Trinity Exploration makes COO redundant amid cost-saving strategy

Upstream oil and gas company Trinity Exploration and Production has made its chief operating officer redundant.

The London-listed company said the decision to relieve Craig McCallum of his duties came as the ongoing strategic review process had identified a series of cost savings measure that could be implemented.

“In light of the company's current funding position and the low oil price environment, the company has identified a number of cost reduction measures which include management changes and a redundancy programme across functions,” the group said.

McCallum will leave his post on 31 March next year, Trinity added.

The company did not detailed what the other measures were, although it indicated they are expected to result in a $1.6m reduction in administrative costs, which would translate in savings of approximately $300,000 in the current financial year.

In the first half of 2015, the group saw its administrative costs slashed from $10.4m a year earlier to $5.7m.

Trinity added it expects its operating costs in 2015 to be “significantly lower” than last year and was on target to reduce operating costs by 21.2% to $26m.

"The measures we have taken to reducing staffing across the business reflect the level of investment activity justified by the current oil price,” said group chief executive Joel Pemberton.

“Crucially, we are retaining a strong, experienced core of operational staff to ensure that our assets continue to be run to the highest standards.”

Trinity shares were down 3.97% to 5.81p at 0946 BST on Wednesday.