Cost Cutting Initiative Completed

RNS Number : 8018A

Nostra Terra Oil & Gas Company PLC

10 June 2016

 

10 June 2016

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

40% Reduction in Overheads Achieved

Further to the announcement of 1 June 2016, Nostra Terra (AIM:NTOG) is pleased to announce the results of its cost-cutting initiative in response to current conditions in the market for oil & gas. In summary, the Board has identified savings in the following areas:

·    40% year on year total reduction in combined running costs including;

o 49% reduction in operational overheads

o 10% reduction in Plc costs

·    25% reduction in current board and management salaries

The Board began its cost cutting initiative in mid-2015, in response to the prolonged low oil price environment. The Board took the prudent step to begin restructuring the business in anticipation of further pressure on the price of oil over the course of 2016. So far this decision has been vindicated and Nostra Terra now benefits from its reduced overheads at a time when the industry continues to suffer.

A core component of the cost-cutting initiative has been for the Board to take a voluntary 25% pay cut. In light of ongoing weakness in the oil & gas market, which has caused significant declines in company share prices across the sector, the Board felt that this was an appropriate step to take.

With Nostra Terra now better positioned to withstand current market conditions, the Board remains fully committed to securing new assets for the Company, which stand to deliver significant shareholder value over the medium term.

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:

"We're pleased to have achieved a significant cut in costs during such a severe downturn in the commodity cycle.  We'll strive to keep cost low while our focus remains on increasing production and revenues."

For further information, visit www.ntog.co.uk or contact:

Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO		[phone]
Strand Hanson Limited (Nominated & Financial Adviser and Joint Broker)			[phone]
Rory Murphy / Ritchie Balmer
Cornhill Capital Ltd (Joint Broker)			[phone]
Nick Bealer / Colin Rowbury
Walbrook PR (Financial PR)			[phone]
Gary Middleton / Nick Rome

 

END

 

 

MSCAKCDQKBKBKAK