Thu, May 17, 2012 14:54
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Forbes Energy Services to Sell Mexico Business For $30 Million

Texas Business reports: ALICE—Forbes Energy Services Ltd.  and certain of the company's subsidiaries entered into a purchase agreement with Dirivera Investments LLC and RGV Holding S.A. de C.V. covering the sale of substantially all of Forbes Energy's assets currently located in Mexico as well as the company's equity interests in Forbes Energy Services Mexico Servicios de Personal, S. de R.L. de C.V. for aggregate cash consideration of $30 million.

The transaction is expected to be completed by January 15, 2012, subject to customary closing conditions.

“U.S. oil and gas development and production have become increasingly more intense and more sophisticated over the past two years,” said Forbes Energy Services chief executive John Crisp. “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 coil tubing units. These units will provide our customers with an alternative solution to their well servicing challenges as well as serve as a platform for margin expansion.”

Forbes Energy Services is an independent oilfield services company that provides a broad range of drilling-related and production-related services to oil and natural gas companies to help develop and enhance the production of oil and natural gas.