GLOBAL
                       A major cornerstone of Calfracs success is the collective experience, expertise and performance of our employees.

A Karihman Abdulmedzhidov  Boualem Abeddou  Mikhail Abolentsev  Wayne Adams  Martin Adimulia  Adam Adishirinov  Bhupinder Adiwal  Veronica Afanasieva  Kibrom Afework  Sergey Agalakov  Andrey Agritsky  Konstantin Agritsky 
Kathleen Ahearn  Lundy Aichele  Clayton Airth  Ruslan Akhmatnabiev  Rafil Akhmerov  Zabir Akhmetzyanov  Vyacheslav Akimov  Royce Aldred  Yuri Alentiev  Lisa Alexandre  Sergey Alexandrov  Andrey Alexeyev  Chandler Allen  Sean D. Allen 
Sean P. Allen  Tyler Allen  Ken Amero  Doug Anderson  Glen Anderson  Jeremy Anderson  Ian Andreas  John Andrews  Nathan Andrews  Rusty Angel  Emmanuel Anigbogu  Alexander Anokhin  Nick Antal  Mark Apshkrum  Jim Arscott  Gary 
Arthur  Trenton Arts  Andrey Astashov  Igor Ateslenko  David Atkinson  Nicholas Auger  Amy Austin  Olga Avdeeva  Terry Avery  Joe Ayars  Darrell Aylward  Rustam Azimkulov B Sevintch Babaeva  Igor Babenko  Alexei Babin  Ray Backer 
Kim Backstrom  Steven Badari  Fanavi Badretdinov  Alexander Baiduzha  Brian Baile  Kristi Baker  Randy Baker  Nikolay Baklanov  Dennis Bakula  Vitaliy Bal  Sergey Balahnin  Brian Ball  Mike Ball  John Ballek  Matthew Ballek  Dan 
Barkman  Ronald Barrett  Ed Bartlett  Peter Barton  Darby Bashnick  David Basinski  Valeriy Baskakov  Sergey Basov  Nikolay Bass  Oksana Batrachenko  Don Battenfelder  Slava Bazhnov  William Beagley  Shannon Beaudoin  Kenneth 
Beazley  Jerry Becak  Sydney Beck  Wesley Bednar  Tyler Bednash  Larry Beeds  Vladimir Belan  Igor Belugin  Alexander Belyaev  Nikolay Belyaev  Gilles Belzile  Joe Bennett  David Bennie  Stella Benson  Vladimir Bereshnitsky  Jared 
Bergen  Randy Bergesen  Ron Berry  Darren Bertelsen  Alexander Bespamyatniy  Lorne Beuker  Sergey Bezrukov  Adam Bicknell  Matthew Bingley  Aaron Bisio  Abubakar Bizimana  Brad Blackburn  Jerry Blake  Ron Blanke  Steven Blanke 
Michelle Bliesner  Oleg Blokhin  Dwight Bobier  Yuri Bocharov  Troy Bohnet  Mark Bolton  Nickolay Bondarenko  Sergey Bondarenko  Vivian Boone  Ronda Booth  Tatiana Borisova  Steffen Bos  Albert Bosch  Steven Bosch  Trevor Bosch 
Stephen Bostock  Stephan Bouchard  Chris Bouck  Ken Boulton  Anton Boutchev  John Boutrup  Michael Bowden  Colin Boyd  Kris Bradshaw  Dustin Bratland  Tanner Bratland  Jordan Bray  Al Breemersch  Jody Brett  Brian Briault  Kelly 
Brilz  John Bristow  Simon Brodie  Jody Brooks  Floyd Brown  Jamie Brown  Jordan Brown  Maggie Brown  Mike Brown  Randy Brown  Riki Brown  Bob Brownlee  Chad Buffington  Brady Bulbeck  Sean Burch  Nikolay Burkov  Lee 
Burleson  Wayne Butler  Kelly Buxbaum  Holden Byers  Mike Bylsma  Jeff Byrd  Jeffrey Byrd  Roman Byrtus C Kevin Cain  Colin Caines  Chad Caldwell  Jon-Adam Caldwell  Wes Caldwell  Jose Calvillo  Jordan Campbell  Taylor Campbell 
Brent Carlson  Glenn Carriere  Nick Carter  Stephanie Cartwright  Harry Castling  Jason Chadwick  David Chambers  Greg Chapin  Stephen Chapin  Ty Chapman  Bruce Chartier  Jerry Chaskavich  Al Chenard  Joel Chenard  Larisa Chernoudova 
Igor Chervoniy  Darren Chicoine  Eduard Chiriloalia  Jason Chomyn  Denis Christensen  Erik Christian  Ryan Christoffersen  Ivan Chubenko  Galina Chugunova  Andrey Chumachenko  Matthew Chung  Archie Clampitt  Trevor Clancy  Ronald 
Clarke  Shane Clarke  Jamie Clement  Christopher Clements  Brett Cleverdon  Darcey Closs  Robert Cloutier  Mark Cocks  Brad Coffin  Elizabeth Colbary  Lester Colbourne  Dale Cole  Richard Coleman  Mike Colwell  Ken Conway  Ken 
Cook  Clint Costall  Adam Coughlan  Ronnie Court  Asencio Coustaucio  Chris Craver  Jason Crawford  Jeremiah Crider  Danny Critch  Trevor Cummins  Wayne Cupp  Randy Curkovich D Steve Dadge  Kevin Dalgleish  Gene Dallas  John 
Daly  Frank Dalziel  Mark Darrow  Boris Dautov  Ian Davidson  Ronald Davidson  Anthony Davis  Cody Davis  Joshua Davis  Levon Davis  Chad Dawe  Jason Dawe  Lynden De Cecco  Chris De Launay  Shawn Dean  Dave Dease  Kevin 
Deaust  Robert Deck  Stacey Deering  Jamie DeForest  Katerine Delfin  Dione Demas  Tom Demyen  Doug Denecky  Phelim Denning  Joshua Denny  Trevor Denton  Blake Deobald  Daren Derksen  Alexander Derunov  Daniel Desanko 
Louis-Marie Desjardins  Tom Desjarlais  Valery Devyatkov  Gordon Dibb  Terry Dick  Joey Dionis  Bryce Dirk  Shane Dixon  Sergey Dmitriev  John Doiron  Vasily Dokshin  Gregory Dolan  Dennis Doll  Slava Dolzhnenko  Kam Donaghy 
Clayton Doney  Dwayne Doney  Dmitry Dorofeyev  John Doyle  Euvgeniy Drachev  Bryan Drake  Doug Drake  Daniel Dubois  Joseph Dubois  Evgeny Dubro  Dillan Ducharme  James Ducharme  Frank Duchcherer  Ryan Duckworth  Don 
Dueck  Michael Duffin  Terry Duffy  Jeremy Dunaway  Andrew Dunham  Jim Dunlop  Richard Dunn  Christine Dunning  Doug Durell  Troy Durkee  Jason Dusseault  Jason Dutnall  Jason Dyck  Anatoly Dyuzhenko E Morgan Edlund  Josh 
Edwards  Les Elgert  Devin Eliason  Shaun Ell  Mark Ellingson  Ross Ellithorpe  Lana Ellsworth  Mark Elsasser  Don English  Bill Enns  Lila Enslen  Petr Eremenko  Alexei Eremin  Dmitry Erepov  Jim Erickson  Ted Erickson  Justin Erixon 
Duane Evans  Randy Evans F Mike Fahey  Matthew Falce  William Fariello  Damir Fazlyev  Sergey Fedorov  Vasily Fedorov  Inna Fedorova  Darcy Feihle  John Felker  Allan Ferguson  Robin Ferguson  Jean-Pierre Ferland  Mark Feth  Vicki 
Filewich  Michael Filgas  Tatiana Filimonova  Nikolay Filippov  Vladimir Filippov  Eric Fischbuch  Derek Fischer  Marty Fischer  Mike Fischer  Dan Flahr  Glen Flaig  Daniel Flock  Joe Flug  Jon Flynn  Anatoly Fogel  Vitaly Fogel  Russell
Foley  Andrey Fomenko  Anatoly Fomin  Calvin Foos  Roy Forbis  Scott Forsythe  Timothy Fortenberry  Kenneth Foust  Terry Fowler  Blaine Fradette  David Francis  James Francis  Richard Frank  Tristan Friedel  Kelvin Friesen 
Larry Friesen  Irwin Fritz  Gennadiy Frolov  Michael Frykberg  Mike Fudger  Brent Fuller G Renat Gabdullin  Barry Gainer  Liana Gainitdinova  Sergey Gakhov  Rebecca Gamble  Robert Garrett  Alana Gartner  Michael Gates  Preston Gault 
Kelly Gauthier  Marc Geer  Todd Gellner  Chris George  Harley Giberson  Scott Gibson  Wendy Gibson  Cornelius Giesbrecht  Vince Gillis  Sandra Givens  Vasiliy Gleba  Leonard Glover  Andrey Gluschenko  Sergey Gnusin  Valeriy Gokhaev 
Olga Goncharova  Ian Good  Anatoly Gorbenko  Sergey Gorshkov  Alexander Goryachev  Jaya Goyeche  Justin Grabo  Curtis Graham  Lorraine Graham  Clinton Green  Gilbert Greff  Natasha Grenier  Andrew Grewal  Jeremiah Griffith 
Maria Griffith  Timothy Griffith  John Grisdale  Evgeny Grishaev  Alexander Gromykhin  Matt Groot  Daniel Groshok  Sergey Grunin  Peter Gryn  David Grypuik  Kevin Grypuik  Roy Guenther  Daniel Guidinger  Martin Gurdian  Joel Gustus 
Mark Guy H Blayne Hainsworth  Dallas Hala  Robert Hall  Jeremy Halvorson  Justin Hamilton  Travis Hamilton  Joyce Hamula  Brent Hanaghan  Dan Handysides  Murray Harmon  Blair Harper  Anil HarriChand  David Hartley  Derrick Hartling 
Fred Hartnell  James Harvie  Mark Hattersley  Darcy Hauck  William Hayes  Tosha Hays  Duane Healey  David Heidinger  Kevin Heidinger  Rolf Heinemann  Karen Heintz  Greg Hennigar  Chris Herrera  Bill Heszheimer  Ron Hillis  Gerald 
Hnatiuk  Allan Ho  Kenny Ho  Corrie Hodge  Jason Hoey  Randy Hoffer  Ken Hoffman  Matthew Hoffman  David Holderness  Jason Holmes  Brent Holt  Mike Holtzman  Michael Hoose  Donald Hoover  Jesse Horan  Claude Horner  Fred 
Hotte  Darren Houben  Craig Houghton  Jacob Hovius  Chad Howard  David Howerton  William Howes  Vern Hrenyk  Treena Hubert  Scott Hubly  Brett Huckerby  Ron Hudson  Blair Humphrey  Rod Humphrey  Gabe Hunter  Jeff Hunter 
Jeff Hurley  James Hurson  Chad Hutchings  Mark Hylton I Artur Ibraev  Tetyana Illichova  Arvin Imhoff  Derek Ingraham  David Inman  Vladimir Ivanov  Vladimir Ivarovsky  Bill Iwasiw J Chris Jackman  Sean Jackman  Blake Jackson 
Lenore Jacobson  Kurt Jagert  Michael James  Richard James  Steven James  Dean Jamieson  Garnet Jarvis  Michael Jarvis  Herb Jenkins  Scott Jensen  Eric Johnson  Graham Johnson  Mark E. Johnson  Wayne Johnson  Doug Johnston 
Corey Jones  James Judson K Alexander Kamynin  Kamil Karimov  Val Kary  Rob Kaschl  Alexander Kashin  Pavel Kashin  Allen Kaupp  Jordon Kejr  Jason Kelley  Jeremy Kemp  Shirley Kennedy  Matthew Kerr  Greg Kessler  Lonnie Key 
Tatiana Kharchenko  Damir Khaziev  Alexander Khovanskiy  Vladimir Kilkin  Alexander Kiryushin  Sergey Kiselev  Roger Kitt  Ben Klassen  Paul Klassen  Grant Knibbs  Claire Knight  Kyle Knutson  Maxim Knyazev  Andrey Kolevatov 
Alexander Kolos  Mikhail Kolos  Alison Kolotinsky  Pavel Kondratov  Andrey Kononok  Mikhail Kononov  Jon Konrad  Slava Korolev  Jason Koskela  Wally Kozak  Pavel Kozlov  Elgan Kracht  Yuri Krasilnikov  Scott Krasowski  Jason Krause 
Pavel Kravchenko  Ryan Kreller  Shaun Kristianson  David Krizsan  Jason Krushen  Andrey Krylov  Yuri Kudryashov  Gary Kuiken  Alexei Kuleshov  Oleg Kulikov  Vasiliy Kulzhik  Leonid Kupreyev  Vladimir Kurochkin  Chad Kushniruk  Jesse 
Kushniruk  Liana Kutlayarova  Vasily Kuznetsov  Vladimir Kvak  Edward Kwan L Patty Lacoursiere  Ian Laczkowski  Marcel Laferriere  Shawn Laferriere  Richard Laforce  Warren Lagace  Lawrence Lal  Ken Lalonde  Mark Lamontagne 
Jim Lane  Pavel Lankovsky  Ian Lansall  Marcel LaPlante  Dmitriy Larichev  Dale Larsen  Barb Larson  Brody Lasante  Jordan Lasante  Adam Latos  Ken Lavalle  Alexey Lavrov  Joseph Lawrence  Patricia Lawton  Evgeny Lebiga  Bill Ledyit 
Kyle Lehr  Chad Leier  Jeannie Leighton  Kelly Leipert  Ryan Leishman  Adrian Leismeister  Darwin Leismeister  Jack Leiva  Sergey Leshkevich  Blayne Levesque  Lindsey Levins  Brandon Lewis  Lance Lewis  Robert Lewis  Pierre LHoir 
Oleg Lifanov  Yuri Limanov  Dave Lindeman  Darrell Lindstrand  Jody Linfield  Darren Lintick  J.R. (James) Linville  Darcy Lisafeld  Kelly Lishchynsky  Bill Llewellyn  Eric Lobban  Nathan Longmuir  Chris Lonson  Kelly Lonson  Mike Lorenson
Neil Lowes  David Lucas  Mark Lucas  Steven Luchak  Kim Ludtke  Ivan Lugovenko  Alexei Lukianov  Michael Lumley  Ken Lupyczuk  Lyle Lust  Oleg Lyashenko  Kenneth Lynn  Richard Lyons  Rob Lysak M Tina MacDonald 
Shane MacDougall  Daniel MacIntyre  Alex Mack  Chris Mackay  Sean MacKay  Terry MacLeod  Kevin MacPhee  Gary MacPherson  John MacPherson  Clyde Maguire  Kerry Mahar  Michael Mahar  Vladimir Makarov  Larisa Makarova 
Vladimir Makrushin  David Malott  Igor Malyar  Elman Mamedov  Grigory Mamedov  Sergey Manaenko  Jeffrey Mangels  Colby Mann  Dwayne Mann  Garnett Mantie  Robert Manuel  Ron Marceau  Pavel Marinin  Shawn Marquis  Larry 
Marr  Bill Martens  Kelsey Martens  Ricky Martin  Anthony Martinez  Michael Martinez  Kelly Mason  Kelly Mast  Mark Mast  Shane Mathews  Jean Claude Mathys  Chantel Matuska  Bryce Mauch  Steven Maxwell  Brent Mayo  Ron 
McCartney  John McConnell  Liz McConnell  Chris McCorkell  Chris McCulley  Phil McDavid  Cody McDonald  Randy McDonald  Brian McElroy  Evan McEwen  Wendy McFawn  Andrew McKay  Chris McKay  Brad McKenna  Lindsay McKinstry 
Scott McLean  Devin McNeill  Malcom McNeill  Jason McPherson  Joey McPherson  Ross McQueen  Matthew Meadows  Donald Meadus  Oleg Medvedev  Tom Medvedic  Danny Meier  Craig Meissner  Mandee Melville  Brent Merchant 
Michael Miedowicz  Matt Mignault  Sergey Mikhailov  Vadim Mikhailov  Yuri Mikhailov  Elena Mikhaylovskaya  Luke Milberry  Gord Milgate  Todd Millard  Brett Miller  Derrick Miller  Shane Miller  Shaun Miller  Stanislav Milyutin  Chad 
Mitchell  Alexander Modin  Roman Mokhov  Velda Mombourquette  Desmond Montgomery  Roy Montoya  Beau Moore  Betty Anne Moore  Danny Moore  Justin Moore  Rick Moore  Trevor Moore  Jorge Morales  Paul Morgan  Andrew Morris 
Earl Morrison  Scott Morrissette  Adam Mosset  Dmitry Motov  Brent Mulner  Craig Murphy  Doug Murphy  Bernard Murray  Vadim Musin  Rafil Mustafin  Travis Mutch  Rodney Muth  David Mykyte  Ed Myles N Anusorn Narong  Talgat 
Naurzov  Anatoly Nazarov  Kathleen Neault  Calvin Neitz  Larisa Neklyudova  Daniel Nelson  Kerry Nerbas  Alicia Nesbitt  Jason Nesdoly  Jayden Nestibo  Mike Neufeld  Sean Newhook  Jason Nichols  Dave Nicholson  Troy Nickel  Nathan 
Nicklas  Darren Nicol  Chad Nidd  Lambert Nieuwenhuis  Andrey Norets  Mark Norlin  Cory Noseworthy  Dwayne Noseworthy  Flyur Nuriakhmetov  Ildar Nurkaev  Rob Nyland O Darrin Oakes  Jason Oberhaus  Wesley Oesch  Michael Olinek 
Cindy Olivas  Steve Oliver  Valeriy Omelchak  Rob OReilly  Michael Orosz  Rick Ortiz  Sergey Oryshechko  Vitaly Oslin  Yuri Osokin  Brandon Ottinger  Jimmy Ouellet  Kevan Ouimet  Dave Oursien  Alexey Oxendler  Bill Ozmun P Wences 
Pacheco  Blake Pachenski  Brad Page  Justin Paisley  Sergey Palikov  Michael Pancel  Andrey Panchekhin  Roland Paquette  Robert Paranych  Sean Park  Derek Parker  Steven Parker  Eldon Parks  Anatoly Paromov  Gordon Pasiciel  Vas
Pastukhov  Brock Paulson  Vasily Pavlechco  Bruce Payne  Mark Payne  Ken Pearce  Robert Pearce  Derek Pearson  Doug Pearson  Ronald Peddle  Ronnie Peddle  Darrell Pederson  Vasily Peil  Jamie Peirens  Michel Pelletier  Tyson Perez 
Kelly Periard  Vladimir Perov  Dean Perry  Sergey Pershin  Svetlana Pershina  Sean Perszon  Ryan Petersen  Terry Petersen  Alexei Petruk  Darlene Pettit  Abe Petzoldt  Darryl Philipchuk  Maurice Philippot  Murat Phitikov  Kurtis Pidlinsy 
Matt Piechnik  Craig Pierrard  Sheldon Pike  Garett Pilgrim  Andrey Pindyurov  Anna Pinkenstein  Juan Pino  Maxim Pisarevsky  Bronislav Pleskach  Sergey Plesnevtsov  Denis Plesovskih  Vladimir Podkin  Rick Podmoroff  Roland Poirier 
James Pollmiller  Alexander Poltoratsky  Alexander Popov  Garry Porochnavy  Yuri Portyankin  Pavel Poshivach  Tracy Potskin  Jamie Potter  Wayne Potter  Doug Potts  Harvey Pratt  Jason Pratt  John Pratt  Ted Pratt  Brennan Prestie 
Nicole Pretty  Tyler Price  Andrey Prokopiev  Vasily Protazanov  Aaron Puck  Curt Pudwell  Shay Pudwell Q Joshua Qually  Rodelta Quemuel  Dustin Quinlan R James Raafs  Graham Racz  Richard Radway  Todd Rainville  Flaris Rakhimov 
Ildus Rakhimov  Nail Rakhmatullin  Watson Ralph  Dain Ramey  Roddy Ramey  Douglas Ramsay  Brian Ramsey  Curtis Rausch  Wayne Reaney  Kevin Redelback  Errin Reed  John Reed  Kevin Reelie  Leo Reid  Rick Reid  Ted Reimer 
Trevor Reinhardt  Josh Reinhart  Nathan Rempel  Nathan Renfro  Michael Reno  Timothy Rich  Jay Ridenour  Chris Riepma  Ian Rigby  Stephen Rikstad  Tawnya Ring  Clinton Rivet  Chris Robak  Chad Robertson  Kier Robertson  Dale 
Robinson  David Robinson  Jason Robinson  Jose Rocha  William Rockey  John Rodrigues  Petro Rodriguez  Richard Jr. Rodriguez  Lisa Rogers  Gary Rokosh  Augstin Rosales-Rodriguez  Jose Rosales-Rodriguez  Cameron Rose  Jason Rose 
Wade Rose  John Ross  John A. Ross  Chris Roth  Nick Rowe  Kevin Russell  Jeff Russill  Skip Rutledge  Mike Ruttan  Merlin Ruud  Dalbert Rycroft  Brian Ryder  Larry Ryder S Olesya Sadikova  Hollie Sadler  Ian Sager  Igor Saifullin 
Varis Saitgalin  Paul Salaz  Karen Salazar  Alexander Salazkin  Carlos Salinas  Dmitriy Salmin  Alexander Salu  Jose Samaco  Sergey Samoilov  Sean Sanderson  Jamey Sandquist  Mitchell Sandy  Dmitry Sannikov  Gennady Sapozhnikov 
Ronald Sasser  Judy Savrtka  Rosa Scagnetto  Daniel Schaefer  Derrick Schafer  Guy Schappert  Corey Schick  Don Schick  Russ Schimetz  Russell Schimetz  Lyndon Schlitter  Adam Schmalz  Anton Schmalz  Tanelle Schmautz  Kody 
Schmidt  Michael Schnitman  Mark Schultz  Gino Scott  Jason Scott  Michael Scott  Shawn Scott  William Scott  Curtis Seaman  Spencer Searcy  Clay Searle  Doug Seefried  Alexander Semenov  Mikhail Semenov  Yuri Semenov  George 
Semenyuk  Yuri Semochkin  Steven Senkiw  Anatoliy Sergeev  Sergey Shabanov  Gulya Shaigardanova  Yuri Shakhalov  Damir Shakirzyanov  Bryan Shambaugh  Ilmat Sharipov  Charles Sharpe  Courtney Sharpe  Alla Shefer  Yuri Shein 
Barry Shepherd  Dawn Sherba  Vitaly Sherbanev  Andrey Sherekin  Alexey Shevtsov  Jennifer Shi  Jay Shick  Yuri Shimbarev  Murray Shinski  Alexander Shipilin  George Shipillin  Alexander Shirokalov  Alexander Shlenskih  Tatiana Shubina 
Alexei Shukin  Alexei Shulgin  Vladimir Shuliko  Dmitry Shushpanov  Steve Siebenga  Oleg Sikora  Yuri Silin  Ivan Silkin  Sergey Simakov  Alexander Simukhin  Darwin Sincennes  Dennis Siron  Matt Siron  Kevin Skinkle  Gradon Skjerven 
Rodney Skomoroh  Pavel Skorobogatov  Rod Skorobohach  Brent Sleeking  Gord Sleeking  Jeff Smart  Chris Smethers  Nikolay Smirnov  Sergey Smirnov  Art Smith  Bryant Smith  Colin Smith  Danny Smith  Les Smith  Lorne Smith 
Mark Smith  Michael Smith  Mike E. Smith  Mike J. Smith  Ryan Smith  Sean Smith  Alexander Smolonogov  Nathen Snelson  Euvgeniy Sobchak  David Sokoloff  Sasha Sokolov  Kamuela Solomon  Vitaliy Solovyov  Owen Sostad  Jose 
Ramon Soto Jr.  Daniel Souillet  Daniel Spalding  Stephen Srubowich  Garner Stack  Brad Stadnyk  Jon Staehr  Darren Stahl  Jeffery Standiford  Mark Stang  Devin Stark  Michael States  Marina Statnikova  Justin Steele  Michael Stephenson 
Robert Stephenson  Aaron Stewart  Kelly Stiefel  Chance Stimson  Nadia Stolitenko  Dallas Storey  Gord Strange  Wade Strong  Howard Stuart  Vladimir Sulagaev  Geoffrey Sundby  Sergey Suntsov  John Super  Kevin Sutherland  Rob 
Sutherland  Igor Svirney  Vitaly Svyatkin  Lawrence Swainston  David Switner T Lidiya Tagirova  Victor Taktaev  Co Tang  Yuriy Tarasov  Mark Taylor  Chris Tchir  Egor Tebyakin  Angeline Teh  Kevin Telosky  Evgeny Terentiev  Dawit 
Tesfamariam  Darren Thatcher  Brett Therriault  Lane Therriault  Rawlyn Thiessen  Martijn Thijssen  Anthony Thomas  Dennis Thomas  Al Thompson  Eddie Thompson  Chad Thomson  Jerome Thurnau  Troy Thye  Barry Tiller  Adam Tinant 
Wilbert Tindale  Konstantin Tkachenko  Vladimir Tkachenko  Vladimir Tkachev  Vladimir Todaraki  Igor Todorov  Cliff Toews  Maxim Tokarev  Cameron Tombs  Vladimir Tomilov  Lance Tomshack  Slava Topalo  Jason Tourchin  Shane Tremblay 
Anatoly Tretiakov  Victor Tretyak  Richard Trost  Trenton Truman  Euvgeniy Trusov  Rafal Trzeciak  Alexander Tsipovyaz  Jackie Tsuji  Victor Tsymbalov  Teddy Tuilaepa  Damir Tukaev  Kara Tumback  Myo Tun  Jeff Turner  Stuart Turner 
U Mark Udal  Alexander Ulshin  Dwayne Ureiner  Alexander Ursu V Ravil Valiakhmetov  Derek Van Altena  George Van Altena  Greg Van Den Brink  Andrew Van Ham  Christopher Van Someren  Jeremy Van Veen  Blake Vancuren  Cole 
Vandenberg Jeffery Vandenberg  Chip VanderPol  Stanley Vandivere  Genadiy Vasilyev  Jason Vath  Alexander Velichko  Alan Vergouwen  Don Vermeeren  Lane Vermunt  Mike Verokosky  Alexander Vesterovsky  Jose Villacorta  Leo Villeneuve 
Martin Villeneuve  Nancy Vitale  Oleg Vladimirov  Casey Volden  Matthew Vollrath  Vladimir Vorona  Alexander Vylegzhanin W Jim Waddington  Ken Waddington  Preston Wald  James Waldner  Danny Walker  Beverley Wall  Dan Wallace 
Gerry Wallington  Cameron Walls  Ralph Walter  Ben Ward  Charles Ward  Ron Ward  Kevin Warnke  Jeff Warrilow  Thomas Watson  Linda Watts  Alex Wawia  Val Weaver  Rick Webster  Paul Wedman  Dennis Weiss  Justin Weiss  Robert 
Wells Warren Wells  Yvonne Westcott  Shawn Whitcher  Angeline White  Ken White  Josh Wiedemann  Jacob Wierenga  Kelly Wieser  Mike Wild  Joel Wilken  Dale Wilson  Scott R. Wilson  Shane Wing  Sheldon Winsor  Garfield Wiseman 
Keith Wock  Bill Wolff  Glen Wolford  Travis Woodland  Casey Woodmansee  Dave Woods  Ossie Wozny  Marten Wright  Lance Wunsch Y Hugh Yake  Alexie Yashnev  Anton Yatskov  Mark Yeomans  Dwayne Young  Joshua Young  Mike 
Young  Stephen Young  Bradley Youngs Z John Zacklene  Tatiana Zaeva  Vitaliy Zalevskiy  Daryl Zamko  Shawn Zamko  Andrew Zanski  David Zapotichny  Anastasia Zarubina  Doug Zatorski  Alexandr Zavatskiy  Erik Zeek  Grigory Zemlyanoi 
Alexander Zemtsov  Rusty Zentner  Holly Zhang  Pavel Zhovnir  Anton Zhukov  Anton Zhulin  Anatoly Zhumykhin  Richard Ziegler  Vladimir Zlobin  Lloyd Zmaeff  Wyatt Zoerb  Yuri Zolotukhin  Joe Zuccatto
Calfrac recognizes that to be successful in providing the 
best in specialty pressure pumping services, customers 
require more than technology. They require global support, 
superior service and best practices that offer a model for 
success. They require the proficiency, technology and 
capability of an industry leader. Calfrac has the expertise
and reach to deliver this complete solution.
         Since our Companys inception in 1999, Calfrac Well Services Ltd. has become a leading independent
         provider of specialty designed fracturing, coiled tubing, cementing and well servicing solutions 
         that are designed to increase the production of hydrocarbons from wells drilled throughout 
         Western Canada, the United States and Russia. Each of our service lines offers new opportunities 
         for our Company to develop innovative equipment and technologies that improve operating 
         efficiency, reduce environmental impact and deliver superior results, as evidenced by our 
         expanded capabilities to meet the growing demand in the deeper, more technically challenging 
         basins of Western Canada. We are able to respond quickly to customer needs and new opportunities 
         by deploying our best-in-class solutions, equipment and personnel to markets as required with 
         minimal time and cost.
         Our goal is the same today as it was when we began over seven years ago: to safely and efficiently
         provide the highest degree of expertise, innovative technology and service to our customers. 
         The concept is simple, but the implementation is not. Although we compete in an arena with 
         companies several times our size, our success is attributable to our ability to meet the needs of 
         our customers by providing SERVICE FIRST along with TECHNOLOGIES THAT WORK IN THE FIELD.


