United Oil & Gas PLC (AIM:UOG) shares plummeted in Tuesday’s early deals after warning over its cash position as it continues to wait on payments from Egypt.
The company, in a statement, told investors it is now cutting all costs to the ‘bare minimum’.
It comes as payments from Egypt, previously described as ‘imminent’, have yet to materialise.
The company said on Tuesday that talks are ongoing with the authorities and "the company is taking all necessary steps to secure prompt resolution".
At the same time, United said its farm-out negotiations over its asset in Jamaica have now been suspended until the new year.
"We are continuing to engage with EGPC to secure our receivables due. In parallel, the company has had to make some decisions to maximise our cash resources,” chief executive Brian Larkin said in a statement.
“With this in mind, we plan to significantly reduce the company's cost base to absolute essential outgoings only, in order to maximise the chances of securing a potential farm-out agreement within the constraints of our limited funds and timeframe."
United Oil & Gas shares were down 29% changing hands at 0.13p, valuing the company at just over £1 million.