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FES > SEC Filings for FES > Form 8-K on 26-Sep-2012All Recent SEC Filings

Show all filings for FORBES ENERGY SERVICES LTD. | Request a Trial to NEW EDGAR Online Pro

Form 8-K for FORBES ENERGY SERVICES LTD.


26-Sep-2012

Regulation FD Disclosure


Item 7.01 - Regulation FD Disclosure.

In anticipation of meetings with investors to be held on September 26, 2012, Forbes Energy Services Ltd., or the Company, is providing the selected information below.

• For the six months ended June 30, 2012, approximately 90% of our revenues were derived from West and South Texas combined, with a majority of those revenues coming from the Permian Basin and the Eagle Ford Shale Formation.

• We believe a majority of our services are related to oil vs. natural gas.

• Our 5-year average recordable incident rate is 83% less than the industry average for 2006 through 2010, which is the latest date for which comparable industry statistics are available.

• We estimate that capital expenditures for 2013 will be approximately $20 million.

• As of June 30, 2012, approximately 90% of our well servicing rigs are greater than 450 horsepower and are well-suited for horizontal shale plays. The average age of our rig fleet is 5.5 years. These rigs have a useful life of 25-30 years. The average cost of such a rig is approximately $1.5 million.

• The average cost of our vacuum trucks is approximately $0.2 million, with a useful life of 7-10 years.

• The estimated cost to buy or drill a disposal well is $2 million to $4 million.

• The estimated cost of a storage tank is $36,000, with a useful life of 15 years and an estimated daily rental rate of approximately $50 to $60 per day.

The information in this Form 8-K shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

This report 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 report 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 future decisions regarding capital expenditures. 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, 2011, as well as other filings.


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