Columbus Energy Resources PLC (LON:CERP) has revealed details of a number of cost-cutting measures aimed at cash and capital preservation amid the coronavirus (COVID-19) crisis.
In a statement, Columbus said its executive management won’t receive cash salaries for at least three months, while employee salaries will be reduced by 40% for at least three months, headcount will be reduced by 15% and the company will cease non-essential capital spending.
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"Given the downturn in the oil markets and the global markets, in part caused by COVID-19, we have taken aggressive measures to cut costs and protect our cash position,” said Tony Hawkins, Columbus chief executive.
“I am mindful that these cost reduction measures will have a real cost for our employees and we will work hard to minimise this where possible. I would like to thank our employees who have shown flexibility and pragmatism at this very difficult time.”
Columbus had US$2.56mln of cash at the end of March, of which US$780,000 is restricted.
Operationally, attention is on the recently drilled Saffron well which is being tested, with results expected later this month, on 27 April.