Calfrac Well Services Ltd (CFWFF)

Description:

Calfrac Well Services Ltd was formed through the amalgamation of Calfrac Well Services Ltd. and Denison Energy Inc. on March 24, 2004 under the Business Corporations Act (Alberta). The Company provides specialized oilfield services, including hydraulic fracturing, coiled tubing, cementing and other well completion services to the oil and natural gas industries in Canada, the United States, Russia, Mexico, Argentina and Colombia. The principal focus of the Company's business is the provision of hydraulic fracturing services to oil and natural gas exploration and production companies. The Company provides coiled tubing services by running tubing into wells to perform various well servicing operations. Coiled tubing units are often used together with the appropriate support equipment to pump nitrogen, acid or air into wells in order to remove unwanted corrosive acids, solids, gels and fluids from the wellbore and producing zone. Drilling for oil and natural gas involves penetrating numerous geological layers, many of which may be saturated with fresh or salt water, oil, natural gas, or combinations of all three. To protect groundwater from contamination emanating from the wellbore, surface casing is run to a depth below the level of groundwater and fresh water aquifers and cemented in place. In many wells, intermediate and production casing is also run below the level of surface casing and cemented in place. Once the cement has hardened, all of the geological formations that hae been penetrated are isolated from each other and the completion of the well can proceed. Its competitors include Schlumberger Limited, Halliburton Company and Baker Hughes Incorporated. The Company also competes against Trican Well Services Ltd. in Canada, the United States and Russia, and Canyon Services Group Inc. in Canada. The Company is subject to increasingly stringent federal, provincial, state and local laws and regulations relating to the importation, release, transport, handling, storage, disposal and use of, and exposure to, hazardous materials, radioactive materials and explosives, and the protection of the environment, including laws and regulations governing air emissions, chemical usage, water discharges and waste management.