In the statement, unlisted US Oil & Gas said: “Currently, the company is actively engaged in seeking the necessary investment to drill at least one well, and efforts will continue through Q1 2022.
“Meantime, the company does not intend to solicit funds solely for day-to-day overheads.
“Instead, the board has resolved to implement, from 31 December 2021, a plan that includes curtailing the company’s operations by reducing equipment holdings, storage facilities and other overheads, including personnel costs.
“As part of this effort, salaries, including directors’ remuneration, will be cut by 80%. Core corporate activities, including audit, regulatory and legal functions will continue.”
On strategy, it added: “The board’s strategy is to position the company to take advantage of any positive developments and opportunities arising in the longer term.
“The board has carefully considered the company’s options in the event that funds are not raised soon enough to enable drilling on the leases set to expire in early 2022. Although those leases will expire if oil is not produced in paying quantities, other prospective leases will still be held by the company.
The company said that, in the short term, “all efforts are being directed to raising the necessary funds to drill at least one well before the leases of current interest expire”.
Read More: US Oil & Gas PLC updates on funding effort