MEO Cuts Costs, Rejects Mosman Oil and Gas' Revised Takeover Proposal
MEO Australia Limited disclosed Thursday that it has implemented a range of cost cutting measures. Corporate overheads will be reduced by more than 60 percent compared to the 2014 financial year and be in the range of $1.94 million (AUD 2.5 million) per annum from March 2015.
These reductions are being achieved in part by more flexible employment arrangements to ensure MEO retains access to the core skills and experience necessary to manage its existing business as well as growth opportunities.
MEO’s CEO Peter Stickland, commented on the announcement:
“MEO is determined to both survive and thrive, despite the dramatic deterioration in the business environment over the past 6 months. These cost cutting measures announced today, along with its cash balance of nearly $7.78 million (AUD 10 million) will mean that MEO is in a stronger position to both survive the current downturn and also take advantage of value creation opportunities.
In light of MEO’s current circumstances, my intention is to bring a strong sense of fiscal discipline to the management of the company, to ensure its funds are applied as efficiently as possible in the pursuit of growing value for shareholders.”
In a separate announcement, MEO Chairman Greg Short wrote the following letter to the company's shareholders Thursday.
"For some time your board has been considering strategic options for the company, with the objective of growing value for MEO shareholders by building a well-capitalized junior exploration and production company able to pursue MEO’s existing as well as new opportunities.
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