Flint Energy Services Ltd. announces settlement of Quebec taxes

(TSX: FES.TO)

CALGARY, May 20 /CNW/ - Flint Energy Services Ltd. ("Flint" or "Company") announced today that during the first quarter, Flint reached a tentative agreement with the taxation authorities in Quebec and the other provinces, as well as the CRA on settlement of the Quebec National Assembly Bill 15, which retroactively taxed income in Quebec impacting the Company from 2002 to 2005. As at March 31, 2008, the Company had recorded expenses of $21.5 million related to this matter.

Flint has now executed the definitive settlement agreement with the relevant taxing authorities in the amount of $12.2 million. The Company will record a recovery in the amount of approximately $9.3 million or $0.19 per fully diluted share during the second quarter of the year.

Flint is a market leader providing an expanding range of integrated products and services for the oil and gas industry including: production services, facility infrastructure, oilfield transportation, tubular management services, process equipment design and manufacturing, and plant maintenance. Flint provides this unique breadth of products and services through over 62 strategic locations in the oil and gas producing areas of western North America, from Inuvik in the Northwest Territories to Mission, Texas on the Mexican border. Flint is a preferred provider of infrastructure construction management, module fabrication, and maintenance services for upgrading and production facilities in Alberta's fast growing oil sands sector. Flint Energy Services Ltd. is a publicly traded company listed on the Toronto Stock Exchange under the symbol "FES".

FORWARD LOOKING STATEMENTS

Certain statements in this news release are "forward-looking statements", which reflect current expectations of the management of Flint regarding future events or Flint's future performance. All statements other than statements of historical fact contained in this news release may be forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements. Flint believes that the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and Flint assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities law. Further information regarding risks and uncertainties relating to Flint and its securities can be found in the disclosure documents filed by Flint with the securities regulatory authorities, available at www.sedar.com.

Contacts

W.J. (Bill) Lingard
President & Chief Executive Officer

Paul M. Boechler
Chief Financial Officer

or Guy Cocquyt
Director of Investor Relations
Telephone: (403) 218-7100
Fax: (403) 215-5481
Website: www.flintenergy.com