Eco (Atlantic) Oil & Gas Ltd. said on Wednesday in light of the COVID-19 pandemic, the company continues to take all of the recommended measures to protect the welfare of its personnel.
“Ensuring the safety of employees remains a major priority for the business and the company has taken steps to secure their health, safety and well-being at this difficult time. As such, Eco has curtailed all travel and has installed a company-wide work from home policy until such time as Government restrictions are lifted,” Eco Atlantic said.
In parallel, given the recent lower oil price environment and current market conditions, since February 2020, the company has undertaken a strict cost cutting programme across all aspects of the business, aside from the necessary maintenance of certain operations.
“These include termination of non-core services and cessation of business-related travel. In addition, the Board and management are voluntarily taking pay cuts of up to 40% starting in April 2020 and this will be kept under review on a monthly basis thereafter,” the company stated.
Eco Atlantic said it continues to monitor its operating budget for 2020 and to work closely with its partners to discuss and plan next steps.
“To date, Eco has met all of its work commitments for 2020 under the various petroleum agreements offshore Guyana and Namibia, and thus only minimal costs are expected to be incurred over the remainder of the year,” the company said.
As at 31 March 2020, the company continues to benefit from its strong balance sheet, with cash and cash equivalents of CAD$26.5 million (US$18.8 million) and zero debt.
“Eco remains fully funded for its share of further appraisal and exploration drilling at Orinduik block offshore Guyana, up to US$120 million (gross). In light of the cost cutting measures described above, preserving the company’s significant cash balance, the Board believes Eco will be in a robust position to progress its exploration strategy when market conditions improve, and operations are able to resume,” the company said.
Eco Atlantic holds a 15% working interest in the 1800km2 Orinduik Block situated in shallow water offshore Guyana. Tullow Oil holds 60% and Total EP Guyana BV (Total) holds 25%.