Forbes Energy Announces Closing of Bought Deal Equity Financing


    



    
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<p>ALICE, Texas, <chron>Dec. 22</chron> /CNW/ -- Forbes Energy Services Ltd. ("Forbes" or the "Corporation") (TSX: FRB) is pleased to announce that it has completed its previously announced bought deal financing with Paradigm Capital Inc. for gross proceeds of <money>$17,250,000</money>, which includes <money>$2,250,000</money> from the Over-Allotment Option which was exercised in full. In total Forbes issued 21,562,500 common shares at an issue price of <money>$0.80</money> per common share.</p>
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<p>It is the Corporation's present intention to use the proceeds of the financing to repurchase a portion of its currently outstanding senior secured notes, for growth in <location>Mexico</location> and Pennsylvania and for working capital to take advantage of overall increased industry activity levels, such as in the Eagle Ford Shale in South Texas.</p>
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    About Forbes Energy
    
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<p>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 <location>Mexico</location>.</p>
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    Forward-Looking Information Advisory
    
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<p>This press release contains "forward-looking statements," as contemplated by the Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated use of financing proceeds, in which the Corporation discusses factors it believes may affect its performance in the future. The accuracy of the Corporation'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 Corporation gives no assurance that the forward-looking statements will prove to be correct and does not undertake any duty to update them. The Corporation's actual future results might differ from the forward-looking statements made in this press release for a variety of reasons, which include: 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 Corporation's ability to maintain pricing on its core services; the potential for excess capacity in the industry; and competition. Should one or more of the foregoing risks or uncertainties materialize, or should the Corporation's underlying assumptions prove incorrect, the Corporation's actual results may vary materially from those anticipated in its forward-looking statements, and the Corporation'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 Corporation's Annual Report on Form 10-K for the year ended <chron>December 31, 2008</chron> (the "Form 10- K") as well as other filings the Corporation has made with the Securities and Exchange Commission.</p>
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<p>These securities have not been and will not be registered under the <location>United States</location> Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the <location>United States</location> unless an exemption from registration is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the <location>United States</location>.</p>
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    Contacts: Forbes Energy Services Ltd.
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    L. Melvin Cooper, SVP & CFO
    361-664-0549






    

For further information: For further information: L. Melvin Cooper, SVP & CFO of Forbes Energy Services Ltd., +1-361-664-0549

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FORBES ENERGY SERVICES LTD.

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