In last trading session, the stock price of Glori Energy Inc (NASDAQ:GLRI) jumped more than 7% to close the day at $0.193. The company reported its 4Q2015 financial and operating results last month wehreit stated that its Phase 2 of AERO placement at Coke Field is progressing as planned.
Glori Energy amended its credit deal to remove financial covenant needs and borrowing base redeterminations till maturity in 2017. The cost reductions done in 1Q2015 are estimated to derive annualized cost benefit of nearly $3 million. Stuart Page, the CEO of Glori, stated that as they enter another year in a tough commodity price environment, they are focused on preserving liquidity and balance sheet while dynamically pursuing multiple possibilities for augmenting financial flexibility.
The company have considerably reduced expenses and are holding a conservative approach to overall capital spending. In the last few months, the management have taken noteworthy steps to mitigate costs across the company, with total cost savings projected at $3 million on a yearly basis, of which nearly $720,000 is recorded through field operating cost reductions at producing properties.
Glori records revenues through the sale and production of natural gas and oil and through services offered to third-party oil firms. Total revenues for 4Q2015 was $1.8 million compared to $3.8 million in the same period, a year earlier. This decline can be attributed to the significant plunge in oil prices, reduced services project activity and lower production.
Oil and Gas Segment revenues plunged to $1.5 million from $3.2 million in 4Q2014, indicating a 42% decline in average oil prices obtained and a 12% plunge in gas and oil volumes produced in 4Q2015. The revenue from AERO Services Segment cane at $261,000 in 4Q2015 compared to $608,000 in the same period, a year earlier. It can be attributed to the reduced level of spending and lower interest in introducing new projects due to the lower oil prices.