RIG HOURS UP 35% YEAR-OVER-YEAR
TRUCK HOURS UP 23% YEAR-OVER-YEAR
ALICE, Texas, Feb. 10, 2011 /CNW/ -- Forbes Energy Services Ltd. (TSX: FRB) today announced its rig and trucking hours for the month of January 2011.
For the month ending
January 31, December 31, January 31,
2011 2010 2010
------------ ------------- ------------
Working days 21 20 20
U.S. 29,633 26,958 19,962
Mexico 5,856 5,760 6,360
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hours 35,489 32,718 26,322
Truck hours 102,907 100,049 83,625
John Crisp, Forbes Energy Services' President and Chief Executive Officer, commented, "January activity levels increased in line with industry trends, particularly in South Texas where indications from our customers are supportive of strong growth throughout 2011. In response to this increased demand, which has our fluid service division operating at near capacity, we will be adding additional equipment such as fluid service trucks and frac tanks over the next few months. We anticipate that this equipment will be immediately utilized by existing customers.
"Our Mexico rigs are also near full utilization for the month. We believe we have come to agreement with Pemex on the basic terms of our contract extension and anticipate finalizing the documentation soon."
U.S. rigs generally work all weekdays except holidays. Mexico rigs generally work every day except holidays. Trucks generally operate every day except Sundays and holidays. Rig and truck hours represent actual hours billed to customers.
Forbes Energy Services cautions that several factors other than those discussed above may impact the Company's operating results and that a particular trend regarding the factors above may or may not be indicative of the Company's current or future financial performance.
Forbes Energy Services Ltd. is an independent oilfield services contractor that provides a broad range of drilling-related and production-related services to oil and natural gas companies, primarily onshore in Texas, Mississippi, Pennsylvania and Mexico.
This press release contains "forward-looking statements," as contemplated by the Private Securities Litigation Reform Act of 1995, in which the Company discusses factors it believes may affect its performance in the future. The accuracy of the Company's assumptions, expectations, beliefs and projections depend on events or conditions that change over time and are thus susceptible to change based on actual experience, new developments and known and unknown risks. The Company gives no assurance that the forward-looking statements will prove to be correct and does not undertake any duty to update them. The Company's actual future results might differ from the forward-looking statements made in this press release for a variety of reasons, which could include: the failure of the Company to finalize an extension of its contract with PEMEX, risks associated with the performance of services for PEMEX outside of the scope of a contract; supply and demand for oilfield services and the level of oil and natural gas prices; the continued uncertainty in the global financial markets and its effect on domestic spending in the oil and natural gas industry; the Company's ability to maintain or improve pricing on its core services; the potential for excess capacity in the industry; competition and the ability to obtain additional cash resources through a financing or other permitted transaction. Should one or more of the foregoing risks or uncertainties materialize, or should the Company's underlying assumptions prove incorrect, the Company's actual results may vary materially from those anticipated in its forward-looking statements, and the Company's business, financial condition and results of operations could be materially and adversely affected. Additional factors that you should consider are set forth in detail in the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2009, as such section is amended by the Current Reports on Form 8-K filed on November 26, 2010 and January 25, 2011, as well as in other filings the Company has made with the Securities and Exchange Commission.
Contacts: Forbes Energy Services Ltd.
L. Melvin Cooper, SVP & CFO
Ken Dennard, Managing Partner
Ben Burnham, AVP
SOURCE Forbes Energy Services Ltd.
For further information: L. Melvin Cooper, SVP & CFO of Forbes Energy Services Ltd., +1-361-664-0549; or Ken Dennard, Managing Partner, or Ben Burnham, AVP, both of DRG&L, +1-713-529-6600, for Forbes Energy Services Ltd.