Calfrac is a Canadian corporation headquartered in Calgary, Alberta with regional offices 
in Denver, Colorado and Moscow, Russia as well as operating bases located in Edson, 
Grande Prairie, Medicine Hat, Red Deer and Strathmore, Alberta; Grand Junction and 
Platteville, Colorado; Beebe, Arkansas; as well as Khanty-Mansiysk, Noyabrsk and 
Purpe, Russia. The common shares of Calfrac Well Services Ltd. are listed for trading 
on the Toronto Stock Exchange under the symbol CFW.











                                   CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 1
           ANA

                        During 2006, Calfrac expanded its presence in the 
                        fracturing, coiled tubing and cementing service markets 
                        of Western Canada with the construction of new state-of- 
                        the-art equipment. We believe that the long-term outlook 
                        for these markets remains very positive as the industry 
                        continues to drill for unconventional gas reserves in coal, 
                        shale and tight gas reservoirs. These reservoirs can be 
                        found throughout the Western Canadian Sedimentary Basin 
                        and require innovative solutions to stimulate production.


                                                                     Calfrac has responded to this market opportunity 
                                                                     by expanding the pumping capacity of its frac 
                                                                     operations to service the deeper basin mar 
                                                                     northern Alberta and northeastern Britis Columbia,
                                                                     designing specialized equipment and      g innova-
                                                                     tive fluid systems and engineering       s. Thi
                                                                     strategy provides our Company wiompetitiv       e
                                                                     advantage and has resulted in       ently strong
                                                                     revenue and profit growth. By       d of the first
                                                                     quarter of 2007, we expect to berating 16 
                                                                     conventional and four coalbed meane fracturing
                                                                     spreads, 11 coiled tubing         17 cementing 
                                                                     units in Canada.




PG 2 > CALFRAC WELL SERVICES LTD. Owc > 2006 ANNUAL REPORT
PG 4 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPOR
   NITED A



Calfrac achieved record revenue and net income in the 
United States during 2006 primarily as a result of 
additional fracturing equipment and strong demand for 
its services. We entered the U.S. Rocky Mountain region 
in 2002, and during 2006 we continued to grow these 
operations by increasing our number of fracturing 
spreads by two for a total of five spreads.




                 Calfracs expansion in the United States was focused 
                 in the Grand Junction area of western Colorado to 
                 service the deep, multiple fracturing requirements of 
                 the tight sand gas wells in the Piceance and Uintah 
                 Basins. Eastern Colorado was also an area of growth 
                 as the Company secured large volume contracts with 
                 major operators. Late in the year, we finalized a long- 
                 term contract with a leading oil and gas company to 
                 service a new fracturing market encompassing 
                 Arkansas and eastern Oklahoma, and as a result, we 
                 opened a new operating base in Beebe, Arkansas in 
                 early 2007 to facilitate this expansion. It is anticipated 
                 that additional opportunities will be available to Calfrac 
                 in these new shale and tight gas markets as these 
                 basins develop. During the first quarter of 2007, we will 
                 deploy five conventional fracturing spreads from our 
                 three United States operating bases.
                          CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 
During 2007, we plan to operate two fracturing  
spreads and five coiled tubing units in Western  
Siberia. These expanded and more diversifie  
operations have reached a critical mass  
expected to drive further improvement in the  
Companys financial and operating performance  
in this market.
RUSSIA
Calfrac commenced operations in the Russian well  
services market during 2005, and by the end of 2006 the  
Company was operating one fracturing spread and three  
coiled tubing units in Western Siberia. A second fracturing  
spread was deployed to our newest operating base  
located in Purpe, Western Siberia in February 2007. Two  
additional coiled tubing units are expected to be deployed  
and operational by the end of the first quarter of 2007.  
This equipment will service term contracts with two of  
Russias largest users of pressure pumping services.
n
a
d
are
PG 6 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT

Years Ended December 31,
2006	
j
2005
Change
except per share and unit dat
($)
($)
(%)	
I
,
426,418	
1
314,325
36
135,362
109,098
24
72,450
60,113
2
2.00
1.98
101,932
2.81
2 23
26
2.79
2.20
27
38
109,533
79,611
3.02
2.20
37
3.00
2.18
38
155,478
97,614
59
31,225
39,396
(21)
454,190
303,510
234,021
30
804,184
36,286
36,216

	
 Revenue
	
Gross margi
(1)
Cash flow from operations (2)
Capital expenditures
Working capital
Total assets
hareholders equity
Market capitalization at year-end	
 Weighted averag hares (basic) outstanding (#
(#)	
(#)	
(%)
Fracturing spreads
Conventional fracturing	
21	
17	
24	
 4
25
Coiled tubing units	
14	
11	
27
13	
9	
44
QUARTERLY RESULTS >
March 31,
June 30,
September 30,
December 31,
Quarters Ended
2006
2005
2006
2005
2006
2005
2006
2005
($)
($)
($)
($)	
E
($)
($)	
E
($)
($)
(000s, except per share data)
126,010
115,112
118,322
--80,694 -'
44,619 =
66,973
77,377
-
111,634
Gross margin (1)
49,927
32,437
14,446
7,630	
`
36,500
25,694
34,488
43,336
Net income (loss)
34,556
21,670
1,569
19,418
12,947 '
16,907
27,372
Per share
bas
0.95
0.60
0.04
0.54
0.36
0.47
0.75
0.94
0.59
0.04
0.53
===0.35
0.46
0.75
Cash flow from operations (2)
41,656
26,015
7,208
27,560
18,503 =
25,507
33,794
1.15
0.72
0.20
0.76
0.51
0.70
0.93
diluted
1.13
0.20
0.76
0.51
0.70
0.92
E
EBITDA (3)
42,736
25,339
8,761
1,907	
29,614
18,234
28,421
34,13
E
E
..~
Per share  basic
1.18
0.70
0.24
0.05	
0.82
0.50
0.78
0.94
E
E
E
1.16
0.24
0.05	
0.81
0.50
0.78
0.93
1. Gross margin is defined as revenue less operating expenses excluding depreciation and amortization. Gross margin is a measure that does not have any standardized  
meaning prescribed under GAAP and accordingly may not be comparable to similar measures used by other companies
2 Cash flow is defined as funds provided by operations  as reflected in the consolidated statement of cash flows Cash flow and cash flow per share are measures that 
	
with additional information regarding the Compa  
Management utilizes these measures to assess the Company s ability to finance operating activities and capital expenditures Cash flow and cash flow per share are not
	
measures that have any standardized meaning prescribed under GAAP, and accordingly, may not be comparable to similar measures used by other companies
3. EBITDA is defined as income before interest, taxes, depreciation and amortization. EBITDA is presented because it is frequently used by securities analysts and others fo  
valuating companies and their ability to service debt EBITDA is a measure that does not have any standardized meaning prescribed under GAAP and accordingly may
PG 8 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT

                                                          pressure pumping services
                                                          in our market areas as measured
                                                          by customer satisfaction, operational 
                                                          excellence, financial returns and












500 Reve    ($ millions)
400                                                                                           426.4
300                                                                      314.3 
200                                                  241.4
100           96.1               156.6 
  0                  2002                2003                2004                 2005               200
Having met our goals over the course of 2006, 
Calfrac continues to move forward to address 
the new operating and geographic opportunities 
presented by the global oilfield services market
Letter to Shareholders












                        We believe that success in this endeavour lies 


                        in the fundamental values that Calfrac brings 


                        to every initiative: that SERVICE FIRST and 


                        TECHNOLOGIES THAT WORK IN THE FIELD are, 


                        first and foremost, about making our customers 


                        successful. Its about working in partnership with 


                        our customers to deliver services and solutions 


                        that are right for them. Its about outstanding 


                        customer support, operating excellence and 


                        industry knowledge. These values have made 


                        Calfrac the industry leader it is today.


























