ALICE, Texas, June 14 /PRNewswire-FirstCall/ -- Forbes Energy Services Ltd. (TSX: FRB) today announced its rig and trucking hours for the month of May 2010.
For the month ending
May 31, 2010
April 30, 2010
May 31, 2009
Total rig hours
John Crisp, Forbes Energy's President and Chief Executive Officer, commented, "Our operational outlook continues to improve. In May, we generated our highest rig hours total since October 2008. After taking into account the Memorial holiday, rig hours per day were up 8% in the US compared to April, and truck hours increased 4% as compared to April. In addition to positive utilization trends, pricing continues to strengthen in response to increasing industry activity.
Our Mexico rigs continue to work at near full utilization as we continue our efforts streamline operations and maximize utilization. We are also pleased that three additional rigs have commenced operations in Mississippi with new customers.
In addition to the positive operating trends, we also improved our balance sheet with completion of the recently announced preferred stock offering."
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 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 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 (the "Form 10-K") as well as other filings the Company has made with the Securities and Exchange Commission.
Forbes Energy Services Ltd.
L. Melvin Cooper, SVP & CFO
Ken Dennard, Managing Partner
Ben Burnham, AVP
SOURCE Forbes Energy Services Ltd.