Forbes Energy Services Announces Closing of Private Placement of Convertible
Preferred Shares

    


    
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<p>ALICE, Texas, <span class="xn-chron">June 1</span> /CNW/ -- Forbes Energy Services Ltd. ("Forbes" or the "Corporation") (TSX: FRB) is pleased to announce that on <span class="xn-chron">May 28, 2010</span> it completed its previously announced private placement of 580,800 Series B Senior Convertible Preferred Shares (the "Series B Preferred Shares") of the Corporation to certain private investment funds at a price of <span class="xn-money">$25.00</span> per Series B Preferred Share for total gross proceeds to the Corporation of <span class="xn-money">$14,520,000</span>.</p>
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<p>The Corporation intends to use the net proceeds from the private placement to make certain required repurchases of 11% senior secured notes issued by certain subsidiaries of the Corporation and for general corporate purposes, including, without limitation, debt service payments.</p>
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<p>The terms, rights and preferences of the Series B Preferred Shares, including conversion rights, are described in the Company's Current Report on Form 8-K filed on <span class="xn-chron">May 28, 2010</span>.</p>
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    Forward-Looking Information Advisory

    
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<p>This report contains "forward-looking statements," as contemplated by the Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated use of financing proceeds. The Corporation gives no assurance that the forward-looking statements will prove to be correct and does not undertake any duty to update them. The use of financing proceeds is dependent on a variety of factors, including the operating performance of the Corporation and its subsidiaries.  Additional factors that you should consider are set forth in detail in the Risk Factors section of the Corporation's previously filed Annual Report on Form 10-K for the year ended <span class="xn-chron">December 31, 2009</span> as well as other filings the Corporation has made with the Securities and Exchange Commission.</p>
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    About Forbes Energy
    
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<p>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 <span class="xn-location">Mexico</span>.</p>
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<p>The issuance of these securities has not been and will not be registered under the <span class="xn-location">United States</span> Securities Act of 1933, as amended, or the securities laws of any state, and such securities may not be offered or sold in the <span class="xn-location">United States</span> unless an exemption from registration is available.  This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the <span class="xn-location">United States</span>.</p>
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    Contacts: Forbes Energy Services Ltd.
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    L. Melvin Cooper, SVP & CFO
    361-664-0549





    

For further information: L. Melvin Cooper, SVP & CFO of Forbes Energy Services Ltd., [phone]