    We are very satisfied with this years results.        > increasing revenue 36% to $426.4 million;

    Our service lines continued to lead the market in      > growing net income 21% to $72.5 million 

    quality of service in Canada, with significant growth    or $2.00 per share (basic);
    in the Rocky Mountain region of the United States      > improving operating cash flow 26% to 
    as well as Western Siberia in Russia. During 2006,       $101.9 million or $2.81 per share (basic); 
    we furthered our business model of operational and       and
    geographic diversification through the deployment 
    of additional fracturing spreads, coiled tubing units  > increasing EBITDA 38% to $109.5 million or 
    and cementing units to our operating regions.            $3.02 per share (basic).
                                                        For the year ended December 31, 2006, average 
    FINANCIAL HIGHLIGHTS >                              consolidated fracturing revenue per job increased 

    Calfrac achieved record financial performance as    26% to $56,759 from $45,006 recorded in 2005. 
    a result of a strong oil and gas price environment, Improvements in operational efficiency, equipment 

    an expanded fleet of service equipment and careful  utilization and market share all positively affected 
    execution of the Companys business strategy. Year- this key performance indicator.

    over-year financial gains included:




                                                                                CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 
 Letter to Shareholders





          Consolidated Fracturing Revenue Per Job ($)

     60,000


     50,000


     40,000


     30,000


     20,000


     10,000


        0









          OPERATIONAL HIGHLIGHTS >                           Russia

          Calfrac initiated a focused capital program during    > Opening a new operating base in Khanty- 

          2006 that totaled $155.5 million, the largest in the    Mansiysk, Western Siberia.

          Companys history, to enhance our global fracturing 
                                                                > Deploying our first fracturing spread and 
          and coiled tubing equipment fleet as well as to         coiled tubing unit to the Khanty-Mansiysk 
          increase the scale of our Canadian cementing 
                                                                  region.
          operations. This extensive and diversified equip- 
          ment inventory enables on demand deployment         > Receiving work from two of Russias 

          of assets to our three global operating regions as      largest oil and gas producers for the 
          required, which, together with our experienced          provision of services from two fracturing 

          workforce, is a key competitive advantage. During       spreads and five coiled tubing units 
          the year, our operational growth included the           in 2007.

          following highlights.                              OUR FUTURE GROWTH >

          Canada                                             Our key to growth is looking beyond near-term 

            > Expanding our fleet of equipment across        gains and investing in the future.

               all services lines.                           Working with our Customers
            > Adding a new operating base in Edson,          Our customers, as well as the size of jobs that we 
               Alberta in order to better service our grow- 
                                                             are being asked to complete, are getting bigger and
               ing operations in the west central regions    we need to partner with them in new and different 
               of the province.                              ways in order to grow our share of their business. 
            > Maintaining long-term contracts for three      We continue to add the talent and resources 

               of our fracturing spreads to satisfy          necessary to capture the increasing demand for 

               demand in the coalbed methane and             deep zone operations in the Western Canadian 

               shallow gas fracturing markets.               Sedimentary Basin, the United States and Russia. 

          United States                                      To that end, we will further expand the pumping 

                                                             capacity of our fracturing units, convert shallow 
            > Deploying two additional multi-pumper          fracturing and coiled tubing units to operate in 
               fracturing spreads to the U.S. Rocky          these deeper, more technical areas and continue 
               Mountain region.
                                                             to develop new fluid systems and engineering 
            > Signing a long-term take-or-pay contract       solutions to enhance operational performance and 

               to provide fracturing services to a new       efficiency. We are investing more resources to 

               operating district encompassing Arkansas      assist our customers and to help us identify new 

               and eastern Oklahoma.                         opportunities for mutual growth.





PG 10 > CALFRAC WELL SERVICES LTD. Owc > 2006 ANNUAL REPORT
Extending our Service Lines and Customers to             Commodity Price Volatility
New Geographic Areas                                     Over the past nine months, the energy industry has 
The focus internationally is to build our service lines  experienced an erosion in natural gas prices, 
into truly global offerings. We are currently operat-    thereby affecting drilling activity levels. Calfrac is 
ing in the worlds top three fracturing markets and      known for proactively working with its customers to 
are looking to provide our full suite of services to     respond to these shifts in operational activities. For 
each of these regions. We look to grow our Company       example, our focus on achieving high utilization 
by further sourcing new customers, expanding cur-        rates and on-the-job efficiencies has created an 
rent offerings to our existing client base and seizing   environment that reduces costs for the service 
opportunities that will extend our reach into new        provider and the customer. We continue to work 
international markets. We will also continue to proac-   with our customers to develop and implement 
tively review the industry for acquisition opportunities viable solutions to the changing demands of the 
that meet our equipment and safety standards as          energy services business by providing exceptional 
well as our strict return on capital criteria.           service, innovative technologies and state-of-the- 
THE CHALLENGES WE FACE >                                 art equipment.
We continue to tackle the challenges we face head        LOOKING FORWARD >
on and use them as our competitive edge.                 As we look to the future, we are keeping a sharp 
                                                         eye on the climate of the global energy industry. At 
Workforce                                                Calfrac, we believe our business model that focuses 
Given the current economic and industry climate,         on pressure pumping service lines and a global 
we struggle primarily with finding and retaining         reach allows us to proactively adjust to industry 
a reliable, qualified and dedicated workforce. We        activity and commodity price fluctuations as 
recognize that a job is more than a pay cheque and       required. Currently, it would appear that high levels 
that people want to work for an employer who             of natural gas storage in North America may have 
respects them as individuals, puts their safety and      a negative impact on domestic drilling activity levels 
health first, creates advancement opportunities          in 2007. However, with a strong balance sheet, 
through training and education, encourages team-         a sophisticated strategy for operating and growing 
work, welcomes ideas and nurtures a collaborative        our business and the strong competitive advantages 
atmosphere. Good pay and benefits are important,         that come with being an industry leader, we believe 
but so are ethical business practices. These are the     we have the capacity to ride out any downturn that 
qualities that make Calfrac a great place to work.       may occur in the energy sector.






























                                                                                   CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 1
 Letter to Shareholders











                                   Our objective is to continue to anticipate 


                                   and respond to our customers needs with 


                                   the superior operating equipment, best 


                                   practices, global support and expertise they 


                                   require to be successful with our solutions, 


                                   which will translate into improved business 


                                   performance for Calfrac.















          Planned capital expenditures for 2007 are antici-   This is a tremendously exciting time for Calfrac. 
          pated to total approximately $96 million, of which  We clearly have momentum and we have great 
          $76 million relates to new equipment, and will be   people who are passionate about continuing that 
          focused on staying the course with our strategy     drive. We are looking for another strong year in 
          of increasing the pumping capacity in Canada to     2007, and we are putting new energy behind all 
          better serve the deep basin markets in northern     service lines to increase their growth in the years to
          Alberta and northeastern British Columbia, expand-  come. Our objective is to continue to anticipate and 
          ing our United States fracturing operations into    respond to our customers needs with the superior 
          Arkansas and eastern Oklahoma and opening and       operating equipment, best practices, global support 
          equipping a new operating base in Purpe, Western    and expertise they require to be successful with 
          Siberia to support the increasing scale of our      our solutions, which will translate into improved 
          Russian operations. By the end of the first quarter business performance for Calfrac.
          of 2007, Calfrac expects to have 27 fracturing      On behalf of the Board of Directors,
          spreads, 16 coiled tubing units and 17 cementing 
          units operating globally.

          We believe we have the financial flexibility, the 
          strategy and the team in place to sustain the kind 
          of financial and operational performance that our   RONALD P. MATHISON 
          stakeholders have come to expect from Calfrac.      Chairman

          Behind our performance is a team of extraordinary 
          board members, management and staff who stand 
          at the core of Calfracs success. We extend to them 
          our sincere thanks for their ongoing dedication to  DOUGLAS R. RAMSAY
          this Company. To our growing global base of busi-   President & Chief Executive Officer
          ness partners, loyal customers and shareholders,    February 26, 2007 
          we thank you for your continued support and         Calgary, Alberta
          confidence in Calfrac.




PG 12 > CALFRAC WELL SERVICES LTD. Owc > 2006 ANNUAL REPORT
200
0
OPERATIONS REVIE
Operations Review











                        Calfrac develops and manufactures a unique


                        fleet of specialty designed equipment and utilizes


                        innovative technologies with four key operating


                        factors in mind: efficiency, performance, reliability


                        and environmental protection.








   SERVICE LINES >                                       equipment fleet included 21 conventional and 
   Calfrac is a leading independent provider of oilfield four coalbed methane (CBM) fracturing spreads, 
   pressure pumping services, including fracturing,      nine shallow and five deep coiled tubing units and 
   coiled tubing, cementing and other well stimulation   13 cementing units. This extensive and diversified 
   services, which are designed to enhance the recov-    equipment inventory enables the Company to 
   ery of hydrocarbons from oil and gas reservoirs in    deploy equipment and personnel to geographic 
   Canada, the United States and Russia. Calfrac         regions as required with minimal time and cost.

   develops and manufactures a unique fleet of 
   specialty designed equipment and utilizes innova-     CANADIAN OPERATIONS >
   tive technologies with four key operating factors     Calfracs CBM and shallow gas fracturing opera- 
   in mind: efficiency, performance, reliability and     tions in southern Alberta lagged expectations due to
   environmental protection.                             the impact of lower natural gas prices, wet weather 
                                                         and CBM land access, licensing and infrastructure 
   During 2006, Calfrac significantly expanded its       issues. Consequently, the Company reallocated 
   global fracturing and coiled tubing equipment fleet   some of its equipment and personnel to other 
   as well as the scale of its Canadian cementing        regions within this market that were active in deep 
   operations. At December 31, 2006, the Companys       basin projects. By year-end, Calfrac was operating
      Operations Review









































          15 conventional and four CBM fracturing spreads       opened a new state-of-the-art automated bulk 

          in the Canadian market. In keeping with the           cement plant in Red Deer, Alberta. This modern 

          Companys philosophy of securing a certain level of   facility more than doubles the Companys previous 

          business with long-term contracts, in March 2006      blending capacity with the added advantages of full 

          a new multi-year take-or-pay contract was signed      automation, improved blend quality and an environ- 
          with a major independent Canadian oil and gas pro-    mentally friendly vacuum system. In December, 

          ducer for the provision of a conventional fracturing  a new satellite cementing base and a staging base 

          spread dedicated to Western Canadas deep basin       for fracturing and coiled tubing operations opened 

          market. Calfrac currently has long-term contracts     in Edson, Alberta in order to extend the Companys 

          on four of its Canadian fracturing spreads that will  operating reach to a growing list of customers in 

          support a minimum level of activity during 2007.      the region. During the first quarter of 2007, the 

          Throughout the upcoming year, the Company expects     Company plans to add four cementing units to its 

          to add one conventional fracturing spread and signif- operating fleet.

          icant horsepower to its Canadian operations.
                                                                UNITED STATES OPERATIONS >
          The Companys coiled tubing operations also 
                                                                During the past year, Calfrac progressed its global 
          continued to expand in 2006. Two new deep coiled      expansion strategy by deploying additional equip- 
          tubing units were added to better service Canadas 
                                                                ment to the Rocky Mountain region of the United 
          growing intermediate and deep basin operations. 
                                                                States. In order to better service the Companys 
          At December 31, 2006, the Company had nine 
                                                                growing base of customers in the Grand Junction 
          shallow and two deep coiled tubing units operating    district, two additional multi-pumper fracturing 
          in Canada. The Company anticipates that these 
                                                                spreads were deployed during the year for a total of 
          operations will continue to become a more signifi-    five conventional fracturing spreads operating in the
          cant portion of its overall business.                 U.S. at year-end. In addition, a long-term take-or- 

          Calfrac continued to enhance the scope of its         pay contract was signed late in the year with a 

          cementing operations in Western Canada with a         major U.S. oil and gas company to provide fracturing 

          strategic focus on the deeper, more technically       services to a new operating district encompassing 

          challenging basins of northern Alberta and north-     Arkansas and eastern Oklahoma. As a result, it is 

          eastern British Columbia. During 2006, the            expected that a multi-pumper fracturing spread 

          Company increased its cementing equipment fleet       will be reallocated from the Companys Grand 

          from nine at the beginning of the year to 13 at       Junction district to its new operating base located 

          year-end with the deployment of four new twin         in Beebe, Arkansas late in the first quarter of 2007,

          pumping units to service the regions intermediate    thereby further strengthening the Companys 

          and deep basins. In addition, in August Calfrac       United States operations.




PG 14 > CALFRAC WELL SERVICES LTD. Owc > 2006 ANNUAL REPORT
                                                      During 2006, Calfrac 


                                                      continued to grow its 


                                                      presence in the Russian 


                                                      well services market by 
RUSSIAN OPERATIONS >
Calfrac continued to grow its presence in the         opening a new operating 
Russian well services market by opening a new         base and deploying 
operating base in Khanty-Mansiysk, Western Siberia 
in May 2006. During the year, the Company             additional equipment. 
deployed its first multi-pumper fracturing spread 
and a deep coiled tubing unit to this new operating   These expanded and more 

region. At year-end, the Company was operating 
one conventional fracturing spread as well as three   diversified operations are
deep coiled tubing units in Russia. In February       expected to drive further 
2007, the Company deployed a second fracturing 
spread to its newest operating base located in        improvement in the 
Purpe, Western Siberia. Two additional coiled tubing 
units are expected to be delivered to Russia by the   Companys future per- 
end of the first quarter of 2007. This equipment will formance in this market.
work under three annual service awards negotiated 
with two of Russias largest oil and gas companies. 
Contrary to Calfracs North American operations, its 
Russian operations are more heavily weighted to 
the oil well pressure pumping services market. 
For 2007, it is anticipated that the larger scale of 
Russian operations will help drive continued 
corporate growth and, to some extent, mitigate the 
impact of a possible slowdown in activity in Canada 
and the United States.
       Operations Review









































           NEW TECHNOLOGY >                                       has invested in additional pumping capacity, and 
           Throughout 2006, the oil and gas industry contin-      during 2007 it plans to acquire an additional 21 
           ued its shift in activity towards developing deeper    high pressure pumping units for use in Canada, the 
           and tighter gas reservoirs, which has resulted in      United States and Russia.
           rising demand for larger stimulation treatments.       During the past year, the Alberta Energy and Utilities
           Both tight sands and shale gas reservoirs lie near     Board (EUB) introduced new environmental stan- 
           the bottom of the resource pyramid where, although     dards for shallow gas fracturing. More specifically, 
           reserve potential is high, deliverability through con- fracturing treatments performed in well depths that 
           ventional technology is challenging. For stimulation   are above the base of ground water protection, as 
           treatments to be effective in these tight reservoirs   outlined by the EUB, are required to use special 
           where permeability is measured in terms of micro       stimulation fluids. Calfrac proactively responded to 
           and nano Darcys, maximizing the areal contact of       this new standard by developing a new series of 
           the reservoir to the wellbore is of primary impor-     innovative fluid systems, which successfully passed 
           tance. Large fracturing treatments pumped at very      stringent Microtox testing.
           high rates are known as slick water fracturing, or in 
           the case of Calfrac, the CWS-600 system. These         The expansion into the Russian market has also 
           fluid and pumping technologies, combined with          prompted Calfrac to develop a new approach to 
           innovative completion practices, allow multiple        traditional fracture fluid systems. Consequently, the 
           intervals to be treated in both vertical and horizon-  Company has introduced a new continuous mix, 
           tal wells. Unlike conventional stage fracturing that   high viscosity, cross-linked fluid system that is 
           requires multiple trips to the well location, slick    providing for more efficient fracturing operations 
           water fracturing technology can stimulate several      and lower costs for customers.
           intervals concurrently, thereby reducing the 
           environmental impact and helping to lower overall 
           well completion costs. In response to this recent 
           industry trend, over the past several years Calfrac




PG 16 > CALFRAC WELL SERVICES LTD. Owc > 2006 ANNUAL REPORT
Oil and gas industry trends are shifting, while 
environmental standards are becoming more 
rigorous. Calfrac continues to lead the pressure
pumping services sector by developing new 
technologies, fluid systems and engineering 
solutions designed to increase operational 
efficiency, reduce environmental impact and 
lower overall well completion costs.
         Operations Review











              EQUIPMENT >                                                          HEALTH, SAFETY AND ENVIRONMENT >

              Calfrac operates a comprehensive fleet of equip-                     The Company utilizes a comprehensive and inte- 

              ment that, on average, is less than three years old.                 grated internal system (the Calfrac Management 
              A major challenge for the Company continues to be                    System) to manage, monitor and report on health, 
              managing the operational impact of construction                      safety and environmental (HS&E) incidents and 
              delays for new fracturing, coiled tubing and                         issues. This system is based on business and 
              cementing equipment. The Companys equipment                         industry best practices that meet or exceed all reg-

              expansion has been slowed by delays as a result of                   ulatory standards and provides guidelines to ensure 
              high activity levels in the equipment manufacturing                  that a consistent approach is achieved across all of

              sector and a shortage of critical components.                        its global operations. As Calfrac continues to grow 
              Calfrac continues to meet with its manufacturers                     the scope and scale of its operations, it remains 

              and other third party suppliers to address this                      committed to providing a safe work environment for 
              ongoing issue and has been proactive in obtaining                    its employees, third party contractors and customers

              major components directly from suppliers. In addi-                   During 2006, the Company continued to educate its 
              tion, during 2006 Calfrac continued to increase its 
              fleet management staff as well as the number of                      employees on safe work practice methods and 
              Canadian, U.S. and international vendors.                            emergency response procedures. Calfrac collaborates 
                                                                                   with a number of safety institutions and related 
                                                                                   third parties to ensure its employees are trained 

                                                                                   and certified in compliance with Company and 
                                                                                   regulatory standards. In addition, the Companys 

                                                                                   operations and HS&E staff actively participate 
                                                                                   with industry partners to develop standards and 
                                                                                   protocols to further the industrys best practices.












                                         The Calfrac Management System is a compre- 


                                         hensive and integ rated internal system that 


                                         manages, monitors and reports on Company 


                                         HS&E activities. This system is based on 


                                         business and industr y best practices that meet 


                                         or exceed all regulatory standards and provides 


                                         guidelines to ensure that a consistent approach 


                                         is achieved across all of its global operations.













