Atlantic margin-focused energy firm Chariot Oil & Gas Limited will reduce its personnel and payroll as part of its ongoing focus on capital discipline in light of the “continuously challenging business environment”, according to a company statement.
Due to the restructuring of the company, the size and cost of the board will reduce, with Technical Executive Director Matthew Taylor, Non-Executive Director David Bodecott and Non-Executive Director Bill Trojan stepping down. Payroll in the head office will be cut by approximately one third.
These changes, along with other general and administrative initiatives, are expected to realize net cash savings of approximately $1.5 million per year. Chariot continues to be fully funded for all of its current work commitments. The decision to reduce its costs was taken “as a precautionary measure,” according to a company statement.
“This board decision to reduce the overall cost base of the company is directly linked to our continued focus on capital discipline while ensuring that we maintain the capacity to execute the business plan,” said Chariot Oil & Gas Chairman George Canjar in a company release.
“The company has been able to position itself within the current environment through focusing on protecting cash, protecting the portfolio, partnering and capitalizing on market conditions. These reductions create greater financial flexibility in this lower for longer oil price environment,” added Chariot’s CEO Larry Bottomley.
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