West Perth-based oil and gas junior New Standard Energy has announced further cuts to its workforce in response to the falling oil price environment, with just four employees remaining across Australia and the US.
The company’s managing director, Phil Thick, has reduced his salary by 50 per cent and director Chris Sadler has resigned.
At the same time, New Standard’s remaining directors will not earn any fees until market conditions improve.
The company slashed its workforce by 60 per cent last year, in response to the tumbling price of crude oil, while it is also looking to reduce costs by pushing back operational activity at its Eagle Ford oil wells in the United States.
New Standard drilled two new wells late last year at its Eagle Ford acreage, but will not go ahead with hydraulic fracturing or completion of the wells until another three months.
The company is also looking for new partnerships, joint ventures, farm-in agreements and asset sales or swaps to bolster its cash position, but as yet has been unable to finalise a binding deal.
"New Standard expects that these negotiations will reach conclusion within the next two weeks at which point an update can be provided to shareholders," the company said in a statement to the ASX.
Discussions with debt provider Credit Suisse are also ongoing, with the international financier indicating preliminary support for interim funding options.
"The speed and intensity of the collapse in global oil prices has affected companies large and small and across all jurisdictions," Mr Thick said.
"We have to continue to be responsive to these market forces."
