Forbes Energy Services Announces Joint Venture to Provide Oilfield Services in Mexico

    ALICE, Texas, Oct. 1 /CNW/ -- Forbes Energy Services Ltd. (TSX: FRB)
announced today that a joint venture between the Company and Merco Ingenieria
Industrial S.A. de C.V. has executed a 24-month contract with PEMEX
Exploracion y Produccion, a subsidiary of Petroleos Mexicanos (PEMEX), to
provide construction, workover and maintenance services to existing wells in
Mexico.  Under the terms of the initial $72 million contract, Forbes Energy
agreed to provide four rigs, and granted PEMEX Exploracion y Produccion the
option for three more rigs.  Since execution of the contract, Forbes has
received notification from PEMEX requesting two additional rigs, which will
ultimately increase the total value of the contract.  Under the joint venture
agreement, Merco will provide construction services and Forbes Energy will
provide workover and maintenance services.  The Company's interest in the
joint venture is 50%.
    John Crisp, President and CEO, stated, "We are excited about our new
relationship with PEMEX and the opportunity to expand our business model south
of the U.S. border.  We are also proud to partner with Merco, who has a seven
year operating history working for PEMEX and other major oil & gas companies
in Mexico.  We at Forbes believe that with our new, modern equipment and
experienced employees, completion of this initial project will open the door
to additional opportunities to work with both of these companies in the
    Forbes Energy Services 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, and now Mexico.
    Forward Looking Statements
    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 include:
uncertainties affecting the operating proceeds of the contract with PEMEX
Exploration and Production; risks affecting the rigs and equipment that will
be operated in Mexico; fluctuations in foreign currency valuations compared to
the U.S. dollar and risks associated with foreign operations; supply and
demand for oilfield services and industry activity levels; variations in
global business and economic conditions; potential for excess capacity;
competition; and substantial capital requirements. 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
most recent quarterly report on Form 10-Q as well as other filings the Company
has made with the Securities and Exchange Commission, and on the 'Corporate'
page of Forbes Energy's website,

    Contacts:  Forbes Energy Services Ltd.
               L. Melvin Cooper, SVP & CFO

               Ken Dennard, Managing Partner
               Ben Burnham, AVP


For further information:

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&E, +1-713-529-6600, for Forbes Energy Services Ltd.
Web Site:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890