Capital expenditures for the three months and year ended December 31, 2012, were $57.4 million and $172.3 million, respectively, ahead of our projected spend of $155.0 million. The increased capital expenditure predominantly relates to equipment for the MFT contract, technical development, U.S. onsite projects and efficiency improvements in Western Facilities. Growth capital expenditures for the quarter and year primarily related to facility and service expansion at our Western Facilities and equipment for contract work in our Heavy Oil business unit.
To the end of January, the prices we receive for our recovered conventional and heavy oil have increased 19% and 22%, respectively, compared to December 2012. Drilling activity has improved 35% over Q4 2012. Base oil pricing has declined 9% from December 2012.
Returns from our 2012 capital and strengthening market demand are expected to drive improved results in the quarters ahead. In the first half of 2013, we anticipate ongoing strength across our three divisions while continued short-term fluctuations impact the prices received for our recovered products. Compared to Q1 2012, conventional and heavy oil prices for January are down 9% and 24%, respectively. Drilling activity in Q1 2013 is expected to be approximately 10% below Q1 2012. Base oil for January is 24% lower than Q1 2012. We anticipate normal operations at VSC and SCL in the quarter.
In 2013, we will operate under the following three new divisions:
-- New Markets will continue to focus on growing long-term contracts, strengthening our foundation of stable cash flow and maximizing cash flow from existing assets. We will continue to grow our contract revenue as a percentage of our total revenue. Our contract to process MFT will enter into its second year and we expect higher volumes to be processed in 2013 compared to 2012. Contributions from the MFT contract will predominately be realized in Q2 and Q3, with no contribution in Q1. We expect to continue to develop our U.S. platform, establishing two new U.S. operating locations to service key markets and meet market demand.-- Our Oilfield Division will drive organic growth by continuing to focus on productivity improvements, expanding our facility network through the addition of two new oilfield satellites, and adding new services. We will also leverage our onsite capabilities to expand our market presence within the conventional oilfield sector.-- Our Industrial Division will focus on growing organically through capacity expansions, expanding the facility network, productivity improvements, adding new services and growing our onsite business. In 2013, we will proceed with detailed engineering plans to double the capacity of our North Vancouver oil recycling process. We will also establish one new industrial operating location to improve service to key markets in 2013.
We have good visibility on our pipeline of organic growth capital projects, extending well into 2014. Our 2013 capital budget remains at $190 million, with growth capital and maintenance expenditures of $155 million and $35 million, respectively. We expect to spend approximately 40% of the capital budget in the first half of 2013. We may revise the capital budget, from time-to-time, in response to changes in market conditions that materially impact our financial performance and/or investment opportunities. The capital program will predominately be funded by cash flow from operations and the proceeds from the equity offering completed in the fourth quarter of 2012.