- Mosman Oil and Gas said, following the cancellation of the South Taranaki Energy Project (STEP), directors have taken swift action and reviewed its 2016 budget and operational priorities with the objective of minimising short-term expenditure.

"Staff and consultants no longer required have now been made redundant or had their contracts terminated, with only core staff retained who are required to operate the existing permits on a much reduced basis to meet Mosman's revised 2016 budget and operational requirements," it said.

"Once specific operational tasks have been concluded during 2016, further reductions are anticipated.

"Whilst actively addressing the changes to the 2016 budget and operational priorities, reworking exploration plans, and also evaluating new business opportunities, the Executive Directors Mr Barr and Mr Carroll, have also agreed to cap the cost of their services at present.

"Mosman remains in a sound financial position with in excess of AUD 5 million in cash, however, given ongoing uncertainties associated with the current oil price and equity markets, and the uncertainty surrounding how long oil prices may remain depressed, the Board also feels it has a responsibility to continue to monitor and evaluate the effectiveness of its revised business strategy and plans."

At 10:07am: [LON:MSMN] Mosman Oil And Gas Ltd share price was +0.13p at 0.83p

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