PG 18 > CALFRAC WELL SERVICES LTD.> 2006 ANNUAL REPORT
 A Global WStrategy:
Technologies That Work
   in the Field





       We will work relentlessly to reduce
       costs and improve productivity and 
       operating efficiency.
Managements Discussion and Analysis








            This Managements Discussion and Analysis (MD&A) for Calfrac Well Services Ltd. (Calfrac or the 
            Company) has been prepared by management as of February 26, 2007 and is a review of the financial 
            condition and results of operations of the Company based on accounting principles generally accepted in
            Canada. Its focus is primarily a comparison of the financial performance for the three months and years
            ended December 31, 2006 and 2005 and should be read in conjunction with the audited consolidated 
            financial statements and accompanying notes for those periods as well as the MD&A for the three months 
            and years ended December 31, 2005. Readers should also refer to the Forward-Looking Statements legal 
            advisory located at the end of this MD&A. The annual consolidated financial statements have been 
            prepared in accordance with Canadian generally accepted accounting principles (GAAP).
            All financial amounts and measures presented in this MD&A are expressed in Canadian dollars unless 
            otherwise indicated. The definitions of certain non-GAAP measures used within this MD&A have been 
            included at the end of this MD&A.





  2006 HIGHLIGHTS >
  Calfrac is an independent provider of specialized oilfield services in Canada, the United States and Russia, 
  including fracturing, coiled tubing, cementing and other well stimulation services. The Company has established 
  a leadership position by providing high quality, responsive service through an expanding geographic network, 
  increased operating fleet and growing customer base. For the year ended December 31, 2006, Calfrac:

   > increased revenue 36% to $426.4 million compared to $314.3 million in 2005;
   > grew net income to $72.5 million or $2.00 per share (basic), an increase of $12.3 million or $0.34 
     per share (basic) from the previous year;
   > achieved record cash flow from operations before changes in non-cash working capital of $101.9
     million or $2.81 per share (basic) compared to $80.6 million or $2.23 per share (basic) in 2005;
   > improved year-over-year EBITDA by 38% to $109.5 million versus $79.6 million a year ago; and
   > incurred capital expenditures of $155.5 million to expand its equipment fleet across all geographic
     markets and service lines.













500

400

300

200

100

 0





                                          CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 19
 Managements Discussion and Analysis










     Revenue Mix (%)




        Fracturing 
        Services


        Well Stimulation 
        Services


        Cementing 
        Services




                        2005                 2006


     BUSINESS ENVIRONMENT >

     Calfracs 2006 financial and operating performance was primarily weighted to its Canadian natural gas fracturing

     operations. During 2006, the number of wells drilled in Western Canada decreased 7% to 22,979 from a record 
     24,803 wells drilled in 2005. The Companys shallow gas and coalbed methane (CBM) activity levels were 
     negatively impacted by customers reducing activity due to concerns surrounding lower natural gas commodity 
     prices. CBM activity levels were also impacted by regulatory and landowner issues.












     The West Texas Intermediate benchmark crude oil price increased 17% in 2006 to average US$66.25 per 

     barrel compared to US$56.70 per barrel a year ago. The 2006 AECO average spot price was $6.54 per thousand 
     cubic feet, a 26% decrease from 2005. The Company anticipates that oil and gas prices over the short-term 
     may remain volatile and that well service market activity levels should continue to be relatively strong, but 
     lower than the record levels experienced in 2005.


     2006 PERFORMANCE SUMMARY > 

     Canadian Operations

     Revenue from Canadian operations for 2006 increased 14% to $318.0 million compared to $280.1 million in 

     2005 primarily as a result of higher activity in the deeper, more technical areas of the Western Canadian 

     Sedimentary Basin offset by lower activity due to the impact of weaker natural gas prices and CBM regulatory 
     delays. Canadian fracturing revenue totaled $278.2 million, an increase of $15.4 million or 6% from the prior 

     year. During 2006, the Company completed 5,238 Canadian fracturing jobs for average revenue of $53,105 per 
     job compared to 6,063 jobs for $43,334 per job in 2005. The revenue per job for Canadian fracturing operations 
     was higher in 2006 due primarily to significant increases in the number of jobs completed in the deeper basins 
     of northern Alberta and northeastern British Columbia, price book increases for services effective January 1, 
     2006 and a reduction in the number of CBM and shallow gas jobs completed during the year.

     The Companys revenue from coiled tubing operations increased $9.3 million in 2006 to $18.2 million compared 

     to $8.9 million the previous year. In 2006, 5,875 jobs were completed for average revenue of $3,102 per job 

     compared to 5,262 jobs for $1,698 per job in 2005. Year-over-year Canadian coiled tubing revenue and revenue 
     per job increased primarily as a result of the deployment of two new coiled tubing units during the second 
     quarter of 2006, which enabled the Company to generate higher levels of activity in the deeper markets of




PG 20 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
Geographic Mix (%)


   Canada




   Russia


                  2005                2006

Western Canada. Additionally, the Companys coiled tubing operations were focused throughout 2005 on shallow 
gas operations in southern Alberta, which historically produce lower revenue on a per job basis. In 2006, these 
operations were negatively impacted by decreased drilling activity. Also during 2005, two coiled tubing units 
were transferred to Russia during the second and third quarters, which negatively impacted activity and revenue 
from this service line during the previous year.
For the year ended December 31, 2006, revenue from Calfracs cementing operations totaled $21.6 million 
versus $8.4 million in 2005. This 158% increase was due primarily to a larger equipment fleet, expanded service 
area, including the deeper basin markets of northern Alberta and northeastern British Columbia, as well as the 
integration of cementing operations into its sales and marketing team. During 2006, the Company completed 
1,974 jobs for average revenue of $10,959 per job compared to 1,007 jobs for average revenue of $8,336 per 
job in 2005.
United States Operations
During 2006, revenue from Calfracs United States operations totaled $86.3 million, up 161% from $33.0 million 
the previous year. This increase was primarily a result of a larger fracturing equipment fleet combined with 
higher levels of activity. In late 2005, a fracturing spread was deployed to eastern Colorado and another deep 
fracturing spread began operating in the Piceance Basin of western Colorado during March 2006. For the year 
ended December 31, 2006, the Company completed 1,284 U.S. fracturing jobs for average revenue of $67,037 
per job compared to 509 jobs for $64,921 per job recorded a year ago. The year-over-year increase in the 
reported revenue per job was partially offset by a stronger Canadian dollar.
Russian Operations
Revenue from Calfracs Russian operations increased $20.9 million to $22.1 million in 2006 from $1.2 million 
a year ago. The Company initially deployed two deep coiled tubing units to Russia during the fourth quarter 
of 2005. A third deep coiled tubing unit was added in May 2006, and in June the Company began operating
its first Russian fracturing spread in the Khanty-Mansiysk region of Western Siberia. A second fracturing spread 
began operating from Calfracs newest Russian operating district in Purpe, Western Siberia during the first quarter
of 2007. Two additional coiled tubing units are anticipated to be deployed to Russia late in the first quarter of 
2007. These expanded and more diversified operations have reached a critical mass and are expected to drive 
further improvement in the Companys future financial and operating performance in this market.







                                      CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 21
 Managements Discussion and Analysis 










      Expenses (%)




        Operating








        Interest, Depreciation 
        and Other




                         2005                 2006



      GROSS MARGIN >

      Consolidated gross margin for the year ended December 31, 2006 increased 24% to $135.4 million from 

      $109.1 million in 2005 primarily as a result of a larger fleet of equipment in all geographic segments and 
      strong activity levels in the deeper basin markets of Western Canada and the United States. Consolidated gross 
      margin as a percentage of revenue decreased to 32% from 35% in 2005 as a result of the impact of pricing 
      pressures in the Canadian market during the latter half of 2006 and increased revenue from Russia, which has 
      lower gross margins. This was partially offset by improved financial performance in the United States.


      EXPENSES >

      Operating Expenses

      Calfracs total 2006 operating expenses increased 42% to $291.1 million compared to $205.2 million in 2005 

      due primarily to a larger fleet of equipment and global operating presence, as well as higher activity levels and
      district overhead expenses. During 2006, district expenses increased as a result of the Companys growing 

      scale of operations in each of its three geographic markets; more specifically, the expansion of existing 
      Canadian districts servicing the deeper basins of Western Canada and the opening of a new district office in 
      Russia. Additionally, Calfrac incurred the full year cost impact of new operating bases that were opened in the 
      latter half of 2005 in Strathmore, Alberta; Grand Junction, Colorado; and Noyabrsk, Russia.


      Selling, General and Administrative Expenses

      During 2006, Calfracs selling, general and administrative (SG&A) expenses declined 4% to $28.4 million 

      compared to $29.5 million in the previous year primarily relating to lower stock-based compensation expenses, 
      which decreased to $2.9 million from $4.3 million recorded in 2005. As a percentage of revenue, SG&A 

      expenses decreased to 7% in 2006 compared to 9% in 2005. During 2005, the Companys higher relative stock 
      price resulted in higher than normal expenses related to performance and deferred share units.


      Interest, Depreciation and Other Expenses

      Net interest expense increased to $2.3 million during 2006 compared to $0.1 million of net interest income 

      in 2005 as a result of higher long-term debt incurred primarily to finance the Companys capital program. 
      A public offering of Calfracs shares in August 2004 for net proceeds of $26.8 million resulted in a stronger 

      cash position and higher interest revenue during 2005 as compared to 2006.

      In 2006, depreciation expense increased 50% or $8.6 million to $25.7 million primarily as a result of the 
      deployment of four fracturing spreads, three coiled tubing units, four cementing units and other related equip- 

      ment as well as a full year of depreciation relating to 2005 equipment additions.






PG 22 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
 Net Income ($ millions)
80
70
60
50
40
30
20
10
0

 INCOME TAX >
 During 2006, the Company recorded an income tax expense of $9.0 million compared to $2.5 million a year 
 ago. The current tax expense for 2006 was $7.5 million, an increase of $6.4 million from 2005. As a result 
 of the business combination with Denison Energy Inc. (Denison) in 2004, Calfrac significantly reduced its 
 current income tax related to Canadian operations during 2005 and 2006. The increase in the current tax provi- 
 sion for 2006 was mainly attributed to the increased profitability of the Companys U.S. operations. For the year 
 ended December 31, 2006, Calfrac recorded a future income tax expense of $1.5 million, up from $1.4 million 
 in 2005. This provision is largely related to the drawdown of tax pools as a result of the Companys profitability
 NET INCOME >
 For the year ended December 31, 2006, Calfracs net income was $72.5 million or $2.00 per share (basic) 
 compared to $60.1 million or $1.66 per share (basic) in 2005. This growth in earnings was primarily due to 
 improved financial performance from the Companys Canadian deep basin and United States operations, 
 a larger and more diversified fleet of equipment and less weather related issues than in 2005.








 Net Income Per Share ($ basic)
2.00

1.50

1.00

0.50

0



                                      CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 23
 Managements Discussion and Analysis




          Cash Flow ($ millions)
      120
      100
      80
      60
      40
      20
        0

          CASH FLOW >
          The Companys cash flow from operations before changes in non-cash working capital was $101.9 million in 
          2006, an increase of $21.3 million or 26% from $80.6 million recorded the previous year. This increase was
          primarily a result of:
             > consolidated revenue growing 36% or $112.1 million to $426.4 million
          that was partially offset by:
             > operating expenses that increased 42% or $85.8 million to $291.1 million;
             > net interest expense that rose $2.4 million to $2.3 million; and
             > a $6.4 million increase in the current income tax provision to $7.5 million. 
          In both 2006 and 2005, cash flow was used to partially finance the Companys capital expenditures. 










          Cash Flow Per Share ($ basic)
      3.00
      2.50
      2.00
      1.50
      1.00
      0.50
        0



PG 24 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
LIQUIDITY AND CAPITAL RESOURCES >
 Years Ended December 31,                                           2006!        2005
 (000s)                                                               ($)          ($)
 Cash provided (used in):
   Operating activities                                           110,518      59,005 
   Financing activities                                           42,756         (128) 
   Investing activities                                          (136,881)     (97,520) 
 Increase (decrease) in cash and cash equivalents                 16,393       (38,643)

Operating Activities
The Companys 2006 cash flow from operations, excluding changes in non-cash working capital, was $101.9 
million compared to $80.6 million in 2005. The increase in cash flow was primarily due to higher revenues in 
all geographic markets driven mainly by higher activity levels (with the exception of Canadian CBM and shallow 
gas fracturing markets) partially reduced by increased expenses. As at December 31, 2006, Calfrac had positive 
working capital of $31.2 million compared to working capital of $39.4 million in 2005. The reduction in working 
capital was primarily due to higher trade payables related to the Companys capital expenditures.

Financing Activities
In 2006, total long-term debt increased to $60.0 million from $10.6 million a year ago. During the fourth quarter 
of 2006, the Company finalized the documentation to increase its available credit facilities to $150.0 million 
with a syndicate of Canadian chartered banks. The operating line of credit was increased from $20.0 million to 
$25.0 million with advances bearing interest at either the banks prime rate, U.S. base rate, LIBOR plus 1% 
or bankers acceptances plus 1%. The revolving term loan was increased to $125.0 million from $50.0 million 
and bears interest at either the banks prime rate plus 0.25%, U.S. base rate plus 0.25%, LIBOR plus 1.25% or 
bankers acceptances plus 1.25%. On February 13, 2007, Calfrac completed a private placement of unsecured 
senior notes for an aggregate principal amount of US$135.0 million. These notes are due on February 15, 2015 
and bear interest at 7.75%. As a result of this debt offering, the Companys revolving term loan was reduced by 
$60.0 million to $65.0 million. A portion of the proceeds received from these notes was used to repay the 
outstanding amounts related to the existing operating and revolving term credit facilities. As at the date of this 
report, the Company has unused credit facilities in the amount of $90.0 million and approximately US$50.0 
million of cash invested in short-term investments.
On February 7, 2005, the shareholders of the Company voted in favour of a two-for-one subdivision of the 
Companys common shares. Common shares began trading on a split basis on the Toronto Stock Exchange on 
February 17, 2005. As at the date of this report, the Company has 36,390,408 common shares outstanding.
In May 2005, Calfracs Board of Directors adopted a semi-annual dividend policy of $0.05 per common share. 
In accordance with this policy, the Company most recently paid a common share dividend on January 5, 2007 
totaling $1.8 million to all shareholders of record on December 19, 2006. The Companys dividends qualify as 
eligible dividends as defined by the Canada Revenue Agency.














                                                                  CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 2
 Managements Discussion and Analysis 






       Investing Activities
       During 2006, net cash used for investing activities increased to $136.9 million from $97.5 million in 2005. For 
       the year ended December 31, 2006, capital expenditures totaled $155.5 million, up from $97.6 million a year 
       ago. This increase in capital expenditures was primarily due to:
         > the construction and deployment of four multi-pumper conventional fracturing spreads, with 
           one spread allocated to each of the Companys Canadian and Russian markets and two spreads 
           serving the U.S. market;
         > the construction and deployment of two deep coiled tubing units to Canada and one deep coiled 
           tubing unit to serve the well services market in Western Siberia;
         > the completion of four cementing units to serve the deeper basin markets of Western Canada; and
         > construction costs related to the remaining two additional fracturing spreads, two coiled tubing 
           units and four cementing units from the 2006 capital program.
       During December 2006, the Company entered into a long-term contract with a leading independent U.S. oil and 
       gas company for fracturing services in Arkansas and eastern Oklahoma. Under the terms of this contract, 
       Calfrac will provide a multi-pumper fracturing spread for a two-year term with minimum work commitments 
       that will be serviced by Calfracs existing fleet of equipment as well as equipment being manufactured pursuant 
       to the Companys 2007 capital program. This contract is consistent with Calfracs philosophy of having a pre- 
       scribed level of its equipment fleet operating under long-term contracts. In addition, the Company was awarded 
       a one-year contract with a new customer in Purpe, Russia. This contract includes the provision of a multi- 
       pumper fracturing spread, deep coiled tubing unit and additional support equipment. At the end of the first 
       quarter of 2007, it is anticipated that Calfrac will be operating 27 fracturing spreads, 16 coiled tubing units and
       17 cementing units.
       On February 11, 2005, the Company acquired the remaining 30% interest in Ram Cementers Inc. (Ram), 
       thereby making Ram a wholly owned subsidiary of Calfrac. Subsequent to this acquisition, Ram was wound-up 
       into Calfrac and all operating, marketing and financial activities became fully integrated within the Company.
       With its current working capital position, available credit facilities and anticipated cash flow from operations, 
       the Company expects to have adequate resources to fund its financial obligations for 2007.

       CONTRACTUAL OBLIGATIONS AND CONTINGENCIES >


        (000s)                    ($)       ($)       ($)        ($)
        Long-term debt         60,000             19,200     40,800
        Operating leases       26,137    6,649     6,688      5,363
        Purchase obligations   18,373    16,925    1,448         

       Calfrac has various contractual obligations related to debt, leasing of vehicles and office space and raw material 
       purchase commitments as outlined above.









PG 26 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
Russian Value Added Taxes
As described in note 15 to the annual consolidated financial statements, Calfrac is involved in legal proceed- 
ings against the Russian governments tax authorities with respect to the recovery of certain Value Added Taxes 
(VAT) paid when new equipment from North America was imported into the country. The Company believes 
that it is entitled to recover these previously paid VATs against the VAT amounts collected from Russian cus- 
tomers for the provision of pressure pumping services. As at December 31, 2006, the total recoverable amount 
of Russian VAT receivable was $4.5 million. During 2006, the Company was successful in similar proceedings 
and believes that the recovery of these amounts will be resolved within the next 12 months.
Greek Legal Proceedings
As described in note 15 to the annual consolidated financial statements, the Company is involved in a number 
of legal proceedings in Greece. Management evaluates the likelihood of potential liabilities being incurred and 
the amount of such liabilities after careful examination of available information and discussions with its legal 
advisors. As these proceeding have yet to reach a status where the direction of a courts decision can be 
determined with any reliability, management is unable to evaluate its potential exposure to these legal proceed- 
ings at this time. The Company does not expect these claims to be material.
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES 
AND INTERNAL CONTROL OVER FINANCIAL REPORTING >
The President & Chief Executive Officer (CEO) and Vice President, Finance & Chief Financial Officer (CFO) 
of Calfrac are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and 
internal control over financial reporting (ICFR) for the Company.
DC&P is designed to ensure that information required to be disclosed in documents filed with securities regula- 
tory authorities is recorded, processed, summarized and reported on a timely basis, and is accumulated and 
communicated to the Company's management, including the CEO and CFO, as appropriate, to allow timely 
decisions regarding required disclosure. ICFR is designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP.
In accordance with the requirements of Multilateral Instrument 52-109 Certification of Disclosure in Issuers 
Annual and Interim Filings, an evaluation of the design and operating effectiveness of DC&P was carried out 
under the supervision of the CEO and CFO as at the end of the period covered by this report.
Based on this evaluation, the CEO and CFO have concluded that, subject to the inherent limitations noted 
below, the Companys DC&P is designed and operating effectively to provide reasonable assurance that material 
information relating to the Company, including its consolidated subsidiaries, is made known to them by others 
within those entities.
The Company's management, including the CEO and CFO, does not expect that the Company's DC&P will prevent 
or detect all misstatements or instances of fraud. The inherent limitations in all control systems are such that 
they can provide only reasonable, not absolute, assurance that all control issues and misstatements or instances 
of fraud, if any, within the Company have been detected. Likewise, ICFR, no matter how well designed, has 
inherent limitations. Therefore, ICFR can provide only reasonable assurance with respect to financial statement 
preparation and may not prevent or detect all misstatements.
There was no change to the Companys ICFR that occurred during the most recent interim period that has 
materially affected, or is reasonably likely to materially affect, the Companys ICFR.




