Forbes Energy Services Sells Mexican Assets, Will Focus On U.S.

To acquire substantially all Forbes Energy's Mexico well-servicing operations, gaining well maintenance, well workovers, recompletions & reperforations, completion & swabbing activities & plugging & abandoning services.

In an effort to enhance its infrastructure in U.S. shale plays, Forbes Energy Services Ltd., Alice, Texas, (Nasdaq: FES) and certain of its subsidiaries plans to sell substantially all of Forbes Energy’s assets currently in Mexico plus the company’s equity interests in Forbes Energy Services México Servicios de Personal to Austin, Texas-based Dirivera Investments LLC and New York-based RGV Holding for an aggregate cash consideration of $30 million.

Forbes Energy Services México provides well-servicing operations in Mexico exclusively for Pemex, the Mexican national oil company. These services include well maintenance, well workovers, including significant downhole repairs, recompletions and reperforations, completion and swabbing activities and plugging and abandoning services.

Revenues from the company’s Mexican activities were $45.9 million for the nine months ended Sept. 30, 2011.

Forbes president and chief executive John Crisp says, “U.S. oil and gas development and production have become increasingly more intense and more sophisticated over the past two years. We see an opportunity to fully capitalize on these trends and, consequently, intend to reinvest proceeds from the sale to enhance our infrastructure in U.S. shale plays and diversify our service offering, including the addition of large-diameter, long-reach, coiled-tubing units."

The deal is expected to be completed by Jan. 15, 2012.