(Alliance News) - Advance Energy PLC shares leapt on Friday following the announcement of board changes, cost reductions and a refocused strategy moving forward.
Shares in Advance Energy were up 36% at 0.32 pence on Friday morning in London.
The Isle of Man, UK-based oil and gas company said it has implemented measures to reduce the costs by over 50% through a number of initiatives, including reducing salaries and director fees by over 60%.
To support these initiatives, Chief Executive Leslie Peterkin has decided to resign with immediate effect and he will be replaced on an interim basis by Non-Executive Director Larry Bottomley.
Advance Energy said it has refined its strategy to create a self-funding oil and gas production company.
By concentrating on non-operated cash-generative assets and capitalising on its current deal pipeline, Advance Energy said it hopes to leverage the time and cost expended in assessing potential new ventures over the last year.
Following completion of the Buffalo-10 well in Timor-Leste in Southeast Asia, the settlement of associated costs, and supported by the initiatives to reduce the cost base, Advance Energy said it believes it has sufficient liquidity to progress new business development through the current year.
It is also confident that it will enter into an agreement on at least one opportunity in its pipeline this year.
By Heather Rydings; heatherrydings@alliancenews.com
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