                                     CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 27
 Managements Discussion and Analysis





      ACCOUNTING POLICIES AND ESTIMATES >
      Changes In Accounting Policies
      No changes in accounting principles were adopted in 2006. 
      Recent Accounting Pronouncements
      Management is assessing new Canadian and U.S. accounting pronouncements that have been issued and are 
      not yet effective. These new pronouncements are set out below.
      In January 2005, the Canadian Institute of Chartered Accountants issued Handbook Section 3855 Financial 
      Instruments - Recognition and Measurement, Handbook Section 1530 Comprehensive Income and Handbook 
      Section 3865 Hedges. In the year ending December 31, 2007, Calfrac will adopt these new standards that 
      require the presentation of a separate statement of comprehensive income under specific circumstances. The 
      Company does not expect that the adoption of these policies will have a material impact on its consolidated 
      financial statements.
      In July 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48, 
      Accounting for Uncertainty in Income Taxes  An Interpretation of FASB Statement No. 109 (FIN 48). FIN 48 
      provides guidance for recognizing and measuring uncertain tax positions, as defined in SFAS 109, Accounting 
      for Taxes. FIN 48 prescribes a threshold condition that a tax position be recognized in the financial statements.
      Guidance is also provided regarding de-recognition, classification and disclosure of these uncertain tax posi- 
      tions. FIN 48 is effective for fiscal years beginning after December 15, 2006. The Company has not yet 
      determined the impact on its financial position, results of operations or cash flows from FIN 48.
      In February 2006, FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial Instruments  An 
      Amendment of FASB Statement Nos. 133 and 140 (SFAS 155). SFAS 155 simplifies the accounting for certain 
      hybrid financial instruments under SFAS 133 by permitting fair value remeasurement for financial instruments 
      containing an embedded derivative that otherwise would require separation of the derivative from the financial 
      instrument. SFAS 155 is effective for all financial instruments acquired, issued or subject to a remeasurement 
      event occurring in fiscal years beginning after September 15, 2006. The Company does not expect that SFAS 
      155 will have a material impact on its financial position, results of operations or cash flows.
      In September 2006, FASB issued SFAS No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines 
      fair value, establishes a framework for measuring fair value under U.S. GAAP and expands disclosures about 
      fair value measurements. The statement is effective for fair value measures already required or permitted by 
      other standards for financial statements issued for fiscal years beginning after November 15, 2007 and interim 
      periods within those fiscal years. The Company has not yet determined the impact on its financial position, 
      results of operations or cash flows from SFAS 157.
      Critical Accounting Policies and Estimates
      This MD&A is based on the Companys annual consolidated financial statements that have been prepared in 
      accordance with Canadian GAAP. Management is required to make assumptions, judgements and estimates 
      in the application of GAAP. Calfracs significant accounting policies are described in note 2 to the annual 
      consolidated financial statements. The preparation of the consolidated financial statements requires that certain 
      estimates and judgements be made concerning the reported amount of revenues and expenses and the carry- 
      ing values of assets and liabilities. These estimates are based on historical experience and managements 
      judgement. Anticipating future events involves uncertainty, and consequently, the estimates used by manage- 
      ment in the preparation of the consolidated financial statements may change as future events unfold,




PG 28 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
additional experience is acquired or the environment in which the Company operates changes. The following 
accounting policies and practices involve the use of estimates that have a significant impact on the 
Companys financial results.
D E P R E C I AT I O N
Depreciation of the Companys property and equipment incorporates estimates of useful lives and residual 
values. These estimates may change as more experience is obtained or as general market conditions change, 
thereby impacting the operation of the Companys property and equipment.
S T O C K - B A S E D C O M P E N S AT I O N
As described in note 8 to the annual consolidated financial statements, the fair value of stock options are esti- 
mated at the grant date using the Black-Scholes option pricing model, which includes underlying assumptions 
related to the risk-free interest rate, average expected option life, estimated volatility of the Companys shares 
and anticipated dividends.
I N C O M E TA X E S
As described in notes 9 and 10 to the annual consolidated financial statements, the amount of the future tax 
asset and deferred tax credit in respect of the income tax pools available to the Company have been based on 
tax filings to date. The income tax rates used to calculate the amount of the future asset have been based on 
available information on future income tax rates. The income tax authorities have not audited any of these 
pools so far as they relate to the Company.
RISK FACTORS >
Calfracs consolidated financial results are affected by numerous risks, including those listed below and those 
identified in the Companys most recently filed Annual Information Form available at www.sedar.com.
Volatility of Industry Conditions
The demand, pricing and terms for fracturing, coiled tubing, cementing and other well stimulation services 
largely depend on the level of exploration and development activity for North American and Russian natural gas 
and, to a lesser extent, oil. Industry conditions are influenced by numerous factors over which the Company has 
no control, including the level of oil and natural gas prices, expectations about future oil and natural gas prices, 
the cost of exploring for, producing and delivering oil and natural gas, the decline rates for current production, 
the discovery rates of new oil and natural gas reserves, available pipeline and other oil and natural gas trans- 
portation capacity, weather conditions, political, military, regulatory and economic conditions, and the ability of 
oil and natural gas companies to raise equity capital or debt financing. A material decline in global oil and natural
gas prices or North American and Russian activity levels as a result of any of the above factors could have a 
material adverse effect on the Companys business, financial condition, results of operations and cash flows.
Seasonality
Calfracs financial results are directly affected by the seasonal nature of the Canadian oil and natural gas 
industry. The first quarter incorporates the winter drilling season when most of the activity takes place. During 
the second quarter, soft ground conditions typically curtail oilfield activity in all of the Companys Canadian 
operating areas such that many rigs are unable to move about due to road bans. This period, commonly 
referred to as spring breakup, occurs earlier in the year in southeastern Alberta than it does in northern 
Alberta and northeastern British Columbia. Consequently, this is the Companys weakest three-month revenue 
period. Additionally, if an unseasonably warm winter prevents sufficient freezing, Calfrac may not be able to 
access wellsites, and as a result, the Companys operating results and financial condition may be adversely


                                      CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 29
 Managements Discussion and Analysis






      affected. The demand for fracturing and other well stimulation services may also be affected by severe winter 
      weather in North America and Russia. In addition, during excessively rainy periods in any of the Companys 
      operating areas, equipment moves may be delayed, thereby adversely affecting revenues. The volatility in the 
      weather and temperature can therefore create unpredictability in activity and utilization rates, which can have 
      a material adverse effect on Calfracs business, financial condition, results of operations and cash flows.
      Sources, Pricing and Availability of Raw Materials and Component Parts
      The Company sources its raw materials, such as proppant, chemicals, nitrogen, carbon dioxide, diesel fuel, 
      and component parts, such as coiled tubing, from a variety of suppliers in North America and Russia. Should 
      Calfracs current suppliers be unable to provide the necessary raw materials and component parts at a price 
      acceptable to the Company, or otherwise fail to deliver products in the quantities required, any resulting delays 
      in the provision of services could have a material adverse effect on Calfracs business, financial condition, 
      results of operations and cash flows.
      Operational Risks
      Calfracs operations are subject to hazards inherent in the oil and gas industry such as equipment defects, mal- 
      function and failures, and natural disasters that result in fires, vehicle accidents, explosions and uncontrollable
      flows of natural gas or well fluids that can cause personal injury, loss of life, suspension of operations, damage 
      to formations, damage to facilities, business interruption and damage to or destruction of property, equipment
      and the environment. These hazards could expose the Company to substantial liability for personal injury, 
      wrongful death, property damage, loss of oil and gas production, pollution and other environmental damages. 
      The Company continuously monitors its activities for quality control and safety, and although Calfrac maintains 
      insurance coverage that it believes to be adequate and customary in the industry, such insurance may not be 
      adequate to cover potential liabilities and may not be available in the future at rates that the Company considers 
      reasonable and commercially justifiable.
      Liabilities From Prior Operations
      The Company transferred the Canadian oil and natural gas assets, mining leases, mining environmental services 
      and related assets and liabilities of Denison to two new public companies that provided indemnities to Calfrac 
      for all claims or losses relating to Denisons prior business, except for matters related to specific liabilities 
      retained by the Company. Despite these indemnities, it is possible that Calfrac may be found responsible for 
      claims or losses relating to the assets and liabilities transferred by Denison and that the claims or losses may 
      not be within the scope of the indemnities or the indemnifying party may lack sufficient financial resources to 
      satisfy its obligations pursuant to the indemnities. Because of the nature of Denisons former operations, these 
      claims or losses could include substantial environmental claims. The Company cannot predict the outcome or 
      ultimate impact of any legal or regulatory proceedings that may relate to Denisons prior ownership or operation 
      of these assets.
      Greek Legal Proceedings
      The Company is involved in several legal proceedings with former employees of Denison Mines Inc. relating to 
      the cessation of its oil and natural gas operations in Greece during 1998 and 1999. The Company intends to 
      defend itself against the claims of the employees, however the direction and financial consequences of decisions 
      in these proceedings cannot be determined at this time.







PG 30 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
  Competition
  Company participates in a highly competitive industry. The principal competitive factors in the markets in which 
  Calfrac operates include: product and service quality and availability, technical knowledge and experience, 
  reputation for safety, and quality. The Company competes with regional, national and multi-national companies 
  that have greater financial and other resources than Calfrac. These companies offer a wide range of well stim- 
  ulation services in all geographic regions in which Calfrac operates. As a result of competition, the Company 
  may suffer from a significant reduction in revenue or be unable to pursue additional business opportunities.
  Foreign Exchange
  The Company incurs a significant amount of its expenses in U.S. dollars, and as a result, these expenditures 
  are directly affected by the Canadian/U.S. dollar exchange rate, which fluctuates over time. Russian revenue 
  is earned in U.S. dollars, but is paid in Russian rubles converted to U.S. dollars at the official conversion rate
  in Russia on the day prior to payment. Conversion rates of the Russian ruble to or from U.S. dollars will also 
  affect the Companys net income. This exposure is mitigated by the Companys operations in the United 
  States and Russia.
  Mitigation of Risks Factors
  The Company expects that its strong financial position, experienced management team with significant 
  investments at risk, innovative equipment and services as well as its long-term contractual relationships with 
  certain customers will enhance its ability to weather the downturns in industry drilling activity and unforeseen 
  adverse events.

  Quarterly Revenue ($ millions)
150

120

90

60

30

0    2005Q1       Q2      Q3       Q4

  Quarterly Net Income ($ millions)
35
30
25
20
15
10
5
0    2005Q1               Q3       Q4



                                                        CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 31
  Managements Discussion and Analysis













         50



         40


         30


         20


         10


         0




             Quarters Ended                                                           Sep. 30     Dec. 31        Total
             (000s, except per share and unit data)
             (unaudited)

             2006
             Revenue                                        126,010      66,973       115,112     118,322     426,418
             Gross margin (1)                               49,927       14,446       36,500      34,488      135,362
             Net income                                     34,556         1,569      19,418      16,907      72,450
                Per share  basic                             0.95         0.04         0.54        0.47         2.00
                           diluted                           0.94         0.04         0.53        0.46         1.98
             Cash flow from operations (2)                  41,656         7,208      27,560      25,507      101,932
                Per share  basic                             1.15         0.20         0.76        0.70         2.81
                           diluted                           1.13         0.20         0.76        0.70         2.79
             EBITDA (3)                                     42,736         8,761      29,614      28,421      109,533
                Per share  basic                             1.18         0.24         0.82        0.78         3.02
                           diluted                           1.16         0.24         0.81        0.78         3.00
             Capital expenditures                           50,631       36,501       23,931      44,415      155,478
             Working capital                                37,071       28,741       31,158      31,225      31,225
             Shareholders equity                           271,084      267,559      287,616     303,510     303,510
             Fracturing spreads (#)
                Conventional fracturing                         18           19          19           21           21
                Coalbed methane                                 4            4           4            4            4
                Total                                           22           23          23           25           25
             Coiled tubing units (#)                            12           14          14           14           14
             Cementing units (#)                                9            11          11           13           13

             1. Gross margin is defined as revenue less operating expenses excluding depreciation and amortization. Gross margin is a measure that does not have any standardized mean- 
               ing prescribed under GAAP, and accordingly, may not be comparable to similar measures used by other companies.
             2. Cash flow is defined as funds provided by operations, as reflected in the consolidated statement of cash flows. Cash flow and cash flow per share are measures that pro-
               vide shareholders and potential investors with additional information regarding the Companys liquidity and its ability to generate funds to finance its operations. 
               Management utilizes these measures to assess the Companys ability to finance operating activities and capital expenditures. Cash flow and cash flow per share are not 
               measures that have any standardized meaning prescribed under GAAP, and accordingly, may not be comparable to similar measures used by other companies.
             3. EBITDA is defined as income before interest, taxes, depreciation and amortization. EBITDA is presented because it is frequently used by securities analysts and others for
               evaluating companies and their ability to service debt. EBITDA is a measure that does not have any standardized meaning prescribed under GAAP, and accordingly, may not 
               be comparable to similar measures used by other companies.























PG 32 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
  Quarters Ended                                   Mar. 31       Jun. 30     Sep. 30      Dec. 31        Total
                                                                    ($)          ($)          ($)


  2005
  Revenue                                          80,694        44,619      77,377       111,634      314,325
  Gross margin (1)                                 32,437        7,630       25,694       43,336       109,098
  Net income (loss)                                21,670        (1,876)     12,947       27,372       60,113
     Per share  basic                               0.60        (0.05)        0.36         0.75         1.66
                diluted                             0.59        (0.05)        0.35         0.75         1.64
  Cash flow from operations (2)                    26,015        2,280       18,503       33,794       80,592
     Per share  basic                               0.72        0.06          0.51         0.93         2.23
                diluted                             0.71        0.06          0.51         0.92         2.20
  EBITDA (3)                                       25,339        1,907       18,234       34,131       79,611
     Per share  basic                               0.70        0.05          0.50         0.94         2.20
                diluted                             0.69        0.05          0.50         0.93         2.18
  Capital expenditures                             22,108        25,653      29,241       20,612       97,614
  Working capital                                  49,103        22,301      12,962       39,396       39,396
  Shareholders equity                             197,091     192,508       207,679      234,021      234,021
  Fracturing spreads (#)
     Conventional fracturing                           13           13           13           17           17
     Coalbed methane                                   3            4            4            4            4
     Total                                             16           17           17           21           21
  Coiled tubing units (#)                              11           11           11           11           11
  Cementing units (#)                                  5            6            8            9            9

  1. Gross margin is defined as revenue less operating expenses excluding depreciation and amortization. Gross margin is a measure that does not have any standardized mean- 
   ing prescribed under GAAP, and accordingly, may not be comparable to similar measures used by other companies.
  2. Cash flow is defined as funds provided by operations, as reflected in the consolidated statement of cash flows. Cash flow and cash flow per share are measures that pro-
   vide shareholders and potential investors with additional information regarding the Companys liquidity and its ability to generate funds to finance its operations. 
   Management utilizes these measures to assess the Companys ability to finance operating activities and capital expenditures. Cash flow and cash flow per share are not 
   measures that have any standardized meaning prescribed under GAAP, and accordingly, may not be comparable to similar measures used by other companies.
  3. EBITDA is defined as income before interest, taxes, depreciation and amortization. EBITDA is presented because it is frequently used by securities analysts and others for
   evaluating companies and their ability to service debt. EBITDA is a measure that does not have any standardized meaning prescribed under GAAP, and accordingly, may not 
   be comparable to similar measures used by other companies.


FOURTH QUARTER 2006 PERFORMANCE SUMMARY > 

For the three months ended December 31, 2006, the Company:


   > increased revenue 6% to $118.3 million compared to $111.6 million in the same period of 2005;

   > recorded net income of $16.9 million or $0.47 per share (basic), a decrease of 38% from the $27.4 

     million or $0.75 per share (basic) recorded in the fourth quarter of 2005;

   > realized cash flow from operations before changes in non-cash working capital of $25.5 million or 

     $0.70 per share (basic) compared to $33.8 million or $0.93 per share (basic) in the same three- 

     month period a year ago; and

   > increased income tax provision 63% to $3.2 million due to higher profitability of U.S. operations. 


Canadian Operations

Revenue from Canadian operations for the fourth quarter of 2006 decreased 17% to $79.8 million compared to 

$96.0 million in the same quarter of 2005. Canadian fracturing revenue for the quarter totaled $68.8 million, a 

decrease of 25% from the $91.5 million earned in the corresponding period of 2005. This decrease was primarily 

due to lower CBM and east central Alberta drilling activity compared to a year ago. During the fourth quarter of 

2006, Calfrac completed 1,244 Canadian fracturing jobs for average revenue of $55,295 per job compared to 

2,063 jobs for average revenue of $44,346 per job in the same period of 2005. Improved per job revenues were 

primarily due to a substantial increase in the amount of work completed in the deeper, more technically chal- 

lenging basins of northern Alberta and northeastern British Columbia as well as higher book prices.





