Rockhopper Cuts Staff and Pay
Rockhopper Exploration plc has announced several measures to reduce its cost base following a board review of expenditure.
Cost reductions that aim to reduce corporate overheads by approximately 30 percent compared to 2019 levels have been initiated, the company outlined. Rockhopper Exploration revealed that these measures include:
- A permanent reduction to executive director base remuneration
- The reduction of employee headcount, including certain roles transitioning to part-time
- Reductions to adviser and contractor costs
- Decreased head office costs through relocation outside of London
“It is very important that Rockhopper maintains its balance sheet strength against the current volatile and challenging macro backdrop,” Keith Lough, Rockhopper Exploration chairman, said in a company statement.
“The measures we have implemented aim both to lower our costs but also retain and incentivize our staff at what is a very important time for the company as we look to finalize the farm out of Sea Lion to Navitas, further progress the financing of the project and hope to conclude the Ombrina Mare arbitration successfully,” the Rockhopper Exploration head added.
“The savings arising should result in a circa 30 percent reduction to 2019 G&A [general and administrative] levels, which in themselves reflect a circa 50 percent reduction compared to 2014/15 levels. These are material and permanent reductions and demonstrate our commitment to a strong balance sheet and leaner organization,” Lough continued.
Rockhopper Exploration is an AIM listed oil and gas company based in the UK with interests in the Falkland Islands and the Greater Mediterranean region.
The company’s strategy is to build a well-funded, full-cycle, exploration led exploration and production company, according to its website, which outlines that the business is the leading acreage holder in the North Falkland Basin with independently audited 2C oil resources in excess of 250 million barrels.
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