PERTH (miningweekly.com) – ASX-listed Pura Vida Energy has continued with its cost cutting measures, as the company attempted to battle falling oil prices.
The oil explorer on Tuesday told shareholders that each of its nonexecutive directors had agreed to reduce their yearly base fee from A$100 000 to A$25 000, while the MD’s remuneration would decrease from a base salary of A$385 000 to A$300 000 a year.
All short-term and long-term incentive awards under the company’s remuneration policy had also been suspended, and incentives had been restructured to allow the MD to receive a percentage of cash in respect of farm-outs, asset sales and other cash generating transactions.
Payments would be capped at a maximum of 2% of cash received, reducing incrementally to 0% over three years.
Pura Vida said that the latest rounds of cost cuts were in addition to a 50% cut in employee numbers, the downsizing of the Perth office, the closure of the Melbourne office, and the cut-back on external service providers, travel and other costs.
Pura Vida at the end of March revealed that it was targeting a cost saving of between A$1.2-million and A$1.5-million in the 2016 financial year.