Forbes Energy Services to Sell Mexico Assets
Forbes Energy Services Ltd. announced today it and certain of the company’s subsidiaries have 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 México 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.
John Crisp, president and CEO of Forbes Energy Services Ltd., said, “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 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."