CALGARY, ALBERTA--(Marketwire - March 5, 2013) - CWC Well Services Corp. (TSX VENTURE:CWC)("CWC" or the "Company") is pleased to release its operational and financial results for the year ended December 31, 2012. The annual audited Financial Statements and Management's Discussion and Analysis ("MD&A") for the fiscal year ended December 31, 2012 are filed on SEDAR at www.sedar.com.

Highlights for the Year Ended December 31, 2012

• Revenue in 2012 was $112.3 million, an increase of $2.8 million or 3% over the prior year. Activity in the second half of 2012 was lower than in 2011, but still led to marginal increases in revenue year-over-year:
  • Revenue from the Well Servicing segment increased 15% as compared to the prior year with increases in both service rig and coil tubing related revenues primarily from new equipment additions.
  • Revenue from the Other Oilfield Services segment decreased 53% as compared to the prior year impacted by the sale of our nitrogen assets in December 2011 and lower oilfield service activity levels and, consequently, utilization on snubbing and well testing assets, which have a greater exposure to natural gas related activities.
• EBITDAS for 2012 was $25.0 million, a decrease of $3.4 million or 12% compared to the prior year:
  • EBITDAS decreased largely as a result of the sale of the nitrogen assets which occurred in December of 2011 and as such had no contribution to results in 2012 and accounts for 77% of the total EBITDAS decrease for 2012.
  • Snubbing division contribution had a negative impact on EBITDAS as a result of lower natural gas activities in the Western Canadian Sedimentary Basin ("WCSB") which resulted in lower utilization and higher operating costs.
  • Offsetting these negative variances was an increase in EBITDAS contribution from our Well Servicing division coming primarily from our service rigs for the full year impact of the acquisition of 22 service rigs from Trinidad Well Servicing in June 2011 and the addition of four new service rig builds and one recertified service rig in 2012.
• Net income for 2012 was $4.8 million, a decrease of $7.9 million or 62% compared to the prior year. This decrease is due primarily to a charge for deferred income tax expense in 2012 compared to a recovery recorded in 2011 which accounts for $3.1 million of the change year-over-year; a gain on the sale of the nitrogen assets in 2011 of $1.4 million; and decreases as noted above in EBITDAS related to lower oilfield service activity levels and utilization accounting for the remaining $3.4 million change in net income year-over- year.
• In March 2012 the Board of Directors initiated a quarterly dividend policy of $0.01625 per common share resulting in an annualized dividend of $0.065 per common share. For 2012, the Company has declared dividends totaling $10.1 million paid to shareholders. The declaration of dividends reflects CWC's positive view of the sustainability of its cash flows and earnings in the future and the Company's ability to provide a meaningful return on investment for its shareholders without impacting the Company's ability to pursue long- term growth opportunities.
• CWC continued to grow its well servicing fleet with the addition of four new service rigs in 2012 and recertification of an existing single service rig in November 2012 that was not previously in service or included in the rig count. Also in 2012, CWC converted one coil tubing unit to have 2 inch capabilities with longer depth capacity to address increased market demand for deeper horizontal wells. CWC continues to upgrade and replace various support equipment to ensure CWC's fleet remains among the newest and most technologically advanced in the industry.

