Houston — Houston-based independent Meridian Resources Corp. (NYSE: TMR) will be cutting jobs as part of its efforts to reduce the company’s general and administrative costs by around US$12 million. The company is also attempting to reduce its annual field lease operating costs by US$3.3 million.
The company will be reducing its work force, including managers, salaried and hourly workers, field personnel and contract employees. Meridian will also trim its portfolio of development and exploration prospects, reducing its working interest in high cost areas and “becoming more efficient” with drilling and lease operating expenditures.
Meridian’s interim CEO Paul Ching said, “During my first few weeks as CEO, I have taken a hard look at numerous scenarios resulting in a range of price-adjusted expected cash flows for 2009. I have determined that difficult, but essential, decisions are required and must be implemented quickly as we work our way through this economic downturn and strive to improve shareholder value. Hence, we are immediately taking the outlined actions to reduce our cost structure. It’s never easy to let employees go, particularly those who have been with us for many years and who have made many contributions to the company.”
Meridian has interests in fields onshore Louisiana and Texas and offshore Louisiana in the East Cameron area.