairman and Interim Chief Executive Officer

Matthew S. Porter

Chief Financial Officer

Richard D. Havinga

President and Chief Operating Officer

Brett Cole

General Counsel

Tyson Seeliger

Vice President, Sales & Marketing

Martin Ramirez

Corporate Controller

Corporate and Investor Relations

tel: +1 281 994 4600 e-mail: [email protected]

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

HSBC Bank Canada, Calgary, AB

Solicitors

Stikeman Elliott LLP, Calgary, AB Stock Exchange and Symbol TSX, “XDC”

Transfer Agent and Registrar

Valiant Trust Company, Calgary, AB toll free: +1 866 313 1872

e-mail:[email protected]

Wholly-Owned Subsidiaries

Xtreme Coil Drilling Corporation

Houston, Texas, USA tel: +1 281 994 4600 fax: +1 281 994 4650

Xtreme Coil Drilling México, S.A. de C.V.

Mexico

Xtreme (Luxembourg) S.A. Xtreme Equipment Group S.A.

Luxembourg Joint Ventures

Xtreme Coil Drilling Saudi Arabia Ltd.

Saudi Arabia

Lucas-Xtreme Drilling Pty Ltd.

Australia