(Sharecast News) - Oil, gas and oilfield services company Star Phoenix updated the market on its oilfield services operations on Friday, reporting that it had further cut the ongoing costs of its RRDSL division in light of the Covid-19 pandemic.
The AIM-traded firm said that as part of the cost reduction programme, it completed a "comprehensive" restructuring of RRDSL, along with other cost cutting measures.
It said it expected that, during the current financial year, there would be a targeted 85% reduction in the annual operating costs compared with the prior financial year.
The company said it also signed an agreement with a third-party operator to dry lease some of the equipment, including mud tanks and a generator, to derive additional revenue.
In addition, agreements were signed to sell four smaller production rigs for a total of $0.2m.
"The company continues to evaluate sale opportunities of the remaining eight rigs including four modern drilling rigs and will provide an update upon any material developments," the board said in its statement.
At 1042 BST, shares in Star Phoenix Group were down 10.56% at 1.61p.
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