Financial and Operational Highlights

		YEAR ENDED
$ thousands, except per share amounts, margins and ratios			2012		% Change			2011		% Change			2010
FINANCIAL RESULTS
Revenue
	Well servicing	$	102,807		15	%	$	89,025		68	%	$	53,104
	Other oilfield services		9,525		-53	%		20,477		30	%		15,754
			112,332		3	%		109,502		59	%		68,858
	EBITDAS 1		25,049		-12	%		28,481		119	%		12,994
	EBITDAS margin (%) 1		22	%				26	%				19	%
	Funds from operations 2		25,046		-12	%		28,476		120	%		12,973
	Net income (loss)		4,783		-62	%		12,690		-557	%		(2,774	)
	Net income (loss) margin (%)		4	%				12	%				-4	%
	Dividends declared		10,073		100	%		-		100	%		-
	Dividends paid		7,556		100	%		-		100	%		-
Per share information:
	Weighted average number of shares outstanding - basic		155,332		-1	%		157,021		-1	%		158,959
	Weighted average number of shares outstanding - diluted		159,910		0	%		159,422		0	%		158,959
	EBITDAS 1per share - basic and diluted		0.16		-11	%		0.18		122	%		0.08
	Funds from operations per share - basic and diluted		0.16		-11	%		0.18		122	%		0.08
	Net earnings (loss) per share - basic and diluted		0.03		-62	%		0.08		-563	%		(0.02	)
			2012		% Change			2011		% Change			2010
FINANCIAL POSITION AND LIQUIDITY
	Working capital (excluding debt) 3		10,683		-52	%		22,414		42	%		15,790
	Working capital (excluding debt) ratio		1.8:1					3.4:1					3.2:1
	Total assets		152,680		-4	%		159,774		26	%		127,098
	Total long-term debt		41,841		-13	%		47,941		61	%		29,860
	Shareholders' equity		96,465		-6	%		102,624		14	%		89,986

Notes 1 to 3 - Please refer to the Notes to Financial Highlights at the end of this release.

		2012								2011
OPERATING HIGHLIGHTS		Quarter 4		Quarter 3		Quarter 2		Quarter 1		Quarter 4		Quarter 3		Quarter 2		Quarter 1
WELL SERVICING
Service Rigs
	Number of service rigs, end of period	68		65		65		63		63		63		63		41
	Hours worked	32,059		31,347		21,186		37,543		34,047		33,595		15,333		26,630
	Utilization %	53	%	52	%	36	%	65	%	59	%	58	%	38	%	72	%
Coil Tubing Units
	Number of units, end of period	8		8		8		8		7		6		6		6
	Hours worked	1,463		1,034		417		3,956		2,404		1,448		567		2,960
	Utilization %	30	%	22	%	9	%	90	%	37	%	26	%	10	%	55	%
OTHER OILFIELD SERVICES
Snubbing Units
	Number of units, end of period	7		7		7		7		5		5		5		5
	Hours worked	1,191		574		241		2,065		2,421		1,692		293		1,950
	Utilization %	23	%	11	%	5	%	46	%	53	%	37	%	6	%	43	%
Well Testing Units
	Number of units, end of period	11		11		11		12		12		12		12		12
	Number of tickets billed	204		410		238		468		429		421		178		467

Overview

According to Canadian Association of Oilwell Drilling Contractors ("CAODC"), the average number of active Canadian drilling rigs in Q4 2012 was 376 out of 831 (45%); an increase of 5% compared to the average for Q3 2012 of 330 out of 816 (40%), but a drop of 16% compared to the average for Q4 2011 of 488 out of 804 (61%) drilling rigs. CWC proactively anticipated the drop in drilling activity by shifting over 80% of its service rig work to production maintenance, workovers and abandonments primarily focused on oil-related activities which resulted in Q4 2012 financial results that were better than Q3 2012. While U.S. oil prices remain at healthy levels averaging US$88.15 per barrel for West Texas Intermediate ("WTI") in Q4 2012 compared to US$93.90 per barrel in Q4 2011, the discount differential between Western Canadian Select ("WCS"), the price at which most of our exploration and production ("E&P") customers sell their oil at, and WTI increased from an average of US$12.29 per barrel in Q4 2011 to US$16.35 per barrel in Q4 2012. This discount pricing differential resulted in less urgency from our E&P customers to get new wells drilled and completed in Q4 2012. Continued uncertainty throughout Q4 2012 over resolution of the U.S. fiscal cliff combined with the potential results of the U.S. election and the likelihood of Keystone XL and Northern Gateway pipelines being built on a timely basis, if at all, also contributed to the decision by our E&P customers to slowdown or postpone capital expenditures on drilling new wells. The overall result for CWC was a decrease in the service rig utilization rate of 52% in 2012 compared to 2011 of 57%. As for natural gas, both NYMEX and AECO continue to experience depressed prices with NYMEX averaging US$2.75 per MMbtu in 2012 compared to US$3.99 per MMbtu in 2011. These low natural gas prices continue to have a significant effect on the underutilization of our Coil Tubing, Snubbing and Well Testing assets in Q4 2012.

