Junior North Sea-focused exploration firm Trapoil is to shed more of its senior staff, including its co-founders, in a bid to maintain the value of its assets.
The firm, currently has a mix of carried and paying interests in 11 licenses (33 blocks and part blocks) and production from a 15% stake in the Athena oil field.
Trapoil has been assessing its future options and said its best strategy is to reduce operating costs "to the minimum in order to maintain the company's existing assets alongside seeking to maximise returns from these assets."
The firm already reduced staff numbers and made management pay cuts, as announced in April. But it said it is now taking further steps to "significantly reduce the cost base."
"This is expected to result in a number of senior personnel leaving the business."
Simon Bragg is resigning his position as chairman, with immediate effect. Co-founders Mark Groves Gidney, CEO, and Paul Collins, COO, have agreed to step down from the board on completion of an orderly transition period, expected to take about two months.
Marcus Stanton, a non-executive of the company, will assume the position of non-executive chairman to oversee the transition process.
A three-year loan with Energy Financial Services is also cancelled, to minimise on-going financing costs.
Trapoil has also decided not to farm in to Total E&P UK's Scarinish (Alfa) well, due to further potential delays and cost uncertainties on the well.
Mark Groves Gidney said: "It is sad for myself and Paul Collins to be leaving the company, which we both started seven years ago. However it has been a struggle for small cap explorers in the North Sea and in the circumstances we both feel that the proposed strategy is in the best interest of shareholders."