                                                                                       CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 33
 Managements Discussion and Analysis





      For the three months ended December 31, 2006, revenue from Canadian coiled tubing operations increased 
      195% to $5.2 million compared to $1.8 million for the same period in 2005. During the fourth quarter of 2006, 
      the Company completed 1,922 jobs for average revenue of $2,694 per job compared to 1,723 jobs for average 
      revenue of $1,020 per job in 2005. The increase in the average revenue per job was due primarily to the 
      deployment of two coiled tubing units during the second quarter of 2006 into the deeper, more technically chal- 
      lenging basins of Western Canada. During the 2005 three-month period, the Companys Canadian coiled tubing 
      fleet was focused on shallow gas operations, which traditionally earn lower revenue on a per job basis.
      Revenue from Calfracs cementing operations was $5.9 million, a 112% increase from the $2.8 million 
      recorded in the fourth quarter of 2005. During the 2006 three-month period, the Company completed 480 jobs 
      for average revenue of $12,234 per job compared to 289 jobs for average revenue of $9,604 per job in the 
      comparable period of 2005. The improved financial and operating results were due primarily to an expanded 
      equipment fleet serving the deeper basin markets of northern Alberta and northeastern British Columbia 
      combined with a more integrated sales and marketing approach.
      United States Operations
      During the fourth quarter of 2006,revenue from the CCompanys United States operations doubled to $29.0 million 
      from $14.4 million recorded in the same period of 2005. For the three months ended December 31, 2006,
      the Company completed 385 U.S. fracturing jobs for average revenue of $75,427 per job compared to 233 jobs 
      for average revenue of $61,816 per job in 2005. The increase in total and per job revenues was due primarily 
      to stronger activity levels in the Piceance Basin of western Colorado and a larger fleet of equipment operating 
      in the United States in the fourth quarter of 2006 compared to the corresponding three-month period in 2005. 
      The increase in the reported revenue from the Companys operations in the United States was partially offset 
      by a stronger Canadian dollar.
      Russian Operations
      The Companys revenue from Russian operations in the fourth quarter of 2006 increased 30% to $9.4 million 
      from $7.3 million in the third quarter of 2006 due primarily to higher fracturing activity levels. As Calfrac com-
      menced Russian coiled tubing operations late in 2005, the prior years fourth quarter results were not 
      significant for analytical purposes.
      GROSS MARGIN >
      Fourth quarter consolidated gross margin was $34.5 million in 2006, a 20% decrease from the $43.3 million 
      recorded in the corresponding period in 2005. As a percentage of revenue, consolidated gross margin was 
      29% for the three months ended December 31, 2006 compared to 39% a year ago. The decrease in consoli- 
      dated gross margin was primarily a result of competitive pricing pressures in Canada and higher Russian 
      revenues that have lower gross margins. This reduction was somewhat offset by improved financial results 
      in the United States.
      EXPENSES >
      Operating Expenses
      During the fourth quarter of 2006, operating costs increased 23% to $83.8 million from $68.3 million in the 
      corresponding three-month period of 2005 due primarily to a larger fleet of equipment, increased levels of 
      activity in the United States and Russia, and higher district expenses as a result of a larger scale of operations
      in the Companys three geographic markets. In 2006, Calfrac opened a new district office in Khanty-Mansiysk, 
      Russia and expanded its Grande Prairie and Red Deer, Alberta bases to better serve the Companys growth into 
      the deeper and more technical basins of northern Alberta and northeastern British Columbia.


PG 34 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
SG&A Expenses
SG&A expenses were $7.9 million for the quarter ended December 31, 2006 compared to $9.1 million in 2005. 
As a percentage of revenue, SG&A expenses for the fourth quarter of 2006 declined to 7% compared to 8% 
in the corresponding period a year ago. The decrease in SG&A expenses during the fourth quarter of 2006 was 
primarily related to a reduction in bonus expenses due to lower Company profitability partially offset by higher
SG&A costs related to the growing United States and Russian operations and an increase in stock-based 
compensation expenses. In the fourth quarter of 2006, stock-based compensation expenses were $0.9 million 
compared to $0.3 million in the same period of 2005.
Interest, Depreciation and Other Expenses
The Company recorded net interest expense of $702,000 for the quarter ended December 31, 2006 compared 
to $67,000 in the comparable period of 2005. During 2006, higher long-term debt levels were required to 
partially finance Calfracs capital expenditures, which resulted in increased interest costs.
Depreciation expense in the fourth quarter of 2006 grew 61% to $7.6 million from $4.7 million in the corre- 
sponding quarter of 2005. The increase in depreciation expense is directly related to the Companys larger 
fleet of equipment operating in North America and Russia and the full impact of 2005 capital expenditures on 
depreciation expense.
INCOME TAX >
The Company recorded income tax expense of $3.2 million for the quarter ended December 31, 2006 compared 
to $2.0 million in the same period of 2005. Current tax expense for the quarter was $2.9 million compared to 
$0.8 million in 2005, which was largely attributed to profitability of the Companys U.S. operations. Calfrac 
recorded a future income tax expense of $0.3 million for the three months ended December 31, 2006 compared 
to $1.1 million recorded in the fourth quarter of 2005. The future income tax provision for the fourth quarters 
of 2006 and 2005 was primarily related to the drawdown of the Companys tax pools as a result of profitability 
in the quarter as well as the timing of deductibility of certain expenses for tax purposes.
NET INCOME >
During the fourth quarter of 2006, the Companys net income totaled $16.9 million or $0.47 per share (basic), 
a 38% decrease from the $27.4 million or $0.75 per share (basic) recorded in the same quarter a year ago. 
This decrease was primarily related to lower profitability in Canadian operations due to competitive pricing 
pressures and lower CBM activity levels.
CASH FLOW >
Cash flow from operations before changes in non-cash working capital for the three months ended December 
31, 2006 decreased 25% to $25.5 million or $0.70 per share (basic) compared to $33.8 million or $0.93 per 
share (basic) in 2005.
LIQUIDITY AND CAPITAL RESOURCES >
During the 2006 three-month period, the Company incurred capital expenditures of $44.4 million compared 
to $20.6 million in the same period of 2005. The majority of these costs related to the completion of the 
Companys 2006 capital program, which included the deployment of two fracturing spreads and two cementing 
units during the quarter, as well as the construction of two conventional fracturing spreads, two coiled tubing 
units and four cementing units that are expected to be deployed in the first quarter of 2007.





                                    CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 35
    Managements Discussion and Analysis 





         OUTLOOK >
         Calfrac believes that the long-term fundamentals for natural gas prices are strong, but concerns surrounding 
         short-term natural gas pricing may negatively impact 2007 drilling activity levels in Western Canada, specifically 
         in the CBM market. The Canadian drilling forecast for 2007 from the Petroleum Services Association of 
         Canada estimates that 21,500 wells will be drilled during the year. Although this is a reduction from the 
         record drilling levels experienced in the last several years, it still represents historically strong activity levels.        The Company is focused on the growing pressure pumping markets of the deeper, more technical areas of the 
.        The Company is focused on the growing pressure pumping markets of the deeper, more technical areas of the 
         Western Canadian Sedimentary Basin. Despite the weakness in near-term natural gas prices, activity levels in 
         the deeper regions of northern Alberta and northeastern British Columbia were strong throughout 2006 and are 
         expected to remain steady in 2007. New coiled tubing and cementing equipment related to the Companys 
         2006 capital program was deployed in the fourth quarter and additional units are expected to become opera- 
         tional by the end of the first quarter of 2007 to service these deeper regions. Calfrac anticipates that the low 
         levels of activity experienced in the Canadian CBM market during the past year will continue to be mitigated by 
         the Companys contracts related to two fracturing spreads servicing these operations. Calfrac also expects that 
         the utilization of its shallow gas fracturing spreads will be strong for at least the first quarter of 2007 as a 
         result of its contractual relationship with a major customer.
         The strong performance of Calfracs United States fracturing operations was a major driver of the Companys 
         2006 financial results. Unlike the Canadian market, drilling activity levels in the U.S. Rocky Mountain region 
         have remained robust, primarily in the Piceance Basin of western Colorado. Fracturing activity in eastern 
         Colorado and the Denver Julesberg Basin gained momentum throughout the year with the number of jobs 
         increasing during the fourth quarter of 2006. Calfracs newest operating base located in Beebe, Arkansas will 
         open by the end of the first quarter of 2007, thereby further diversifying the Companys fracturing operations 
         within the United States market. One multi-pumper fracturing spread will serve the Fayetteville and Arkoma 
         Basins in Arkansas as well as eastern Oklahoma under the terms of a long-term contract with a leading U.S. oil 
         and gas company. From this operating base, there is potential for additional growth as more equipment is 
         deployed into the area to better serve this new market. In 2007, Calfrac anticipates that this important 
         geographic segment will continue to generate strong financial and operating results.
         During the last half of 2006, the Company operated one fracturing spread and three coiled tubing units in 
         Russia. In early 2007, an additional fracturing spread was deployed to a new operating base in Purpe, Western 
         Siberia. Two additional coiled tubing units are expected to be operational by the end of the first quarter of 2007. 
         Building on the momentum of Russias improved operating and financial performance during the fourth quarter of 
         2006, Calfrac believes that these operations have attained sufficient critical mass and are well positioned for 
         future growth and profitability. The expanded equipment fleet, combined with the Companys relationships with 
         two of Russias largest oil and gas companies, is expected to drive improved financial and operating perform- 
         ance from this geographic segment throughout the upcoming year and provide a more significant contribution 
         to Calfracs consolidated financial results.
         The Companys financial position was strengthened further as a result of the closing of its recent US$135.0 
         million debt financing. The offering provides the Company with additional financial flexibility to grow organically,          and alternatively, may also allow the Company to pursue strategic acquisition opportunities that may arise in 
         and alternatively, may also allow the Company to pursue strategic acquisition opportunities that may arise in 
         the future.
         Calfrac will continue to maximize equipment utilization and profitability by redeploying equipment to higher 
         activity regions within its global operating reach.





   PG 36 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
ADVISORIES >

Forward-Looking Statements
In order to provide Calfrac shareholders and potential investors with information regarding the Company and its 
subsidiaries, including managements assessment of Calfracs future plans and operations, certain statements 
made in this Annual Report may contain words such as anticipate, can, may, expect, believe, intend, 
forecast, or similar words suggesting future outcomes or statements regarding an outlook, which constitute 
forward-looking statements or information (forward-looking statements). These statements may include, but 
are not limited to, future capital expenditures, future financial resources, future oil and gas well activity, out-
come of specific events and trends in the oil and gas industry. Readers are cautioned that the foregoing list of 
significant factors is not exhaustive. These statements are derived from certain assumptions and analysis made 
by the Company based on its experience and interpretation of historical trends, current conditions, expected 
future developments and other factors that it believes are appropriate in the circumstances. These statements 
are subject to a number of known and unknown risks and uncertainties, which are discussed previously in this 
report, that could cause actual results to differ materially from the Companys expectations. Although Calfrac 
believes that the expectations presented by these forward-looking statements are reasonable, there can be no 
assurances that actual results or developments anticipated by the Company will be realized or such expecta- 
tions will prove to be correct. Furthermore, the forward-looking statements contained in this Annual Report are 
made as at the date of this report and Calfrac assumes no obligation to update publicly, except as required by 
applicable securities laws, any such forward-looking information whether as a result of new information, future 
events or otherwise. The forward-looking statements contained in this Annual Report are expressly qualified 
under this cautionary statement.

Non-GAAP Measures
Certain measures in this Annual Report do not have any standardized meaning as prescribed under Canadian 
GAAP, such as gross margin, cash flow from operations, cash flow, cash flow per share (basic), cash flow per 
share (diluted), EBITDA, EBITDA per share (basic) and EBITDA per share (diluted), and therefore, are considered 
non-GAAP measures. These measures may not be comparable to similar measures presented by other entities. 
These measures have been described and presented in this Annual Report in order to provide shareholders and 
potential investors with additional information regarding the Companys liquidity and its ability to generate 
funds to finance its operations. Managements use of these measures has been disclosed further in this Annual 
Report as these measures are discussed and presented.

ADDITIONAL INFORMATION >
Further information regarding Calfrac Well Services Ltd. can be accessed on the Companys website at 
www.calfrac.com or under the Companys public filings found at www.sedar.com.







DOUGLAS R. RAMSAY
President &              Vice President, Finance & 
Chief Executive Officer  Chief Financial Officer
February 26, 2007 
Calgary, Alberta





                                     CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 37
A Global WSt
   Growth






      We will build leading positions 
      in our industrys fastest growing 
      service lines and geographic markets
CONSOLIDATED FINANCIAL STATEMENT
Managements Report








  To the Shareholders of Calfrac Well Services Ltd.

  The accompanying consolidated financial statements and all information in the Annual Report are the responsi- 
  bility of management. The consolidated financial statements have been prepared by management in accordance 
  with the accounting policies set out in the accompanying notes to the consolidated financial statements. When 
  necessary, management has made informed judgements and estimates in accounting for transactions that were 
  not complete at the balance sheet date. In the opinion of management, the consolidated financial statements 
  have been prepared within acceptable limits of materiality and are in accordance with Canadian generally 
  accepted accounting principles (GAAP) appropriate in the circumstances. The financial information elsewhere 
  in the Annual Report has been reviewed to ensure consistency with that in the consolidated financial statements

  Management has prepared the Managements Discussion and Analysis (MD&A). The MD&A is based on the 
  Companys financial results prepared in accordance with Canadian GAAP. The MD&A compares the audited 
  financial results for the years ended December 31, 2006 and December 31, 2005.

  Management maintains appropriate systems of internal control. Policies and procedures are designed to give 
  reasonable assurance that transactions are properly authorized, assets are safeguarded and financial records 
  properly maintained to provide reliable information for the preparation of financial statements.

  PricewaterhouseCoopers LLP, an independent firm of Chartered Accountants, was engaged, as approved by a vote 
  of shareholders at the Companys most recent annual meeting, to audit the consolidated financial statements in 
  accordance with Canadian GAAP and provide an independent professional opinion.

  The Audit Committee of the Board of Directors, which is comprised of three independent directors who are not 
  employees of the Company, has discussed the consolidated financial statements, including the notes thereto, 
  with management and the external Auditors. The consolidated financial statements have been approved by the 
  Board of Directors on the recommendation of the Audit Committee.





  DOUGLAS R. RAMSAY -"     TOM J. MEDVEDIC
  President &              Vice President, Finance &
  Chief Executive Officer  Chief Financial Officer
  February 26, 2007 
  Calgary, Alberta























                                      CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 39
 Auditors Report








      To the Shareholders of Calfrac Well Services Ltd.

      We have audited the consolidated balance sheets of Calfrac Well Services Ltd. as at December 31, 2006 and 
      2005 and the consolidated statements of operations and retained earnings and of cash flows for the years then 
      ended. These consolidated financial statements are the responsibility of the Companys management. Our 
      responsibility is to express an opinion on these consolidated financial statements based on our audits.

      We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards 
      require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are 
      free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts 
      and disclosures in the financial statements. An audit also includes assessing the accounting principles used and
      significant estimates made by management, as well as evaluating the overall financial statement presentation.

      In our opinion, these consolidated financial statements present fairly, in all material respects, the financial 
      position of the Company as at December 31, 2006 and 2005 and the results of its operations and its cash 
      flows for the years then ended in accordance with Canadian generally accepted accounting principles.







      February 26, 2007 
      Calgary, Alberta







































PG 40 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
Consolidated Balance Sheets













     As at December 31,                                                               2006 i          2005
     (000s)

     Assets
     Current assets
        Cash and cash equivalents (note 4)                                           5,580             
        Accounts receivable                                                        84,481         91,693
        Inventory                                                                  13,387           6,145
        Prepaid expenses and deposits                                                7,463          2,219
                                                                                   110,911        100,057
     Capital assets (note 3)                                                       327,832 !      198,302
     Long-term investment                                                             396             324
     Goodwill                                                                        6,003          6,003
     Future income taxes (note 9)                                                    9,048        32,129
                                                                                   454,190 ;      336,815

     Liabilities

     Current liabilities
        Bank indebtedness (note 4)                                                               10,813
        Accounts payable and accrued liabilities (note 11)                         77,344         46,748
        Income taxes payable                                                         2,342            485
        Current portion of long-term debt (note 5)                                                 2,615
                                                                                   79,686         60,661
     Long-term debt (note 5)                                                       60,000           8,000
     Other long-term liabilities                                                     4,743          6,306
     Deferred credit (note 10)                                                       6,251        27,827
                                                                                   150,680 ;      102,794

     Shareholders equity 

     Capital stock (note 6)                                                        139,841        138,767
     Shares held in trust (note 7)                                                   (3,869)        (1,385)
     Contributed surplus                                                             4,393 !        2,317
     Retained earnings                                                             163,145        94,322
                                                                                   303,510 i      234,021
                                                                                   454,190 ;      336,815
     Commitments and contingencies (notes 12 and 15) 
     See accompanying notes to the consolidated financial statements.



    Approved by the Board of Directors









    JAMES S. BLAIR                                        GREGORY S. FLETCHER 

    Director                                              Director



























                                                                                   CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 4
 Consolidated Statements of Operations and Retained Earnings









        Expenses
          Operating                                       291,056   205,22
          Selling, general and administrative             28,350    29,467
          Depreciation                                    25,699    17,143
          Amortization of intangibles                                36
          Interest expense (income)                       2,341      (129)
          Equity share of income from long-term investments (72)     (324)
          Foreign exchange (gains) losses and other       (2,516)    192
          Loss on disposal of capital assets                67       152


        Income taxes (note 9)
          Current                                         7,538
          Future                                          1,505



        Net income for the year                           72,450    60,113
        Retained earnings, beginning of year              94,322    37,832
        Dividends                                         (3,627)   (3,623


































PG 42 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
Consolidated Statements of Cash Flows













     Years Ended December 31,                                                   2006 !        2005
     (000s)

     Cash provided by (used in):
     Operating activities
        Net income for the year                                               72,450        60,113 
        Items not involving cash
            Depreciation and amortization                                     25,699        17,179
            Stock-based compensation                                          2,283         2,093
            Equity share of income from long-term investments                   (72)          (324)
            Loss on disposal of capital assets                                  67            152
            Future income taxes                                               1,505         1,400
            Non-controlling interest                                                         (21)
        Funds provided by operations                                          101,932       80,592
        Net change in non-cash operating assets and liabilities (note 14)     8,586 !       (21,587)
                                                                              110,518       59,005
     Financing activities
        Issue of long-term debt (note 5)                                      56,583        12,013
        Long-term debt repayments                                             (7,198)       (9,000)
        Dividends                                                             (3,627) !     (3,623)
        Purchase of common shares (note 7)                                    (3,869) !     (1,385)
        Net proceeds on issuance of common shares                               867         1,867
                                                                              42,756 ;        (128)

     Investing activities
        Purchase of capital assets                                          (155,478)       (97,614)
        Proceeds on disposal of capital assets                                4,289 !          52
        Acquisition of subsidiary, net of cash acquired                                    (3,000)
        Net change in non-cash working capital from purchase of capital assets14,308        3,042
                                                                            (136,881)       (97,520)
     Increase (decrease) in cash position                                     16,393        (38,643)
     (Bank indebtedness) cash and cash equivalents, beginning of year         (10,813)      27,830
     Cash and cash equivalents (bank indebtedness), end of year               5,580         (10,813)

     See accompanying notes to the consolidated financial statements.

















































                                                                              CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 4
 Notes to Consolidated Financial Statements
 Years Ended December 31, 2006 and 2005 
 (000s, except share data)





      1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
        Calfrac Well Services Ltd. (the Company) was formed through the amalgamation of Calfrac Well Services Ltd. (predecessor 
        company originally incorporated on June 28, 1999) and Denison Energy Inc. on March 24, 2004 under the Business Corporations 
        Act (Alberta). The Company provides specialized oilfield services, including fracturing, coiled tubing, cementing and other well 
        stimulation services to the oil and gas industries in Canada, the United States and Russia.


