Suhayl Abdul Mohsin Al Shoaibi & Sons Holding Company Limited and its affiliates and Xtreme Coil Drilling Corporation and its affiliates announced collaboration related to developing new business in the Middle East and North Africa.

This business collaboration will guide the creation of JV companies to promote and provide certain Xtreme Coil contract drilling services and products through Shoaibi Group's strong operations and market expertise in the Kingdom of Saudi Arabia and Algeria targeting national oil companies and their global affiliates as well as to other companies operating in Saudi Arabia, Bahrain and Algeria. Xtreme Coil will own 80 percent and Shoaibi Group will own 20% of the new companies.

Shoaibi Group and Xtreme Coil announced the formation of the first JV, Xtreme Coil Drilling Saudi Arabia Limited. The parties to the JV agree to work on an exclusive basis to provide mutual benefit by introducing and engaging Xtreme Coil's contract drilling services to exploit current and future opportunities with respect to oil and natural gas development projects in Saudi Arabia. The JV addresses a number of principles regarding structure of the new companies, funding and accounting, governance, change of control, technology licensing, services related to drilling equipment, potential drilling contracts and performance criteria, timetables, confidentiality and compliance, among other business matters.

Mr Faisal Al Shoaibi director of Shoaibi Group said that "Shoaibi Group is proud to partner with Xtreme Coil in this venture. We believe this partnership is in perfect synergy with Shoaibi Group's strategy to provide proven innovative technology to the MENA region."

Xtreme Coil's business strategy to expand activities in Saudi Arabia will benefit from the relationship now formalized with the Shoaibi Group and Xtreme expect to pursue a range of new opportunities through this JV. Both parties to the JV have agreed to provide their proportionate share of funding on a project by project basis and Xtreme Coil Drilling Saudi Arabia Limited. is establishing an office in Saudi Arabia to support rig mobilization and ongoing operations in that country. Preexisting joint venture arrangements involving Xtreme Coil will not be affected by the terms of this JV.