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CALGARY, Dec. 9 /CNW/ - Calfrac Well Services Ltd. ("Calfrac" or the "Company") (TSX-CFW) is pleased to announce a capital budget of approximately $45 million for 2010 projects. The capital program will focus on further bolstering the infrastructure and logistical capabilities of Calfrac's Canadian operating division, as it continues to expand its presence in the Montney and Horn River basins. The program also includes additional investment in high rate pumping equipment in response to increasing customer demand for high rate completions in the emerging unconventional plays. Additional capital is also being allocated in respect of equipment and facilities in support of Calfrac's growing Russian operations. Calfrac also plans to deploy additional high rate fracturing equipment to its United States operating fleet, which will provide additional flexibility to the Company as it continues to broaden its presence in the United States pressure pumping market. In addition, approximately $11 million remaining from the Company's 2009 capital program is expected to be spent in the first quarter of 2010.
The 2010 capital program, combined with the acquisitions of the fracturing division of Pure Energy Services Ltd. and of Century Oilfield Services Inc. completed in the second half of 2009 demonstrates Calfrac's continued commitment to expanding its operational capabilities and geographic presence in a prudent manner, while maintaining a strong balance sheet through a period of uncertain oilfield service activity on a global basis. As it has done in the past, the Company will continue to evaluate opportunities for adjusting capital investment in 2010 as greater visibility unfolds.
Calfrac is also pleased to announce that its Board of Directors has declared a dividend pursuant to its semi-annual dividend policy. The dividend of $0.05 per common share will be paid on January 15, 2010 to shareholders of record on January 4, 2010.
Calfrac's common shares are publicly traded on the Toronto Stock Exchange under the trading symbol "CFW". Calfrac provides specialized oilfield services to exploration and production companies designed to increase the production of hydrocarbons from wells drilled throughout western Canada, the United States, Russia, Mexico and Argentina.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information concerning the allocation of capital and equipment. These forward-looking statements and information are based on certain key expectations and assumptions made by Calfrac. Although Calfrac believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as Calfrac cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, prevailing economic conditions; commodity prices; sourcing, pricing and availability of raw materials, component parts, equipment, suppliers, facilities and skilled personnel; dependence on major customers; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect Calfrac's operations or financial results are included in Calfrac's annual information form and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Calfrac does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Calfrac Well Services Ltd.
For further information: For further information: Douglas R. Ramsay, President and Chief Executive Officer, Telephone: (403) 266-6000, Fax: (403) 266-7381; Laura A. Cillis, Senior Vice President, Finance and Chief Financial Officer, Telephone: (403) 266-6000, Fax: (403) 266-7381; Tom J. Medvedic, Senior Vice President, Corporate Development, Telephone: (403) 266-6000, Fax: (403) 266-7381