• Headcount and direct salaries to be reduced by 41%
• Restructure effective from Q1 2025
• Focus on administration cost controls to continue
• Options for production enhancement at gas fields under analysis

Metgasco Ltd has announced a restructuring of the business, which will result in a 41% reduction in staff headcount and a 41% reduction in direct staff salaries. The changes will take effect in the first quarter of 2025, and the company expects to incur approximately $0.47 million in redundancy costs during this period. Despite the need for these cost-saving measures, the company acknowledges that it will be saying farewell to many long-serving and dedicated employees who have provided unwavering support since the company's listing. Metgasco will continue to focus on its Southern Flank gas fields, Vali and Odin, and is reviewing further options for enhancing production from existing wells. This includes addressing the issue of scale accumulation, which has been found to be impeding production and interfering with accurate metering. The company has already achieved success in addressing this issue at the Odin-1 well, where a more than 2.3-fold increase in production was reported following scale removal. Metgasco is now investigating low-cost evaluation, remediation, and optimization projects, with work commencing this week on installing chemical injection equipment in the gas line to inhibit scale production in the Odin meter. The company is encouraged by the possibilities for production enhancement at the Vali gas field as well, although further investigation will be required before this can be confirmed.