- Pancontinental (PCL) leaders are joining the ranks of directors cutting their own paychecks to help support their company
- The micro-cap oil and as explorer told shareholders today CEO Ernie Myers will be slashing his salary in half to offset the impact of COVID-19
- Other directors are taking either 50 per cent or 25 per cent cuts to their salaries
- On top of this, only essential exploration work is going ahead as the company tries to weather the coronavirus storm
- Pancontinental said it expects the impact of COVID-19 to be felt for years
- Shares in Pancontinental have gone untouched today, currently sitting grey at 0.1 cents each
The leadership team of oil and gas explorer Pancontinental (PCL) is joining the ranks of managers slashing their own pay to help their company.
The coronavirus plays no favourites, with Pancontinental proving it's not just leaders of big-caps turning healthy profits that are using their own wallets as the first line of defence.
The micro-cap oil and gas company today highlighted its own costs-reduction measures put in place to minimise the impact of COVID-19.
Among the forefront of these is a 50 per cent cut to CEO Ernie Myers' salary. Non-executive Directors will also take a 50 per cent cut to their fees.
On top of this, the company secretary is cutting his paycheck by 25 per cent, with other staff following suit.
Energy companies have taken a particularly hard blow from the COVID-19 pandemic, with already-slumping oil prices exacerbated by the price war tension between Russia and Saudia Arabia.
Pancontinental said it expects the economic and social impact of COVID-19 to be felt for several years to come.
As far as exploration work is concerned, Pancontinental said it is carrying out the minimum reporting and work requirements for its exploration projects. Other non-essential activities have been put on hold.
Pancontinental has several exploration projects in Australia and Africa. Along with its project in the Queensland Cooper Eromanga Basin, the company is also seeking oil in Namibia and Kenya.
Pancontinental Chairman Dave Kennedy said the company is facing "extraordinary" times on both a personal and corporate level.
"The virus, as well as low oil prices, are likely to affect businesses and industry, including Pancontinental’s activities, for some time to come," Dave warned.
However, he said adversity often brings new opportunities and the company is expecting demand to stay strong for oil and gas despite the temporary setback.
"While oil prices are at a 'low', and alternative technologies slowly take on the world’s energy burden, we cannot escape the fact that oil and gas will remain an important part of the global energy supply for many years," he said.
As for Pancontinental's contribution to the world of oil and gas, Dave stayed optimistic.
"In the short term, I note with considerable enthusiasm that drilling is apparently still planned in the coming months on-trend to at least one of Pancontinental’s offshore Namibian projects," he said.
According to Dave, the company is already taking the first steps to prepare for better times.
Nevertheless, Pancontinental shares have gone untouched today. In early afternoon trade, shares are sitting grey at 0.1 cents each.