Central moves to cut staff, costs
Central Petroleum has moved to slash staff, salaries, operating costs and expenditure in response to the plunging oil price.
The NT-focused onshore oil and gas explorer said the recent fall in oil prices had affected revenue from its Surprise field, which had forced it to apply for permits to run the project remotely from Alice Springs in a bid to cut costs.
Central also said it had implemented a 40 per cent reduction of its workforce, primarily targeting consultants and contractors.
"The company will only incur absolutely necessary expenditures," Central said in a statement.
Board members have also agreed to a 20 per cent reduction in their fees.
However Central said its gas revenues had been unaffected with domestic gas prices still expected to rise.
"The company's Gas Acceleration Program remains unaffected with sources of funding being actively pursued," Central said.
"The NT Pipeline expressions of interest closed today and the company remains confident that the interconnect project will be aided by the recent events."
As well as Surprise, Central holds oil and gas prospective acreage across central Australia including farmout agreements with Santos and Total.
Central shares had fallen 0.4 cents, or 4 per cent, to 9.6 cents shortly before the close of trade after touching to a 52-week low of 9.5 cents in earlier trade.