      2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
        The financial statements of the Company have been prepared by management in accordance with Canadian generally accepted 
        accounting principles. Because a precise determination of many assets and liabilities is dependent upon future events, the 
        preparation of financial statements necessarily involves the use of estimates and approximations that have been made using 
        careful judgement. The financial statements have, in managements opinion, been properly prepared within reasonable limits of 
        materiality and within the framework of the significant accounting policies summarized below.
        (a) Principles of Consolidation
          These financial statements include the accounts of the Company and its wholly owned subsidiaries in the United States and 
          Russia.
        (b) Foreign Currency Translation
          The financial accounts of the Companys U.S. and Russian subsidiaries are translated into Canadian currency using the tem- 
          poral method of translation. Under the temporal method, monetary items are translated at the rate of exchange at the 
          balance sheet date, while non-monetary items are translated at the historical rate applicable on the date of the transaction 
          giving rise to the non-monetary balance. Revenues and expenses are translated at the monthly average exchange rates. 
          Gains or losses in translation are recognized in income as they occur.
        (c) Cash and Cash Equivalents
          Cash and cash equivalents consist of cash on deposit, short-term investments with original maturities within 90 days and 
          marketable securities that are carried at the lower of cost and market value.
        (d) Inventory
          Inventory consists of chemicals, nitrogen, carbon dioxide, cement and proppants used to stimulate wells and is stated at the 
          lower of cost, determined on a first-in, first-out basis and net realizable value.
        (e) Capital Assets
          Capital assets are recorded at cost and are depreciated over their estimated economic useful lives using the straight-line 
          method at the following annual rates:
          Field equipment                            10 years
          Buildings                                  20 years
          Shop, office and other equipment           5 years
          Computers and computer software            3 years
          Leasehold improvements                 Term of the lease
        (f) Long-Term Investments
          The Company equity accounts for its investment in shares of a company over which it has significant influence. Under the 
          equity method of accounting, investments are carried at their original cost plus the Companys cumulative share of earn- 
          ings, less any dividends received.
        (g) Goodwill and Intangible Assets
          Goodwill represents the excess of cost over the fair value of net assets acquired. Intangible assets are recognized apart from 
          goodwill and are amortized over their estimated useful lives. Goodwill is assessed by the Company for impairment at least 
          annually. The impairment test is carried out in two steps. In the first step, the carrying amount is compared with its fair value.
          When the fair value exceeds its carrying amount, goodwill is considered not to be impaired and performance of the second 
          step of the impairment test is unnecessary. The second step compares the implied fair value of the goodwill with its carry- 
          ing amount to measure the amount of the impairment loss, if any.
        (h) Income Taxes
          The Company follows the liability method of determining income taxes where future income taxes are determined based on 
          temporary differences between the tax bases of assets or liabilities and their carrying amounts in the financial statements.
        (i) Revenue Recognition 
          Revenue is recognized as services are completed and when delivery occurs for products.






PG 44 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

   (j) Stock-Based Compensation Plans

      The Company recognizes compensation cost for the fair value of stock options granted. Under this method, the Company 
      records the fair value of stock option grants over their vesting period as a charge to compensation expense and a credit to 
      contributed surplus.

   (k) Variable Interest Entities

      Canadian Accounting Guideline 15, Consolidation of Variable Interest Entities (VIEs) requires consolidation of a VIE where 
      an entity absorbs a majority of a VIEs losses, receives a majority of its returns, or both. Under these rules, it was determined
      that the Company is required to consolidate the Trust, which was established to purchase and hold Company stock as 
      described in note 7.

   (l) Comparatives

      Certain comparatives have been reclassified to conform with the financial statement presentation adopted in the current 
      year.




3.  CAPITAL ASSETS

    As at December 31,                                     2006 I    2005

    (000s)

    Cost

      Assets under construction                          78,080     38,073
      Field equipment                                    290,445   188,861

      Buildings                                          17,375     10,432

      Land                                               9,252      5,322
      Shop, office and other equipment                   3,379      2,248

      Computers and computer software                    4,265 !    2,866
      Leasehold improvements                               830       812

                                                         403,626 ; 248,614


    Accumulated Depreciation 

      Assets under construction                                       

      Field equipment                                    69,805     46,343

      Buildings                                          1,336       641

      Land                                                            
      Shop, office and other equipment                   1,510      1,013

      Computers and computer software                    2,821      2,065

      Leasehold improvements                               322 !     250
                                                         75,794 ;   50,312


    Net Book Value

      Assets under construction                          78,080     38,073

      Field equipment                                    220,640   142,518

      Buildings                                          16,039     9,791

      Land                                               9,252 !    5,322

      Shop, office and other equipment                   1,869      1,235

      Computers and computer software                    1,444       801

      Leasehold improvements                               508       562
                                                         327,832 ; 198,302





4. BANK INDEBTEDNESS

   The Company has an operating loan facility of $25,000 bearing interest at the banks prime rate, of which $3,407 was drawn 
   at December 31, 2006 (including $626 of uncleared cheques). The facility is secured by a General Security Agreement over all 
   Canadian assets of the Company. The balance outstanding on the facility has been netted against cash on deposit in these finan- 
   cial statements.












                                                         CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 45
  Notes to Consolidated Financial Statements








          5. LONG-TERM DEBT
                                                                                    2006 I         2005
               (000s)                                                                  ($)           ($)
               Extendible revolving capital equipment facility totaling $125,000 bearing 
               interest at the bankers acceptance rate plus stamping fees of 1.25%,
               requiring fixed principal payments of $2,400 per quarter commencing March 31, 
               2008, and a final payment of $24,000 on December 31, 2011, secured by a General 
               Security Agreement over all Canadian assets of the Company          60,000            
               Capital equipment facility totaling $50,000 bearing interest at the bankers 
               acceptance rate plus stamping fees of 1.375% requiring a fixed principal payment 
               of $167 per month plus interest, secured by a General Security Agreement over all 
               Canadian assets of the Company                                                    10,000
               Debenture bearing interest at 8.95% requiring payment of accrued interest 
               monthly plus a fixed principal payment of $54 per month, secured by charges on 
               specific equipment                                                                 321
               Loan bearing interest at 6% requiring blended monthly payments of $25, secured 
               by charges on specific equipment                                                   294
                                                                                   60,000 ;       10,615
               Current portion of long-term debt                                                  (2,615)
                                                                                   60,000

             The term and commencement of principal repayments on the $125,000 extendible revolving capital facility may be extended by 
             one year on each anniversary date at the request of the Company and acceptance by the lenders. At December 31, 2006, the 
             Company had $65,000 of undrawn credit available under this facility. On February 13, 2007, the Company closed a US$135,000 
             debt offering and the extendible revolving capital facility was fully repaid. In conjunction with this offering, the revolving term
             credit facility was reduced to $65,000 (see note 18).
             Scheduled principal repayments required in each year to retire long-term debt as at December 31, 2006 are as follows (assum- 
             ing the facility is not extended on the next anniversary date being December 5, 2007):
               (000s)                                                                                ($)
               2008                                                                               9,600
               2009                                                                               9,600
               2010                                                                               9,600
               2011                                                                               31,200
                                                                                                  60,000



          6. CAPITAL STOCK 
             Authorized capital stock consists of an unlimited number of common shares. 
             The continuity of issued common shares and related values are as follows:
                                                                                    Shares        Amount
                                                                                       (#)        ($000s)
               December 31, 2004                                                18,107,277      136,473
               Two-for-one split, February 17, 2005                             18,107,277           
               Issued upon exercise of stock options                               118,722        2,294
               December 31, 2005                                                36,333,276      138,767
               Issued upon exercise of stock options                               55,132         1,074
               December 31, 2006                                                36,388,408      139,841

             On February 7, 2005, the shareholders of the Company voted in favour of a two-for-one subdivision of the Companys 
             common shares that took effect on February 17, 2005. Comparative per share information has been restated to reflect the two- 
             for-one split.
             The weighted average number of common shares outstanding for the year ended December 31, 2006 was 36,286,332 basic 
             and 36,547,182 diluted (2005 - 36,216,499 basic and 36,600,855 diluted). The difference between basic and diluted shares is 
             attributable to the dilutive effect of stock options issued by the Company and the shares held in trust (see note 7).




PG 46 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
7. SHARES HELD IN TRUST

   The Company has established a Trust to purchase and hold Company stock on behalf of certain employees who have elected to 
   receive a portion of their annual bonus entitlement in the form of Company shares. During 2006, 113,508 shares were pur- 
   chased on the open market at a cost of $3,869 (2005 - 43,637 shares at a cost of $1,385). These shares vest with employees 
   in March of the year following their purchase at which time they are distributed to those individuals participating in the plan.
   These shares are not considered outstanding for purposes of calculating basic earnings per share, but are included in the 
   calculation of diluted earnings per share.















                                    (#)       ($)       (#)       ($)


     Outstanding, January 1      818,578    18.39   840,200     16.07

     Granted during the year     776,550    25.89   140,100     29.92

     Exercised for common shares (55,132)   15.73   (118,722)   15.73

     Forfeited                   (34,200)   27.18   (43,000)    17.97




     The number of options outstanding at January 1, 2005 has been adjusted to reflect the two-for-one common share split on 
     February 17, 2005.

     All stock options vest equally over three years and expire three and one-half years from the date of grant. The estimated fair
     value of options granted is determined by using the Black-Scholes option pricing model with the following assumptions: risk- 
     free interest rate of 4%, average expected life of 2.83 years, expected volatility of 34% to 36% and expected dividends of 
     $0.10 per annum. This amount is charged to compensation expense over the vesting period. When stock options are exer- 
     cised, the proceeds, together with the amount of compensation expense previously recorded in contributed surplus, is added 
     to capital stock.

   (b) Stock Units

     Commencing in 2004, the Company began granting deferred stock units to its outside directors. These units vest one year 
     from the date of grant and are settled in either cash (equal to the market value of the underlying shares at the time of exer-
     cise) or in Company shares purchased on the open market. The fair value of the deferred stock units is recognized equally 
     over the one-year vesting period, based on the current market price of the Companys shares. During 2006, $328 of com- 
     pensation expense was recognized for deferred stock units (2005  $1,860).

     Commencing in 2004, the Company began granting performance stock units to the Companys most senior officers who 
     are not included in the stock option plan. The amount of the grants earned is linked to corporate performance and vest one 
     year from the date of grant. As with the deferred stock units, performance stock units are settled in either cash or Company 
     shares purchased on the open market. During 2006, $265 of compensation expense was recognized for performance stock 
     units (2005  $395).

     Changes in the Companys obligations under the deferred and performance stock unit plans, which arise from fluctuations in 
     the market value of the Companys shares underlying these compensation programs, are recorded as the share value changes.




9. INCOME TAXES

   The following table summarizes the income tax effect of temporary differences that give rise to the future income tax asset at 
   December 31:

    As at December 31,                                 2006      2005
    (000s)                                              ($)       ($)

    Capital assets                                  (14,715)    9,038
    Canadian exploration expenses                     11,081    7,668

    Losses carried forward                            5,405     7,778

    Deferred compensation payable                     2,939     2,486
    Deferred financing and share issue costs          2,269     2,328

    Other                                             2,069     2,831
                                                      9,048 !   32,129








                                                    CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 47
  Notes to Consolidated Financial Statements 














           9. INCOME TAXES (continued)

              The provision for incomes taxes in the statement of operations and retained earnings varies from the amount that would be 
              computed by applying the expected tax rate of 32.12% (2005  33.62%) to income before income taxes. The principal reasons 
              for differences between such expected income tax expense and the amount actually recorded are as follows:

                As at December 31,                                                           2006            2005
                (000s)                                                                         ($)            ($)


                Income before tax                                                         81,493           62,561

                Income tax rate (%)                                                         32.12          33.62

                Computed expected income tax expense                                      26,176           21,033 
                Increase (decrease) in income taxes resulting from:

                  Drawdown of deferred credit                                             (20,811)       (19,782)
                  Non-deductible expenses                                                   1,811            910

                  Foreign withholding taxes                                                 1,071 !          244

                  Foreign tax rate differentials                                            1,333            411 
                  Prior year tax losses and future tax benefits of subsidiaries

                     recognized in the current year                                         (673)             

                  Future income tax adjustment from tax rate reduction                         87             

                  Translation of foreign subsidiaries                                        289              

                  Tax losses and future tax benefits of foreign subsidiaries not recognized               1,102

                  Large corporations tax                                                                    234

                  Adjustments to Denison tax pools                                                        (1,670)

                  Other                                                                     (240) i          (13)

                                                                                            9,043          2,469





           10. DEFERRED CREDIT

              On the amalgamation of Denison Energy Inc. (Denison) and the Company on March 24, 2004, a future income tax asset asso 
              ciated with Denisons income tax pools was recognized in the accounts. Denison had tax pools of approximately $220,000 for 
              federal income tax purposes and $170,000 for provincial income tax purposes. After tax affecting these pools at applicable 
              federal and provincial income tax rates, a future income tax asset of $70,771 was recorded. The fair value paid for the tax pools 
              acquired was estimated to be $11,000. The difference between the future income tax asset recognized and the fair value of 
              these tax pools was recorded as a deferred credit in the amount of $59,771.




           11. RELATED PARTY TRANSACTIONS

              During 2006, the Company purchased $26,890 (2005  $17,487) of products and services from a company in which it holds 
              a 30% equity interest (see also note 2 (f)). At December 31, 2006, accounts payable included $7,234 of indebtedness to the 
              related party (December 31, 2005  $2,941).




           12. COMMITMENTS

              The Company has lease commitments for premises, equipment, vehicles and storage facilities under agreements requiring 
              aggregate minimum payments over the next five years, from December 31, 2006, as follows:

                (000s)                                                                                        ($)

                2007                                                                                       6,649

                2008                                                                                       3,631

                2009                                                                                       3,057

                2010                                                                                       2,795
                2011                                                                                       2,568

                Thereafter                                                                                 7,437

                                                                                                           26,137


              The Company has obligations for the purchase of products and services over the next two years that total approximately $18.4 million




           13. FINANCIAL INSTRUMENTS

              The Companys financial instruments that are included in the consolidated balance sheet are comprised of cash, accounts 
              receivable, all current liabilities and long-term debt.





PG 48 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
13. FINANCIAL INSTRUMENTS (continued)
     (a) Fair Values of Financial Assets and Liabilities
         The fair values of financial instruments that are included in the consolidated balance sheet, except bank loans and long-term 
         debt, approximate their carrying amounts due to the short-term maturity of those instruments. The fair value of long-term 
         debt is not materially different from its carrying amounts since the interest rates approximate a market rate of interest.
     (b) Credit Risk
         A substantial portion of the Companys accounts receivable are with customers in the oil and gas industry and are subject 
         to normal industry credit risks.
     (c) Interest Rate Risk
         The Company is exposed to interest rate cash flow risk on debt subject to floating interest rates. The Companys effective 
         interest rate for the year ended December 31, 2006 was 5.75% (December 31, 2005  5.14%).


14. SUPPLEMENTAL INFORMATION
     Change in non-cash operating assets and liabilities are as follows:
       Years Ended December 31,                                                                        2006
       (000s)                                                                                             ($)                ($)
       Accounts receivable                                                                            3,105            (30,976)
       Inventory                                                                                      (7,242)          (3,457)
       Prepaid expenses and deposits                                                                  (5,244)              (856)
       Accounts payable and accrued liabilities                                                       17,673           10,910
       Income taxes payable                                                                           1,857  !             625
       Other long-term liabilities                                                                    (1,563)            2,167
                                                                                                      8,586            (21,587)
       Interest paid                                                                                  2,418                359
       Income taxes paid                                                                              5,681                443


15. CONTINGENCIES 
     Greek Operations
     As a result of the acquisition and amalgamation with Denison in 2004, the Company assumed certain legal obligations relating 
     to Denisons Greek operations.
     In 1998, a consortium in which a Greek subsidiary of Denison participated, terminated employees in Greece as a result of the 
     cessation of its oil and gas operations in that country. Several groups of employees have filed claims alleging that their termi- 
     nation was invalid and that their severance pay was improperly determined.
     In 1999, the largest group of plaintiffs received a ruling from the Athens Court of First Instance that their termination was invalid 
     and that compensation was due to the employees. This decision was appealed to the Athens Court of Appeal, which allowed the 
     appeal in 2001 and annulled the above-mentioned decision of the Athens Court of First Instance. The said group of employees 
     has filed an appeal with the Supreme Court of Greece, which is scheduled to be heard on May 29, 2007.
     Several other smaller groups of employees have filed similar cases in various courts in Greece. Some of these cases were heard 
     in 2004. In general, the finding of these courts has been that the termination of the employees was valid and in some instances 
     have awarded the employees immaterial amounts of additional compensation and in one case have referred the matter back to 
     a lower court to be reheard based on more specific grounds.
     As a result of the above-mentioned court hearings, a majority of the number of former employees with respect to these smaller 
     groups of claimants have received payment of the immaterial amounts awarded to them and waived their right of recourse to 
     the Supreme Court of Greece. The remainder have filed an appeal to the Supreme Court of Greece or have advised that they are 
     waiting for the outcome of the May 29, 2007 hearing of the Supreme Court of Greece before proceeding further.
     The direction and financial consequence of the potential decision in these actions cannot be determined at this time. 
     Russian Value Added Taxes
     The Company is involved in a dispute with the Russian tax authorities regarding the recovery of Value Added Taxes (VAT), 
     which it has paid on the importation of equipment into Russia. The amount in dispute is the equivalent of $4,500, which is 
     included in accounts receivable at December 31, 2006. The Company has successfully defended similar VAT challenges in the 
     past and believes the matter will be resolved in its favour within the coming months.





