Junior Norwegian energy company North Energy announced Thursday that its cost-cutting restructuring plan is “on schedule”, following a net loss of $3.78 million in the third quarter of 2015.
Commenting on the state of the cost-cutting measures, Knut Sæberg, CEO of North Energy, said in a company statement:
"The restructuring plan is on schedule. Our cost base has been cut dramatically, and we will have very low operating expenses in the time to come. We're continuing our efforts to adapt to the demanding market conditions. The threshold for investment commitments will be high, and our future exploration wells must satisfy stringent requirements for swift commercialization. Taken together, these measures mean that our financial position is good.”
North Energy’s exploration and license costs in 3Q 2015 amounted to roughly $2.97 million after tax. During the quarter, the company participated in the Tvillingen South well in the Norwegian Sea, which encountered an uncommercial gas find, and the Haribo well, which failed to prove hydrocarbons. The company held interests in a total of 21 licenses on the Norwegian continental shelf as at Nov 1. Drill or drop decisions are due to be taken over the next 12 months for 16 of these assets.
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