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Press release from CNW Group

Calfrac Announces 2013 Capital Program and Dividend

Thursday, December 06, 2012

Calfrac Announces 2013 Capital Program and Dividend06:00 EST Thursday, December 06, 2012CALGARY, Dec. 6, 2012 /CNW/ - Calfrac Well Services Ltd. ("Calfrac" or the "Company") (TSX: CFW) announces a 2013 capital budget of approximately $117 million. The capital program is focused on maintenance and support capital and further investment in logistics equipment.  Approximately $25 million of capital is allocated to support Calfrac's growing Latin American operations, including an investment in coiled tubing and fracturing equipment, as the Company's outlook for activity in this region continues to improve. The 2013 capital program does not contemplate any additional expansion capital for Calfrac's Canadian, United States and Russian operations. In addition, approximately $110 million remaining from Calfrac's existing capital program is expected to be spent in 2013.The 2013 capital program demonstrates Calfrac's continued commitment to maintain its equipment fleet in peak operating condition, while introducing further enhancements to improve the Company's service quality and operational efficiency. Calfrac will continue to assess opportunities to strategically expand its geographic presence in a prudent manner through a period of uncertain oilfield service activity, and will also continue to evaluate its capital program in order to make any required adjustments as greater visibility unfolds in 2013.Calfrac is pleased to announce that its Board of Directors has declared a dividend pursuant to its semi-annual dividend policy.  The dividend of $0.50 per common share will be paid on December 21, 2012 to shareholders of record on December 14, 2012.   The Board of Directors has also approved an amendment to Calfrac's dividend policy by increasing the frequency of dividends thereunder to a quarterly basis, commencing with a $0.25 dividend to be declared in the first quarter of 2013.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 in respect of geographic expansion.  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; exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; governmental regulations; 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