LONDON (Alliance News) - Max Petroleum PLC Monday said cost-cutting measures, both completed and soon to be completed, will result in yearly ongoing cost reductions of around USD4 million.
The oil and gas company focused on Kazakhstan said the USD4 million in costs savings, represent more than 30% of the total general and administrative costs incurred in the financial year ended March 31.
Max Petroleum also said it expects to establish an approximately USD3.8 million reserve in its financial statements for its financial year just ended, for severance and other transitional expenses associated with various cost-reduction measures.
It said that, as part of its expense reduction actions, President and Chief Financial Officer Michael Young will be leaving the company at the end of May, and will be replaced by Kevin Clark, the company's chief accounting officer and company secretary.
Other cost-cutting measures include the closure of the company's Houston office this year, the reduction in size and cost of the company's London office, and a reduction in senior management and administrative personnel in Houston, London and in Kazakhstan, the company said.
Max Petroleum shares were down 1.1% at 1.32 pence Monday afternoon.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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