* Sees Q2 loss $4.5 mln vs $9.0 mln year ago
* Says activity increased across all markets
July 20 (Reuters) - Oilfield services contractor Forbes Energy Services Ltd FRB.TOsaid it expects to post a narrower second-quarter loss, helped by price increases and strength across all of its markets, especially in southern Texas.
The company said it implemented gradual price increases beginning in the first quarter, which has helped it to establish more normalized gross margins.
Net loss for the three months ended June 30 is expected to be $4.5 million, compared with net loss of $9.0 million a year ago.
The company also reported gross revenue for May of $27 million, a 13 percent increase from April. The company expects June revenue to be in line with May levels, it said.
Last week, Forbes Energy had said its two workover rigs in Pennsylvania, idled after a well blowout last month, may return to full service as it settled with the Pennsylvania Department of Environmental Protection. [ID:nSGE66C0E7]
Shares of the company closed at 50 Canadian cents Friday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Anne Pallivathuckal)