LGO to Continue Cost Reduction Program
LGO Energy announced Wednesday that it will be continuing its cost reduction program to further reduce its corporate overheads in 2017.
The company implemented reductions of discretional spending and headcount during the last year, as well as the deferral of director's fees, which resulted in a marked decrease in the general and administration (G&A) costs of the company.
"After a difficult period with low oil prices and a senior debt facility that was difficult to service effectively from field operations, which themselves were constrained by limited available funds, we can now look forward to the imminent return to development drilling and the deployment of capital to increase production at the company's flagship Goudron field,” LGO Chief Executive Neil Ritson said.
“During the recovery period some very difficult decisions had to be made on the deployment of funds and shareholder equity and we appreciate the commitment and support of our shareholders during this process."
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