SINGAPORE - Oil and gas explorer and producer Linc Energy gave shareholders on Tuesday an update on the initiatives the mainboard-listed company has undertaken in response to lower oil prices.
The company also said it also wanted to address a number of questions that have been received from shareholders.
Its initiatives in the past six months include:
- Increased focus on divestment of non-core assets and other corporate initiatives, such as debt restructuring and significant cuts in planned capital expenditure.
- Optimising the organisation's structure and reporting lines, resulting in savings of approximately A$24.7 million in financial year 2015, through a 38 per cent cut in employee numbers and a 7 per cent reduction in contractor numbers.
- A review of all global assets and facilities to develop divestment/exit strategies for all noncore business related expenses in order to reduce maintenance costs, which has resulted in year-on-year savings of 37 per cent in FY2015.
- Continued operational efficiencies in the conventional oil and gas division resulting in savings of 22 per cent in Lease Operating Expenses per barrel costs for the third quarter for the Gulf Coast operations; and keeping current total cost per barrel of oil produced within its USA operations below US$29/barrel.
Its ongoing initiatives include:
- Review of its hedging programme, including additional hedging options.
- Ongoing reduction in operating and G&A costs and a more efficient allocation of capital.
- Maintaining economic production in the Company's Gulf Coast oil and gas assets through less capital intensive recompletions rather than drilling new wells.
- Strengthening the balance sheet through the completion of a Receivable Factoring Facility Agreement.