12/05/2012 05:27 EST | Updated 02/04/2013 05:12 EST

Cathedral Energy Services sets capital budget at $22 million for 2013

CALGARY - Cathedral Energy Services Ltd. (TSX:CET) said Wednesday it has set its capital budget at $22 million for next year including $10 million for growth projects and $12 million for maintenance capital expenditures.

The oilfield services company said its directional drilling division is expected to spend $7 million of growth capital expenditures including an expansion of its Houston and Oklahoma City bases.

Maintenance spending for the division is expected to amount to $12 million.

The production and testing division expects to spend $3 million of growth projects.

Cathedral said the money will come from cash flow from operations and, if necessary, its existing credit facility.

Shares in the company, which announced its capital spending plan after the close of markets, were down three cents at $5.16 on the Toronto Stock Exchange on Wednesday.