                                                                                                      CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 4
  Notes to Consolidated Financial Statements












         16. SEGMENTED INFORMATION

            The Companys activities are conducted in three geographic markets: Canada, the United States and Russia. All activities are 
            related to fracturing, coiled tubing, cementing and well stimulation services for the oil and gas industry.

                                                                 United Intersegment
                                              Canada    Russia   States Eliminations
             (000s)                              ($)      ($)      ($)

             Year Ended December 31, 2006
             Revenue                        318,018    22,123   86,277
             Operating income (loss) (1)    81,033     (2,389)  28,368
             Segmented assets (2)           438,879    66,012   35,547
             Capital expenditures           114,402    35,615   5,216
             Goodwill                         6,003               

             Year Ended December 31, 2005
             Revenue                        280,068    1,212    33,045
             Operating income (loss) (1)    77,468     (2,489)  4,652
             Segmented assets (2)           336,018    14,061   21,133
             Capital expenditures           85,566     10,175   6,021
             Goodwill                         6,003               

             (1) Operating income (loss) is defined as revenue less operating expenses (excluding depreciation and amortization) and selling, general and administration expenses
             (2) Assets operated by the Companys U.S. subsidiary were acquired through a lease arrangement with the Canadian parent company. The cost base of these assets 
              was $63,274 at December 31, 2006 ($35,149 at December 31, 2005).

















         17. RECONCILIATION OF THE CONSOLIDATED FINANCIAL STATEMENTS TO UNITED STATES 
            GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

            These consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting 
            principles (GAAP) which, in most respects, conforms to U.S. GAAP. Any differences in accounting principles between Canadian 
            GAAP and U.S. GAAP as they apply to the Company are not material, except as described below. The adjustments below are 
            measurement differences only and do not reflect any disclosure differences that may exist between Canadian GAAP and 
            U.S. GAAP.

            The application of U.S. GAAP would not affect consolidated net income or the consolidated balance sheets as reported, except 
            as discussed below.

            (a) Stock-Based Compensation

              Under Canadian GAAP, the Company recognizes compensation cost for the fair value of stock option grants over the vesting 
              period of these grants as a charge to compensation expense and a credit to contributed surplus. The Company also recog- 
              nizes compensation cost, over their vesting period, for the fair value of deferred stock units and performance stock units, 
              estimated based on the current market price of the Companys shares.

              Effective January 1, 2006, the Company adopted, using the modified prospective transitional provisions, the revised 
              standards outlined under SFAS 123R Share-Based Payment. Previously, the Company followed SFAS 123 Accounting 
              for Stock-Based Compensation, which determined stock-based compensation cost for both the stock options and stock 
              units using the same method as under Canadian GAAP with no adjustments to reported net income for the year ended 
              December 31, 2005.

              Under SFAS 123R, the Company is required to determine and incorporate a forfeiture multiplier into its calculation of stock- 
              based compensation cost for its stock options and stock units. Under Canadian GAAP, the Company accounts for forfeitures 
              as they occur. The Company estimates that the impact of any forfeiture multiplier would not result in a significant difference 
              between Canadian and U.S. GAAP.

              In addition, the fair value of the Companys stock units would be estimated using a Black-Scholes option pricing model, 
              remeasured at each reporting date, as opposed to valuing the stock units based on the current market price of the 
              Companys shares. The Company estimates that the impact of remeasuring stock units outstanding using the Black-Scholes 
              model would not result in a significant difference between Canadian and U.S. GAAP.



PG 50 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
17. RECONCILIATION OF THE CONSOLIDATED FINANCIAL STATEMENTS TO UNITED STATES 
  GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (continued)
  (b) Variable Interest Entities
    The variable interest entities (VIE) accounting standard under Canadian GAAP is similar to U.S. GAAP FIN 46R, 
    Consolidation of Variable Interest Entities. Under the Canadian GAAP transitional provisions, adoption was required for 
    years commencing January 1, 2005, whereas under U.S. GAAP, adoption was required one year earlier commencing on 
    January 1, 2004. Under Canadian GAAP, the Company identified and consolidated one VIE for the years ended December 31, 
    2006 and 2005, which also would have been consolidated for U.S. GAAP purposes.
  (c) Future Income Taxes
    The future income tax accounting standard under Canadian GAAP is similar to U.S. GAAP SFAS 109, Accounting for Income 
    Taxes. Pursuant to Canadian GAAP, substantively enacted tax rates are used to calculate future income tax, whereas U.S. 
    GAAP applies enacted tax rates. There are no differences for the years ended December 31, 2006 and 2005 relating to 
    income tax rate differences.
  (d) Comprehensive Income
    U.S. GAAP requires the presentation of net income and comprehensive income. Comprehensive income includes net income 
    plus other comprehensive income items as specifically identified by U.S. GAAP. The Company currently has no financial items 
    that would be included as other comprehensive income, and therefore, net income and comprehensive income are equiva- 
    lent.
  (e) Statements of Cash Flows and Operations
    The differences between Canadian GAAP and U.S. GAAP have not resulted in any significant variances concerning the con- 
    solidated statements of cash flows as reported, except that under U.S. GAAP the presentation of funds from operations as 
    a sub-total in the operating activities section of the consolidated statements of cash flows would not be permitted.
    In addition, under Canadian GAAP, bank overdrafts used to manage day-to-day cash can be classified as cash and cash equiv- 
    alents. Under U.S. GAAP, bank overdrafts are liabilities that should be considered a form of short-term financing and classified 
    as cash flows from financing activities. The effect of this is an outflow of cash from financing activities of $8,658 for the year
    ended December 31, 2006 (2005 inflow of cash from financing activities of $12,065). As a result, the consolidated balance 
    sheet would be adjusted to reflect cash and cash equivalents of $8,987 (2005  $1,252) and bank indebtedness of $3,407 
    (2005  $12,065).
  (f) Recently Issued Accounting Pronouncements
    The following are standards and interpretations that have been issued by the Financial Accounting Standards Board 
    (FASB), which are not yet in effect for the years presented but would comprise U.S. GAAP when implemented:
    In July 2006, FASB issued FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes  an 
    Interpretation of FASB Statement No. 109. FIN 48 provides guidance for recognizing and measuring uncertain tax positions, 
    as defined in SFAS 109, Accounting for Taxes. FIN 48 prescribes a threshold condition that a tax position must meet for 
    any of the benefit of the uncertain tax position to be recognized in the financial statements. Guidance is also provided 
    regarding de-recognition, classification and disclosure of these uncertain tax positions. FIN 48 is effective for fiscal years 
    beginning after December 15, 2006. The Company has not yet determined the impact on the financial position, results of 
    operations or cash flows from FIN 48.
    In February 2006, the FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial Instruments  An Amendment of 
    FASB Statement Nos. 133 and 140 (SFAS 155). SFAS 155 simplifies the accounting of certain hybrid financial instruments 
    under SFAS 133 by permitting fair value remeasurement for financial instruments containing an embedded derivative that 
    otherwise would require separation of the derivative from the financial instrument. SFAS 155 is effective for all financial 
    instruments acquired, issued or subject to a remeasurement event occurring in fiscal years beginning after September 15, 
    2006. The Company does not expect that SFAS 155 will have a material impact on its financial position, results of opera- 
    tions or cash flows.
    In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, 
    establishes a framework for measuring fair value under GAAP and expands disclosures about fair value measurements. The 
    statement is effective for fair value measures already required or permitted by other standards for financial statements 
    issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The Company has 
    not yet determined the impact on its financial position, results of operations or cash flows from SFAS 157.


18. SUBSEQUENT EVENTS
  On February 13, 2007, the Company completed a private placement of unsecured senior notes for an aggregate amount of 
  US$135,000. The notes are due in full on February 15, 2015 and bear interest at 7.75% payable semi-annually. A portion of the 
  proceeds of the offering was used to repay the Companys existing operating and revolving term credit facilities. In conjuction 
  with this offering, the Companys existing revolving term credit facility was reduced from $125,000 to $65,000.




                                            CALFRAC WELL SERVICES LTD.  2006 ANNUAL REPORT  PG 51
 Historical Review












          Years Ended December 31,                2006 i  2005      2004      2003
          (000s, except per share and unit data)  ($)       ($)      ($)        ($)

          Financial Results
          Revenue                             426,418 !  314,325  241,379   156,558   96,066
          Gross margin (1)                    135,362    109,098  83,783    53,090    31,271
          Net income                          72,450     60,113   45,630    19,649    10,024 
            Per share  basic (2)              2.00       1.66      1.45      1.01      0.52 
                    diluted (2) 1.98 !                   1.64      1.45      1.01      0.52
          Cash flow from operations (3)       101,932    80,592   58,946    30,309    18,138 
            Per share  basic (2)              2.81       2.23      1.87      1.56      0.93 
                    diluted (2) 2.79                     2.20      1.87      1.56      0.93
          EBITDA (4)                          109,533    79,611   64,027    41,826    23,923 
            Per share  basic (2)              3.02 !     2.20      2.03      2.15      1.23 
                    diluted (2) 3.00                     2.18      2.03      2.15      1.23
          Capital expenditures                155,478    97,614   51,327    24,722    22,362

          Financial Position
          Current assets                      110,911    100,057  88,630    48,350
          Total assets                        454,190    336,815  266,196   130,319
          Working capital                     31,225 !   39,396   52,343    6,764
          Long-term debt                      60,000 !   8,000    3,958     23,781
          Future income tax asset (liability)  9,048     32,129   53,311    (7,521)
          Shareholders equity                303,510    234,021  174,956   57,431

          Common Share Data (2) 
          Common shares outstanding (#)
            At December 31                    36,388     36,333   36,214      n/a
            Weighted average                  36,286     36,216   31,542      n/a
          Share trading
            High ($)                           46.21     41.00    23.75       n/a
            Low ($)                            18.07     22.50    11.60       n/a
            Close ($)                          22.10     40.30    23.63       n/a
            Volume (#)                        39,272     26,774   14,150      n/a

                                                  (#)       (#)      (#)        (#)

          Operating Results 
          Fracturing spreads
            Conventional fracturing               21        17       12         9
            Coalbed methane                       4 !       4        2          1
            Total                                 25        21       14         10
          Coiled tubing units                     14        11       11         11
          Cementing units                         13        9        4          
          1. Gross margin is defined as revenue less operating expenses excluding depreciation and amortization. Gross margin is a measure that does not have any standardized 
           meaning prescribed under GAAP, and accordingly, may not be comparable to similar measures used by other companies.
          2. Historical per share information has been adjusted for the two-for-one stock split approved by shareholders on February 7, 2005.
          3. Cash flow is defined as funds provided by operations, as reflected in the consolidated statement of cash flows. Cash flow and cash flow per share are measures that 
           provide shareholders and potential investors with additional information regarding the Companys liquidity and its ability to generate funds to finance its operations. 
           Management utilizes these measures to assess the Companys ability to finance operating activities and capital expenditures. Cash flow and cash flow per share are not 
           measures that have any standardized meaning prescribed under GAAP, and accordingly, may not be comparable to similar measures used by other companies.
          4. EBITDA is defined as income before interest, taxes, depreciation and amortization. EBITDA is presented because it is frequently used by securities analysts and others for
           evaluating companies and their ability to service debt. EBITDA is a measure that does not have any standardized meaning prescribed under GAAP, and accordingly, may not 
           be comparable to similar measures used by other companies.


















PG 52 > CALFRAC WELL SERVICES LTD. OWC > 2006 ANNUAL REPORT
BOARD OF DIRECTORS >                HEAD OFFICE > 
Ronald P. Mathison - Chairman (1)(2)411 Eighth Avenue S.W. 
                                    Calgary, Alberta T2P 1E3 
                                    Phone: (403) 266-6000 
                                    Toll Free: 1-866-770-3722 
Chairman & Chief Executive Officer  Fax: (403) 266-7381 
ExAlta Energy Inc                   E-Mail: info@calfrac.com
Gregory S. Fletcher (1)(2)          Website: www.calfrac.com



                                    Calgary - Head Office 
                                    Edson
                                    Grande Prairie 
                                    Medicine Hat
                                    Red Deer 
                                    Strathmore

President & Chief Executive Officer 
Calfrac Well Services Ltd.          Denver - Regional Office 
                                    Grand Junction 
                                    Platteville





Douglas R. Ramsay                   Moscow - Regional Office 
President & Chief Executive Officer Khanty-Mansiysk 
                                    Noyabrsk
                                    Purpe









Vice President, Technical Services
John L. Grisdale
Vice President, Business Developmen
Stephen T. Dadge
Vice President, Corporate Services

                                    For information concerning lost share certificates and 
                                    estate transfers or for a change in share registration or 
                                    address, please contact the transfer agent and registrar 
                                    at 1-800-564-6253 or (403) 267-6800, or by e-mail at 
                                    service@computershare.com, or write to:





                                    STOCK EXCHANGE LISTING 
                                    Toronto Stock Exchange



                                    The Annual Meeting of Shareholders of Calfrac Well Services 
                                    Ltd. will be held on May 9, 2007 at 3:30 p.m. (Calgary time)
                                    in the McMurray Room of the Calgary Petroleum Club, 
                                    Calgary, Alberta. All shareholders are cordially invited and
                                    encouraged to attend. Shareholders who are unable to attend 
                                    the Meeting are requested to complete and return the 
                                    Instrument of Proxy to Computershare Trust Company of 
                                    Canada at their earliest convenience.
                                               Left to Right:
                       James S. Blair (3) Ronald P. Mathison Chairman (1)(2) R. T. (Tim) Swinton (1)(2) Martin Lambert (3) 
                                     Gregory S. Fletcher (1)(2) Douglas R. Ramsay
                     (1) Member of the Audit Committee (2) Member of the Compensation Committee (3) Member of the Corporate Governance and Nominating Committee
e




















                                              Left to Right (standing):
                     Donald R. Battenfelder Vice President, Operations Tom J. Medvedic Vice President, Finance & Chief Financial Officer 
                       Dwight M. Bobier Vice President, Technical Services Douglas R. Ramsay President & Chief Executive Officer 
                         Gordon A. Dibb Executive Vice President & Chief Operating Officer Matthew L. Mignault Controller
                                              Left to Right (seated):
                         John L. Grisdale Vice President, Business Development Michael D. Olinek Corporate Controller 
                                     Stephen T. Dadge Vice President, Corporate Services
www.calfrac.co

<MSTARMODIFIED TYPE=BS><54>
Consolidated Balance Sheets













     As at December 31,                                                               2006           2005
     (000s)

     Assets
     Current assets
        Cash and cash equivalents (note 4)                                           5,580             
        Accounts receivable                                                        84,481         91,693
        Inventory                                                                  13,387           6,145
        Prepaid expenses and deposits                                                7,463          2,219
                                                                                   110,911        100,057
     Capital assets (note 3)                                                       327,832       198,302
     Long-term investment                                                             396             324
     Goodwill                                                                        6,003          6,003
     Future income taxes (note 9)                                                    9,048        32,129
                                                                                   454,190       336,815

     Liabilities

     Current liabilities
        Bank indebtedness (note 4)                                                               10,813
        Accounts payable and accrued liabilities (note 11)                         77,344         46,748
        Income taxes payable                                                         2,342            485
        Current portion of long-term debt (note 5)                                                 2,615
                                                                                   79,686         60,661
     Long-term debt (note 5)                                                       60,000           8,000
     Other long-term liabilities                                                     4,743          6,306
     Deferred credit (note 10)                                                       6,251        27,827
                                                                                   150,680        102,794

     Shareholders equity 

     Capital stock (note 6)                                                        139,841        138,767
     Shares held in trust (note 7)                                                   (3,869)        (1,385)
     Contributed surplus                                                             4,393          2,317
     Retained earnings                                                             163,145        94,322
                                                                                   303,510        234,021
                                                                                   454,190        336,815
     Commitments and contingencies (notes 12 and 15)
</MSTARMODIFIED TYPE=BS>
<MSTARMODIFIED TYPE=CF><49>
Consolidated Statements of Cash Flows













     Years Ended December 31,                                                   2006         2005
     (000s)

     Cash provided by (used in):
     Operating activities
        Net income for the year                                               72,450        60,113 
        Items not involving cash
            Depreciation and amortization                                     25,699        17,179
            Stock-based compensation                                          2,283         2,093
            Equity share of income from long-term investments                   (72)          (324)
            Loss on disposal of capital assets                                  67            152
            Future income taxes                                               1,505         1,400
            Non-controlling interest                                                         (21)
        Funds provided by operations                                          101,932       80,592
        Net change in non-cash operating assets and liabilities (note 14)     8,586        (21,587)
                                                                              110,518       59,005
     Financing activities
        Issue of long-term debt (note 5)                                      56,583        12,013
        Long-term debt repayments                                             (7,198)       (9,000)
        Dividends                                                             (3,627)      (3,623)
        Purchase of common shares (note 7)                                    (3,869)      (1,385)
        Net proceeds on issuance of common shares                               867         1,867
                                                                              42,756         (128)

     Investing activities
        Purchase of capital assets                                          (155,478)       (97,614)
        Proceeds on disposal of capital assets                                4,289           52
        Acquisition of subsidiary, net of cash acquired                                    (3,000)
        Net change in non-cash working capital                                14,308        3,042
                                                                            (136,881)       (97,520)
     Increase (decrease) in cash position                                     16,393        (38,643)
     (Bank indebtedness) cash and cash equivalents, beginning of year         (10,813)      27,830
     Cash and cash equivalents (bank indebtedness), end of year               5,580         (10,813)
</MSTARMODIFIED TYPE=CF>
<MSTARMODIFIED TYPE=IS><35>
Consolidated Statements of Operations and Retained Earnings



in thousands
year ended december 31
                                
                                                           2006      2005

        revenue                                           426418    314325
        Expenses
          Operating                                       291,056   205,227
          Selling, general and administrative             28,350    29,467
          Depreciation                                    25,699    17,143
          Amortization of intangibles                                36
          Interest expense (income)                       2,341      (129)
          Equity share of income 
            from long-term investments                     (72)     (324)
          Foreign exchange (gains) losses and other       (2,516)    192
          Loss on disposal of capital assets                67       152

        pretax income                                     63407      57644
        Income taxes (note 9)
          Current                                         7,538      1069
          Future                                          1,505      1400

                                                           9043      2469

        Net income for the year                           72,450    60,113
       
        earnings per share
         basic                                                2      1.66
         diluted                                            1.98     1.64
</MSTARMODIFIED TYPE=IS>
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