Flint announces restructuring of operations

    (TSX: FES)

    CALGARY, Jan. 7 /CNW/ - Flint Energy Services Ltd. (Flint, the Company)
announced today that, as a part of a continuing process to streamline
operations, it has consolidated operations and reporting into four business
segments. The new segments are: Production Services, Facility Infrastructure,
Oilfield Services, and Maintenance Services.
    The Fluid Haul Services business unit, previously included in Production
Services, was merged with Flint's Oilfield Transportation segment to create a
new segment called Flint Oilfield Services. The merging of these two
businesses combines fleets of approximately 300 and 500 units respectively,
providing upstream services to oilfield drilling, and midstream services to
production operations. The service offerings include: drill rig and service
rig moving; module, equipment and specialty hauling; fluid handling, pressure
and vacuum services, industrial and chemical cleaning; and coiled tubing and
flush-by services.
    The Tubular Management & Manufacturing segment was consolidated with the
Production Services segment. This combined group continues to be called
Production Services and remains focused on midstream oil and gas production
services. These services encompass: fabrication, construction and maintenance
of production facilities; construction of gathering lines, small diameter and
mid-inch pipelines; manufacturing of production equipment; mid-sized
construction project management; the inspection, repair, and refurbishment of
production casing and tubing, drill pipe and sucker rods; and manufacturing of
polyethylene pipe and liners. This new segment will create synergies between
management, skilled labour, fabrication shops, and pipe yards throughout North
    Flint's existing Facility Infrastructure segment, which includes its oil
sands construction activities, remains unchanged with Flint's focus continuing
to provide construction management, modular fabrication and field construction
services on major construction projects primarily in Edmonton and Fort
McMurray, Alberta.
    The Plant Maintenance and Other segment will be renamed Maintenance
Services and will include Flint's 50 percent owned FT Services, as well as
Flint's northern aboriginal partnerships which include Mackenzie Valley
Construction and SRP Ventures.
    Bill Lingard, President and CEO of Flint said, "This consolidation of our
operations facilitates the closing of some smaller, underperforming locations,
and the eventual sale of approximately half a dozen properties. It will also
result in a reduction of approximately forty redundant positions in
management, administration, supply chain, and support services."
    The reorganization ensures a more balanced weighting of conventional oil
and gas drilling and production, and heavy oil and oil sands related work
across Flint's divisions. The streamlining of operations will contribute to a
greater focus on working capital reduction, margin improvement and
standardization of accounting and controls across the divisions. In addition
to the organizational restructuring, Flint is further managing its costs by
suspending the 2009 annual pay increases for executives, management and
salaried employees.
    Mr. Lingard stated, "The realignment and consolidation allows us to
capitalize on our team of talented executives and managers to capture new
synergies between our operating divisions. We believe we can create more
opportunities for our valuable front line employees, and create efficiencies
that will help reduce the overall costs to our clients in this time of
challenging market conditions."

    Flint Energy Services Ltd. is a market leader providing an expanding
range of integrated products and services for the oil and gas industry
including: production services; field construction; oilfield transportation;
process equipment design and manufacturing; and tubular management services.
Flint provides this unique breadth of products and services through over 63
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.


    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.

For further information:

For further information: Guy Cocquyt, Director of Investor Relations,
Flint Energy Services Ltd., Telephone: (403) 218-7195,
gcocquyt@flintenergy.com, Website: www.flintenergy.com

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