GFS Gasfrac Energy Services

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES 


GASFRAC Energy Services Inc. ("GASFRAC" or the "Company") (TSX VENTURE:GFS) is
pleased to announce its 2011 capital expenditure program of $150 million
dollars. The 2011 capital program will see GASFRAC expand its hydraulic
horsepower ("HHP") by 45% from 105,000 HHP in Q1 2011 to 152,500 HHP in Q4 2011.
In addition, the build will not only focus on HHP, but will include a 100%
increase in proppant and fluid handling capabilities of the Company. The
increase in proppant and fluid handling equipment will allow the Company to
strive toward a capital balance of three proppant and fluid handling systems per
set of HHP. This will enhance the utilization of the HHP and allow for larger
volumes of LPG to be pumped in a single fracturing stage. As part of this
capital expansion, GASFRAC will construct a fracturing simulator which will be
used as a training tool for new employees as the Company staffs the additional
equipment. It is anticipated that the assets from this capital build program
will be delivered in four sets with the first assets being deployed and
on-stream in late August 2011 with the remaining assets being fully deployed and
on-stream by the end of November 2011. 


GASFRAC will be financing the capital program through a combination of cash,
debt and cash proceeds from the sale of common shares. GASFRAC has entered into
an agreement with a syndicate of underwriters led by Raymond James Ltd.
(collectively the "Underwriters") pursuant to which the Underwriters have agreed
to purchase on a "bought deal" basis 11,243,000 common shares ("Common Shares")
of GASFRAC at a price of $8.45 per Common Share (the "Offering Price") for
aggregate gross proceeds of $95,003,350 (the "Offering"). 


GASFRAC has also granted the Underwriters an option (the "Over-Allotment
Option") to purchase up to an additional 1,686,450 Common Shares at the Offering
Price to cover over-allotments, if any, for additional gross proceeds of up to $
14,250,502. The Over-Allotment Option is exercisable in whole or in part at the
sole discretion of the Underwriters for a period of 30 days following the
closing of the Offering.


Pursuant to the Offering, the Common Shares will be offered in all provinces of
Canada, except Quebec, by way of a short form prospectus and by way of private
placement in the United States pursuant to exemptions from the registration
requirements pursuant to Rule 144A and/or Regulation D of the United States
Securities Act of 1933. Closing of the Offering is expected to occur on or about
December 22, 2010 and is subject to certain customary conditions including, but
not limited to, the receipt of all necessary approvals including the approval of
the TSX Venture Exchange.


FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking information and statements
that are based on GASFRAC's current expectations, estimates, projections and
assumptions in light of its experience and its perception of historical trends.
In this news release, such forward-looking information and statements can be
identified by terminology such as "will", "to be", "expected", "anticipated" and
similar expressions.


In particular, this news release contains forward-looking statements and
information relating to the planned use of proceeds, GASFRAC's 2011 capital
expenditure program and timing for the Offering. These forward-looking
statements and information are being made by GASFRAC based on certain
assumptions that GASFRAC has made in respect thereof as at the date of this
document, including: that favourable growth parameters continue to exist in
respect of current and future growth plans (including the ability to finance
such plans on favourable terms); and that GASFRAC's businesses will continue to
achieve sustainable financial results. These forward-looking statements are not
guarantees of future performance and are subject to a number of known and
unknown risks and uncertainties, including, but not limited to: non-performance
of agreements in accordance with their terms; the seasonal nature of the North
American oil and gas industry; the impact of competitive entities and pricing;
reliance on suppliers for components; reliance on intellectual property rights;
the strength and operations of the oil and natural gas production industry and
related commodity prices; the continuation or completion of third-party
projects; regulatory environment and inability to obtain required regulatory
approvals; tax laws and treatment; fluctuations in operating results; the
ability of GASFRAC to raise sufficient capital to complete future projects and
satisfy future commitments; construction delays; labour and material shortages;
and certain other risks detailed from time to time in GASFRAC's public
disclosure documents including, among other things, those detailed under the
heading "Narrative Description of the Business of GASFRAC" in the joint
information circular and proxy statement relating to the amalgamation of GASFRAC
with Kierland Capital Corporation dated July 7, 2010 which can be found at
www.sedar.com.


Accordingly, readers are cautioned that events or circumstances could cause
results to differ materially from those predicted, forecasted or projected. Such
forward-looking statements are expressly qualified by the above statements.
GASFRAC does not undertake any obligation to publicly update or revise any
forward-looking statements or information contained herein, except as required
by applicable laws.

Gasfrac Energy Services (TSXV:GFS)
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Gasfrac Energy Services (TSXV:GFS)
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