CALFRAC ANNOUNCES 2011 CAPITAL PROGRAM AND INCREASED SEMI-ANNUAL DIVIDEND

CALGARY, Dec. 9 /CNW/ - Calfrac Well Services Ltd. ("Calfrac" or the "Company") (TSX-CFW) is pleased to announce a capital budget for 2011 of $280 million. The capital program will focus on further bolstering Calfrac's fracturing, coiled tubing and cementing capacity, infrastructure and logistical capabilities as it continues to expand its presence in the emerging North American unconventional oil and natural gas markets. Additional equipment is also being constructed to support Calfrac's growing Russian and Latin America operations, including the anticipated entry into the Colombian pressure pumping market.

The Canadian division's 2011 capital budget totals $113 million, which includes the addition of approximately 91,000 hydraulic horsepower ("HHP") to Calfrac's Canadian fleet. A portion of this capital is supported by a recently executed long-term agreement with one of the leading operators in the Cardium play. Upon completion of the 2011 capital program, total horsepower capacity in Canada will reach approximately 339,000 HHP.

The United States division's 2011 capital budget totals $129 million. This program includes the addition of approximately 74,000 HHP and support equipment to the Company's U.S. pressure pumping fleet. The focus of this capital will be to further expand Calfrac's presence in the oil producing regions of the U.S. market. Upon completion of the 2011 capital program, Calfrac's U.S. division's total horsepower capacity will be approximately 405,000 HHP.

The Russia division's 2011 capital budget totals $27 million, which includes the construction of the Company's sixth fracturing fleet and eighth deep coiled tubing unit as well as additional equipment to support the Company's existing operating fleet.

The Latin America division's 2011 capital budget totals $7 million, and includes the construction of additional equipment for the Colombian well service market. The entry into the Colombian market is consistent with Calfrac's geographic diversification strategy and signifies its assessment of the significant growth opportunities in the Colombian pressure pumping market.

In addition to the 2011 capital program outlined above, Calfrac expects that during the first six months of 2011 it will complete the remaining portion of its 2010 capital program with the anticipated expenditure of approximately $120 million, consisting primarily of capital associated with the construction of two large fracturing spreads to service two long-term minimum commitment contracts in the Marcellus Shale play and to supplement Calfrac's North American horsepower capacity.

The combination of expected strong future cash flows, the completion of our recent US$450 million senior note issue and the $175 million of undrawn credit facilities positions Calfrac to pursue growth opportunities in a prudent manner with a strong balance sheet that provides flexibility to respond to market opportunities as they arise.

Calfrac is also pleased to announce that its Board of Directors has approved a 50% increase to its semi-annual cash dividend from $0.05 to $0.075 per share, thereby increasing the annual dividend to $0.15 per share, and has declared a dividend of $0.075 per common share to be paid on January 15, 2011 to shareholders of record on January 3, 2011.

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; 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.

For further information: Douglas R. Ramsay, Chief Executive Officer, Telephone: [phone], Fax: [phone]; Laura A. Cillis, Senior Vice President, Finance and Chief Financial Officer, Telephone: [phone], Fax: [phone]; Tom J. Medvedic, Senior Vice President, Corporate Development, Telephone: [phone], Fax: [phone]