Revenue for 2012 is up 3% due primarily to the addition of 22 service rigs from the Trinidad Well Servicing ("TWS") acquisition in June 2011 coupled with the addition of five more service rigs from build and recertification programs in 2012 which contributed to a 15% increase in revenue in the Well Servicing segment. This overall revenue increase is offset by the sale in December 2011 of our nitrogen assets in our Other Oilfield Services segment that no longer contribute to revenue in 2012. The nitrogen assets in 2011 contributed $7.0 million in revenue. In addition declines in snubbing activity in 2012 contributed to the 53% decrease in 2012 revenue in the Other Oilfield Services segment. While revenue growth has increased marginally by 3%, EBITDAS has decreased 12% due to the lower activity levels in snubbing in 2012 compared to 2011 and the higher margin nitrogen business which did not contribute to EBITDAS in 2012.

Well Servicing

CWC is the 6^th largest service rig provider in the WCSB, operating a modern fleet of 68 service rigs and 8 coil tubing units as of the date of this report; four new service rigs were built in 2012 and one recertified service rig came into service in the fourth quarter. Rig services include completions, maintenance, workovers and abandonments with depth ratings from 1,500 to 5,000 metres. Our service rig fleet, with its leading edge technology, continues to stand out in an industry characterized by ageing equipment and infrastructure.

During the second quarter of 2011, CWC acquired 22 service rigs from TWS increasing CWC's market share in service rigs and increasing the fleet size at that time by 54%. In 2012, the Company completed the construction of a new slant service rig, two new double service rigs, one new single service rig, and recertified one single service rig not previously in service. Additional growth opportunities for new geographic areas were identified in 2012 which led to the construction of these additional service rigs that increased the active service rig count to 68 service rigs with three more new service rigs being constructed in 2013.

CWC's Class I, II and III coil tubing units have depth ratings from 1,500 to 4,000 metres and are well positioned for the changing demand of our customers for deeper depth capabilities. CWC converted one coil tubing unit to a Class III, 2 inch unit capable of depths of 4,000 meters and was deployed in the field in October 2011, a second unit was deployed to the field before the end of the first quarter of 2012 and a third unit, committed to in the 2012 capital budget, is scheduled to be available in Q3 2013.

Well Servicing division revenue in 2012 was up 15% at $102.8 million compared to $89.0 million in the 2011. The $13.8 million year over year increase was largely due to the increased fleet from the TWS acquisition and new equipment additions in service rigs and coil tubing. While utilization has decreased year over year this was partially offset by rate increases implemented in Q4 2011 in response to higher operating costs, particularly for labour and fuel. Average hourly rates on service rigs improved approximately 8% to $783 per hour in 2012 as compared to $727 per hour in 2011. Coil tubing average hourly rates improved 39% to $1,053 per hour in 2012 compared to $757 per hour in 2011 driven by our focus on higher margin work and contribution of our higher depth capacity coil tubing units which have a higher price per hour given the demand for these units. CWC continues to monitor its pricing in the competitive landscape and anticipate stable margins in 2013.

Total service rig hours in 2012 have increased 11% over 2011. The increase is primarily attributable to the acquisition of TWS and new equipment additions. Service rig hours decreased 6% for Q4 2012 compared to Q4 2011. The decrease is consistent with the drop in overall industry utilization for service rigs as noted earlier. Utilization of our well service equipment has risen from the lows experienced in 2009 driven by increased spending on exploration and development as a result of generally higher oil prices and an increase in the number of wells now producing oil compared to that of natural gas.

