- IGas Energy is to cut the size of its workforce and number of consultants by more than 25% and close the former Dart office in Stirling following a review of its cost base.

The group said the review was carried out in light of the prevailing oil price environment.

IGas says it has been working with suppliers to make meaningful savings across the business.

It adds: "We have also had to make the difficult, but necessary, decision to reduce the size of our workforce and number of consultants employed.

"Overall, there will be headcount reductions of more than 25% including the closure of the former Dart office in Stirling, Scotland.

"The implementation of the cost reduction exercise is already showing significant benefits. We currently anticipate total charges to the company for operating costs and S,G&A of approximately US$39.4/boe (£26.3/boe) for the year to 31 March 2016, excluding reorganisation costs of circa £2.6m which will be incurred in the period."

As at 31 March, the Company had cash of £19.0 million (US$28.0 million) and net debt of £90.9 million (US$134.9 million). This net debt figure takes into account bond repurchases with a face value of US$15.7 million in March 2015; including US$1.0 million of unsecured bonds. The average price paid for the bonds was 84 cents on the dollar.

Separately, the group announced that chief executive and co-founder Andrew Austin is to step down and hand over to chief financial officer Stephen Bowler who takes over as CEO.

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