December 9, 2010 / 1:12 PM / in 7 years

UPDATE 1-Calfrac sets 19 pct higher 2011 capex

* Ups half-yearly dividend by 50 pct to C$0.075/share

* Sees 2011 capex of C$280 mln

* Canada division ‘11 budget to be C$113 mln

* U.S. division to get C$129 mln

Dec 9 (Reuters) - Canada’s Calfrac Well Services Ltd (CFW.TO) set a 19 percent higher 2011 capital budget and said it will continue to expand in the North American unconventional oil and natural gas markets.

The oilfield services company also raised its half-yearly dividend by 50 percent to 7.5 Canadian cents a share.

Of the C$280 million budget for 2011, the Canadian division will get about C$113 million. This includes the addition of about 91,000 hydraulic horsepower to its fleet in the country.

The U.S. segment’s budget will be C$129 million, and will be used mainly for expanding its presence in the oil-producing regions in the country.

Last month, Calfrac had said demand for its pressure pumping services is expected to grow by the end of the year and into 2011 as horizontal drilling activity in Canada is picking up to its seasonal peak. [ID:nSGE6A20D9]

Calgary-based Calfrac’s shares, which have gained nearly 25 percent in value since the company posted higher third-quarter results in November, closed at C$32.51 on Wednesday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Roshni Menon)

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