ALICE, Texas, Nov. 12, 2010 /PRNewswire via COMTEX/ -- Forbes Energy Services Ltd. (TSX: FRB) today announced its rig and trucking hours for the month of October 2010.
October 31, 2010 September 30, 2010 October 31, 2009 ---------------- ------------------ ---------------- Working days 21 20 22 Rig hours U.S. 29,971 27,867 17,004 Mexico 6,216 5,472 4,296 ----- ----- ----- Total rig hours 36,187 33,339 21,300 Truck hours 102,225 100,912 75,491 John Crisp, Forbes Energy's President and Chief Executive Officer, commented, "Our operating hours continue to improve. To put things in perspective, October represented the third highest rig hour total and the fourth highest truck hour total in Company history. Although we are not back to 2008 activity and margin levels, our primary areas of activity certainly continue to trend in the right direction. And we believe that there will be continued opportunities for growth.
At a recent analyst day, Halliburton projected that the Eagle Ford Shale rig count would increase to over 200 by the end of 2011, from just over 100 currently. We're also seeing increased activity in the Permian Basin, where oil prices are supporting recompletion work on traditional oil plays as well as new drilling and completion work in unconventional oil plays. We anticipate that our improving operating activities in South and West Texas will offset the slowdown in our dry gas market areas such as East Texas.
"Several weeks of down-time are included in the Mexico hours above for the months of September and October. This down-time was an industry event in Mexico related to Pemex scheduling. The above hours include this time as there will be associated revenue received from Pemex that is intended to recapture a portion of our cost incurred while the rigs were idled by Pemex." 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.
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: 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.
Contacts: Forbes Energy Services Ltd.
--------------------------- L. Melvin Cooper, SVP & CFO 361-664-0549 DRG&L ----- Ken Dennard, Managing Partner Ben Burnham, AVP 713-529-6600 SOURCE Forbes Energy Services Ltd.
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