UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT: March 31, 2010

(Date of earliest event reported)

Forbes Energy Services Ltd.

(Exact Name of Registrant as Specified in Its Charter)

(361) 664-0549

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Item 2.02 – Results of Operations and Financial Condition

The information in this Item 2.02 of this Current Report is being furnished pursuant to Item 2.02 of Form 8-K and, according to general instruction B.2. thereunder, the information in this Item 2.02 of this Current Report and Exhibit 99.1 to this Form 8-K shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933.

On March 31, 2010, Forbes Energy Services Ltd., a company formed under the laws of Bermuda (the “Company”), issued a press release to announce the results of its operations for the three months ended December 31, 2009. Additional information is included in the Company’s press release dated March 31, 2010, which is attached hereto as Exhibit 99.1.

The press release contains reference to the non-GAAP (as defined below) financial measure Adjusted EBITDA. Adjusted EBITDA is defined as net income before interest, taxes, impairment charges, stock based compensation, gain (loss) on extinguishment of debt, depreciation, and amortization. Management does not include impairment charges or gain (loss) on extinguishment of debt in its calculations of Adjusted EBITDA, as it believes that they are not representative of our core operations. Further, management believes that most investors exclude impairment charges, gain (loss) on extinguishment of debt, and stock based compensation recorded under FIN123R from customary EBITDA calculations as those items are often viewed as either non-recurring and not reflective of ongoing financial performance or having no cash impact on operations.

Adjusted EBITDA, as the Company defines it, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with United States generally accepted accounting principles, or GAAP. Adjusted EBITDA should not be considered in isolation or as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA excludes some, but not all, items that affect net income and operating income and these measures may vary among other companies.

The Company believes that Adjusted EBITDA is useful to investors, directors and management as a supplement financial measure to assess:

The Company’s management uses Adjusted EBITDA for the reasons stated above. In addition, the Company’s management uses Adjusted EBITDA (i) in presentations to the Board of Directors to enable them to have the same consistent measurement basis of operating performance used by management, (ii) as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations, and (iii) in communications with shareholders, lenders, noteholders, rating agencies, and others concerning the Company’s financial performance.

Set forth below are the material limitations associated with using Adjusted EBITDA as an analytical tool:

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Management compensates for the above-described limitations in using Adjusted EBITDA as a non-GAAP financial measure by only using Adjusted EBITDA to supplement GAAP results. A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure, is contained in the press release filed as Exhibit 99.1 to this Form 8-K.

Item 9.01 – Financial Statements and Exhibits

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.