Calfrac Announces 2012 Capital Program and Increased Credit Facilities

CALGARY, Sept. 21, 2011 /CNW/ - Calfrac Well Services Ltd. ("Calfrac" or the "Company") (TSX: CFW) is pleased to announce a capital budget for 2012 of $271 million. The capital program will focus on further bolstering Calfrac's fracturing, coiled tubing and cementing capacity and infrastructure, and also includes capital dedicated to fund the Company's ongoing proactive maintenance program for its existing fleet of equipment as it expands its presence in the North American unconventional oil and natural gas markets.  Calfrac remains committed to prudently managing its business while maintaining a strong balance sheet and as a result, is well positioned to respond quickly to market opportunities to pursue accretive expansions of its business as they arise.

The Canadian division's 2012 capital budget totals $88 million and includes the addition of approximately 79,000 hydraulic horsepower ("HHP") to Calfrac's Canadian fleet.  Also included is an additional deep coiled tubing unit which will further expand Calfrac's presence in the growing Canadian deep coiled tubing market.  Upon completion of the 2012 capital program, total horsepower capacity in Canada will be approximately 400,000 HHP, solidifying the Company's position as one of the largest fracturing service providers in the Canadian market.

The United States division's 2012 capital budget totals $183 million.  This program includes the addition of approximately 132,000 HHP and support equipment to Calfrac's U.S. pressure pumping fleet.  The 2012 capital budget also includes the addition of five cementing units and additional infrastructure to support the Company's expanded presence in the U.S. market.  Upon completion of the 2012 capital program, Calfrac's U.S. division's total horsepower capacity will be approximately 570,000 HHP.

The Company is also pleased to announce that it has received commitments from a syndicate of Canadian financial institutions to increase its existing $175 million credit facilities to $250 million, and extend the term of these facilities to four years. The combination of Calfrac's new credit facilities, strong working capital position, long-term debt structure and expected future cash flows will position it with significant flexibility to pursue additional growth opportunities as they are identified.

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, Colombia 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 and the availability of increased credit facilities.  These forward-looking statements and information are based on certain key expectations and assumptions made by Calfrac, and in the case of the increased credit facilities, are based on commitments received from the syndicate of Canadian financial institutions in question.  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 global 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; 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:

Douglas R. Ramsay
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 

 


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