Other Oilfield Services

CWC's Other Oilfield Services division provides a variety of services for the completion and production phases of oil and natural gas wells from its 8 snubbing units and 11 well testing units. The Other Oilfield Services division revenue decreased by 53% to $9.5 million in 2012 from $20.5 million in 2011. During 2011, revenue of $7.0 million was generated from the nitrogen assets which were sold in December 2011. The remaining $4.0 million decrease was impacted by a decrease of $2.6 million from the snubbing units, which continue to be affected by low natural gas prices, and a decrease of $1.4 million from well testing as a result of lower completions activity in the industry, particularly in the second half of 2012.

In response to changing market conditions, the Company completed the conversion of three of its snubbing units from 3,000 psi to 5,000 psi to reflect the need for higher pressure units and added e-gress safety systems that exceed minimum safety requirements in the industry.

Outlook

While there was a delay in spending by our oil focused exploration and production ("E&P") customers in Q4 2012, current utilization levels in Q1 2013 suggest a modest return to higher activity levels as would be expected in the winter months. CWC intends to continue providing best-in-class services to our E&P customers through "Quality People Delivering Quality Service" with the most relevant, youngest and advanced fleet of equipment. In Q4 2012, CWC took delivery of three additional service rigs increasing the total active service rig fleet to 68 as at December 31, 2012. CWC anticipates that an additional three new service rigs currently being built will be operational in Q3 2013. We will continue to evaluate opportunities to grow the Well Servicing business segment through a disciplined approach in 2013, which may include the addition of new slant service rigs to service the growing number of steam assisted gravity drainage ("SAGD") wells.

The Company recently announced that its Board of Directors declared a quarterly dividend of $0.01625 per common share for the first quarter of 2013. The dividend will be paid on April 15, 2013 to shareholders of record on March 29, 2013. The ex-dividend date is March 26, 2013. This dividend is an eligible dividend for Canadian income tax purposes. The declaration of dividends is determined on a quarter-by-quarter basis by the Board of Directors and reflects CWC's positive view on the sustainability of its cash flow and earnings in the future.

Fourth Quarter Overview

			THREE MONTHS ENDED								YEAR ENDED
			DECEMBER 31								DECEMBER 31
$ thousands, except per share amounts, margins and ratios			2012			2011		% Change			2012			2011		% Change
FINANCIAL RESULTS
Revenue
	Well servicing	$	27,135		$	29,116		(7	%)	$	102,807		$	89,025		15	%
	Other oilfield services		2,261			6,871		(67	%)		9,525			20,477		(53	%)
			29,396			35,987		(18	%)		112,332			109,502		3	%
	EBITDAS 1		7,050			10,630		(34	%)		25,049			28,481		(12	%)
	EBITDAS margin (%) 1		24	%		30	%				22	%		26	%
	Funds from (used in) operations 2		7,050			10,630		(34	%)		25,046			28,476		-12	%
	Net income		1,729			7,115		(75	%)		4,783			12,690		(62	%)
	Net income margin (%)		6	%		20	%				4	%		12	%
	Dividends declared		2,517			-					10,073			-
	Dividends paid		2,518			-					7,556			-
Per share information
	Weighted average number of shares outstanding - basic		154,853			156,550					155,332			157,021
	Weighted average number of shares outstanding - diluted		159,419			159,810					159,910			159,422
	EBITDAS 1per share - basic and diluted		0.05			0.07					0.16			0.18
	Funds from operations per share - basic and diluted		0.05			0.07					0.16			0.18
	Net earnings per share - basic and diluted		0.01			0.05					0.03			0.08
			DECEMBER 31,			DECEMBER 31,
			2012			2011
FINANCIAL POSITION AND LIQUIDITY
	Working capital (excluding debt) 3		10,683			22,414
	Working capital (excluding debt) ratio		1.8:1			3.4:1
	Total assets		152,680			159,774
	Total long-term debt (including current portion)		41,841			47,941
	Shareholders' equity		96,465			102,624

Revenue

Revenue for the fourth quarter of 2012 was $29.4 million; a decrease of $6.6 million or 18% from the fourth quarter of 2011 and an increase of $2.5 million from the third quarter of 2012. The increase from the third quarter of 2012 is expected due to the seasonality of the industry, resulting in Q4 and Q1 representing the peak periods for activity.

