In recent weeks, Terraoil Swiss AG ("TOS" or the "Company") has been confronted with the new global economic situation bought on by the COVID-19 virus. The resulting economic fallout, coupled with the current drop in oil pricing, has led to the Company's decision to immediately shutdown non-performing/uneconomic wells and to reduce the capital expenditure programme in Albania for 2020. In addition, general administrative costs in both Albania and Switzerland are to be evaluated for further reductions.
Applications have been made to available Swiss government assistance programmes, which has resulted in a government backed bank loan (Article 3 / COVID-19 credit). An additional application for COVID-19 credit plus is currently under assessment, with the Company planning to apply for any further government programmes. At present, the Company is assessing all opportunities for cost savings including reducing payroll, operating costs and other general and administrative costs.
The Board and Executive team members have agreed to participate in the shareholder incentive programme which means that 50% of outstanding compensation amounts will be paid with TOS shares. Also, in the future, Board and Executive team member's compensation will be reduced to help the Company remain flexible during the current health and economic environment.