REG - Nostra Terra O&G Co - Cost Cutting Initiative Completed <Origin Href="QuoteRef">NTOG.L</Origin>

Nostra Terra Oil and GasAnnouncement

10/06/2016 07:06

RNS Number : 8018A
Nostra Terra Oil & Gas Company PLC
10 June 2016
10 June 2016
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
40% Reduction in Overheads Achieved
Further to the announcement of 1 June 2016, Nostra Terra (AIM:NTOG) is pleased to announce the results of its cost-cutting initiative in response to current conditions in the market for oil & gas. In summary, the Board has identified savings in the following areas:
 40% year on year total reduction in combined running costs including;
o 49% reduction in operational overheads
o 10% reduction in Plc costs
 25% reduction in current board and management salaries
The Board began its cost cutting initiative in mid-2015, in response to the prolonged low oil price environment. The Board took the prudent step to begin restructuring the business in anticipation of further pressure on the price of oil over the course of 2016. So far this decision has been vindicated and Nostra Terra now benefits from its reduced overheads at a time when the industry continues to suffer.
A core component of the cost-cutting initiative has been for the Board to take a voluntary 25% pay cut. In light of ongoing weakness in the oil & gas market, which has caused significant declines in company share prices across the sector, the Board felt that this was an appropriate step to take.
With Nostra Terra now better positioned to withstand current market conditions, the Board remains fully committed to securing new assets for the Company, which stand to deliver significant shareholder value over the medium term. 
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"We're pleased to have achieved a significant cut in costs during such a severe downturn in the commodity cycle. We'll strive to keep cost low while our focus remains on increasing production and revenues."
For further information, visitwww.ntog.co.ukor contact:
Nostra Terra Oil and Gas Company plc
Matt Lofgran, CEO

+14809938933
Strand Hanson Limited
(Nominated & Financial Adviser and Joint Broker)

+44(0)2074093494

Rory Murphy / Ritchie Balmer







Cornhill Capital Ltd (Joint Broker)

+44 (0) 20 7710 9610

Nick Bealer / Colin Rowbury



Walbrook PR (Financial PR)

+44 (0) 20 7933 8797

Gary Middleton / Nick Rome










This information is provided by RNS
The company news service from the London Stock Exchange
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