During the fourth quarter of 2012 activity levels were lower than in the same period of 2011 as E&P customers moderated their spending noting lower commodity price and capital budget constraints for new well drilling brought about by pipeline capacity issues. CWC did see a marginal increase in the Service Rig utilization from Q3 2012 levels, which is consistent with seasonal increases. However, the Coil Tubing, Snubbing and Well Testing divisions were significantly affected by the slowdown in industry activity levels as a result of depressed natural gas prices which continued in Q4 2012. In addition, the sale of the nitrogen assets in December 2011 meant that no revenue contribution came from these assets in Q4 2012 as was the case in Q4 2011.

EBITDAS

EBITDAS for the fourth quarter of 2012 decreased by 34% compared to the fourth quarter of 2011, but increased 11% from the third quarter of 2011. Utilization of equipment across all segments was impacted negatively by the slowdown in customer spending in Q4 2012 noted above leading to lower year-over-year results. This decrease in activity levels were partially offset by equipment additions. Management continues to work towards keeping overhead costs as variable as possible to maintain stable EBITDAS and net income margins.

Net Income

Net income for the fourth quarter of 2012 was $1.7 million compared to $7.1 million in the fourth quarter of 2011. The decrease in net income was a result of lower utilization year-over-year, a gain on sale of the nitrogen assets in 2011 and provision for deferred income tax expense in 2012 compared to a deferred income tax recovery in the prior year.

Financial Measures Reconciliations

		THREE MONTHS ENDED				YEAR ENDED
		DECEMBER 31				DECEMBER 31
$ thousands		2012		2011		2012		2011
NON-IFRS MEASURES
1EBITDAS:
	Net income	1,729		7,115		4,783		12,690
Add:
	Depreciation	3,665		3,773		14,260		13,871
	Finance costs	755		990		2,948		3,514
	Income tax expense (recovery)	581		-		1,987		(1,072	)
	Stock based compensation	229		150		833		801
	Loss on sale of equipment	74		(1,398	)	216		(1,346	)
	Unrealized (gain) loss on marketable securities	17		-		22		23
EBITDAS		7,050		10,630		25,049		28,481
2Funds from (used in) operations:
	Cash flows from (used in) operating activities	3,731		5,805		32,715		21,116
Less:
	Change in non-cash working capital	(3,319	)	(4,825	)	(7,669	)	7,360
Funds from (used in) operations:		7,050		10,630		25,046		28,476
3Gross margin:
Revenue		29,396		35,987		112,332		109,502
Less:
	Direct operating expenses	(18,748	)	(21,663	)	(73,210	)	(67,669	)
Gross margin		10,648		14,324		39,122		41,833
		DECEMBER 31,		DECEMBER 31,
		2012		2011
4Working capital (excluding debt):
Current Assets		24,142		31,623
Less: Current Liabilities		(15,881	)	(17,586	)
Add: Current portion of long-term debt		2,422		8,377
Working capital (excluding debt)		10,683		22,414

Notes 1 to 4 - Please refer to the Notes to Financial Highlights at the end of this release.

About CWC Well Services Corp.

CWC Well Services Corp. is a premier well servicing company operating in the Western Canadian Sedimentary Basin with a complementary suite of oilfield services including service rigs, coil tubing, snubbing and well testing. The Company's corporate office is located in Calgary, Alberta, with operational locations in Red Deer, Provost, Lloydminster, Brooks, Slave Lake and Grande Prairie, Alberta and Weyburn, Saskatchewan.

