September 23, 2010 / 12:58 PM / in 8 years

UPDATE 1-Calfrac increases 2010 capital program to C$236 mln

* Raises capital program by C$56 million

* To add 55,000 horsepower to fracturing fleet

Sept 23 (Reuters) - Canada’s Calfrac Well Services Ltd (CFW.TO) raised its capital program for 2010 nearly by a third to C$236 million, helped by its recent contract commitments in the United States.

The Calgary-based company said it will add about 55,000 horsepower to its fracturing fleet, taking its total capacity to about 650,000 HHP at the end of the capital program.

In June, the company raised its capital program by C$60 million, partly to construct a large fracturing spread for its U.S. operations. [ID:nSGE6560HB]

Calfrac expects to spend about C$66 million of its capital program in 2011 and said the increased capital will be funded from cash flow and existing credit facilities.

The company said the increase in capital program was largely due to the construction of a large fracturing spread for Calfrac’s U.S. operations, supported by its recent long-term commitment contracts in the Marcellus shale formation.

Calfrac shares, which have lost about 6 percent of their value since the last one month, closed at C$22.26 Wednesday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Jarshad Kakkrakandy)

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