Notes to Financial Highlights

1. EBITDAS (Earnings before interest, taxes, depreciation, amortization, gain/loss on disposal of asset, unrealized gain/loss on marketable securities, finance costs and stock based compensation) is not a recognized measure under IFRS. Management believes that in addition to net earnings, EBITDAS is a useful supplemental measure as it provides an indication of the Company's ability to generate cash flow in order to fund working capital, service debt, pay current income taxes, and fund capital programs. Investors should be cautioned, however, that EBITDAS should not be construed as an alternative to net income (loss) and comprehensive income (loss) determined in accordance with IFRS as an indicator of the Company's performance. CWC's method of calculating EBITDAS may differ from other entities and accordingly, EBITDAS may not be comparable to measures used by other entities. For a reconciliation of EBITDAS to net income (loss) and comprehensive income (loss).
2. Funds from (used in) operations and funds from (used in) operations per share are not recognized measures under IFRS. Management believes that in addition to cash flow from operations, funds from (used in) operations is a useful supplemental measure as it provides an indication of the cash flow generated by the Company's principal business activities prior to consideration of changes in working capital. Investors should be cautioned, however, that funds from (used in) operations should not be construed as an alternative to cash flow from (used in) operations determined in accordance with IFRS as an indicator of the Company's performance. CWC's method of calculating funds from (used in) operations may differ from other entities and accordingly, funds from (used in) operations may not be comparable to measures used by other entities. Funds from (used in) operations is equal to cash flow from (used in) operations before changes in non-cash working capital items related to operations.
3. Gross margin is calculated from the statement of comprehensive income (loss) as revenue less direct operating expenses and is used to assist management and investors in assessing the Company's financial results from operations excluding fixed overhead costs. Gross margin is a non-IFRS measure and does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures provided by other companies.
4. Working capital (excluding debt) is calculated based on current assets less current liabilities excluding the current portion of long-term debt. Working capital is used to assist management and investors in assessing the Company's liquidity and its' ability to generated funds. Working capital (excluding debt) does not have any meaning prescribed under IFRS and may not be comparable to similar measures provided by other companies.

READER ADVISORY

Certain statements contained in this press release, including statements which may contain such words as "could", "should", "believe", "expect", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking statements, including, but not limited to, statements as to: future capital expenditures, including the amount and nature thereof; revenue growth; equipment additions; business strategy; expansion and growth of the Company's business and operations; service rig utilization rates, outlook for oil and natural gas prices and general market conditions and other matters. Management has made certain assumptions and analyses which reflect their experiences and knowledge in the industry, including, without limitations, assumptions pertaining to well services demand as a result of commodity prices. These assumptions and analyses are believed to be accurate and truthful at the time, but the Company cannot assure readers that actual results will be consistent with these forward-looking statements. However, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the Company's expectations. All forward-looking statements made in the press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected outcomes to, or effects on, the Company or its business operations. The Company does not intend and does not assume any obligation to update these forward-looking statements, except as expressly required to do so pursuant to applicable securities laws. Any forward-looking statements made previously may be inaccurate now.

STATEMENT OF FINANCIAL POSITION
CWC Well Services Corp.
As at December 31, 2012 and 2011
in thousands of Canadian dollars			2012			2011
ASSETS
Current assets
	Marketable securities	$	22		$	43
	Accounts receivable		21,382			28,850
	Inventory		2,537			2,441
	Prepaid expenses and deposits		201			289
			24,142			31,623
Property and equipment			128,538			126,919
Loans to employees			-			160
Deferred tax asset			-			1,072
		$	152,680		$	159,774
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
	Bank indebtedness	$	3,163		$	1,810
	Accounts payable and accrued liabilities		7,779			7,399
	Dividends payable		2,517			-
	Current portion of long-term debt		2,422			8,377
			15,881			17,586
Deferred tax liability			915			-
Long-term debt			39,419			39,564
TOTAL LIABILITIES			56,215			57,150
SHAREHOLDERS' EQUITY
Share capital			108,001			109,143
Contributed surplus			5,762			5,236
Deficit			(17,298	)		(11,755	)
			96,465			102,624
		$	152,680		$	159,774

STATEMENT OF COMPREHENSIVE INCOME
CWC Well Services Corp.
For the years ended December 31, 2012 and 2011
in thousands of Canadian dollars			2012		2011
REVENUE			112,332	$	109,502
EXPENSES
	Direct operating expenses		73,210		67,669
	Selling and administrative expenses		14,073		13,352
	Stock based compensation		833		801
	Finance costs		2,948		3,514
	Depreciation		14,260		13,871
	Loss (Gain) on disposal of equipment		216		(1,346	)
	Unrealized loss on marketable securities		22		23
			105,562		97,884
NET INCOME BEFORE TAXES			6,770		11,618
DEFERRED INCOME TAX EXPENSE (RECOVERY)			1,987		(1,072	)
NET INCOME AND COMPREHENSIVE INCOME			4,783		12,690
EARNINGS PER SHARE
	Basic and diluted earnings per share	$	0.03	$	0.08

STATEMENT OF CHANGES IN EQUITY
CWC Well Services Corp.
For the years ended December 31, 2012 and 2011
in thousands of Canadian dollars		Shares (in 000's	)		Share Capital			Contributed surplus			Deficit			Total Equity
Balance at January 1, 2011		158,739		$	110,774		$	3,657		$	(24,445	)	$	89,986
Net income and comprehensive income for the year					-			-			12,690			12,690
Transactions with owners, recorded directly in equity
	Stock based compensation				-			801			-			801
	Shares issued	172			72			(29	)		-			43
	Shares redeemed	(2,467	)		(1,703	)		807			-			(896	)
Balance at December 31, 2011		156,444		$	109,143		$	5,236		$	(11,755	)	$	102,624
Balance at January 1, 2012		156,444		$	109,143		$	5,236		$	(11,755	)	$	102,624
Net income and comprehensive income for the year		-			-			-			4,783			4,783
Transactions with owners, recorded directly in equity
	Stock based compensation	-			-			750			-			750
	Shares issued	343			149			(63	)		-			86
	Shares redeemed	(1,871	)		(1,291	)		(161	)		-			(1,452	)
	Dividends declared	-			-			-			(10,326	)		(10,326	)
Balance at December 31, 2012		154,916		$	108,001		$	5,762		$	(17,298	)	$	96,465

STATEMENT OF CASH FLOWS
CWC Well Services Corp.
For the years ended December 31, 2012 and 2011
in thousands of Canadian dollars				2012			2011
CASH PROVIDED BY (USED IN):
OPERATING:
	Net income		$	4,783		$	12,690
	Adjustments for:
		Stock based compensation		833			801
		Interest on employee loans		(3	)		(5	)
		Finance costs		2,948			3,514
		Loss on disposal of equipment		216			(1,346	)
		Unrealized loss on marketable securities		22			23
		Deferred income tax expense		1,987			(1,072	)
		Depreciation		14,260			13,871
				25,046			28,476
	Change in non-cash working capital			7,669			(7,360	)
				32,715			21,116
INVESTING:
	Acquisitions			-			(38,000	)
	Purchase of equipment			(16,350	)		(4,436	)
	Proceeds on sale of equipment			474			7,044
				(15,876	)		(35,392	)
FINANCING:
	Issue of long-term debt			-			60,000
	Repayment of term debt			(8,250	)		(41,975	)
	Net increase of revolving debt			2,000			-
	Increase in bank indebtedness			1,353			431
	Finance costs paid			(143	)		(489	)
	Interest paid			(2,731	)		(3,114	)
	Finance lease repayments			(145	)		(143	)
	Common shares repurchased, net of proceeds on options			(1,367	)		(434	)
	Dividends paid			(7,556	)		-
				(16,839	)		14,276
CHANGE IN CASH				-			-
CASH, BEGINNING OF YEAR				-			-
CASH, END OF YEAR			$	-		$	-