Troubled Aberdeen company Offshore Hydrocarbon Mapping (OHM) is to cut its workforce, it confirmed yesterday.
A spokesman said jobs were going, but they would be fewer than 10 out of the onshore and offshore staff total of 114. He added: “The company is trying to contain costs as best it can.”
OHM, which specialises in controlled-source electromagnetic imaging (CSEM) surveys to find oil and gas, warned investors last month over its future.
Executive chairman Dave Pratt had said, after OHM reported lower revenue and wider losses for the year to August 31, that the board was considering all options to ensure the company’s continued viability.
These include the sub-charter of one of its vessels for at least 12 months, spot sub-charter of vessels for shorter periods between contracts, the issue of new shares to existing shareholders, a reorganisation resulting in the sale for cash of some parts of the company, or a sale of the entire group.
OHM was also committed to tight management of overheads, working capital and control of capital spending, adding that it would make further cost reductions this year and was in discussions with various parties that had expressed interest in acquiring the firm.
OHM said the directors believed there were reasonable possibilities that a combination of the planned initiatives could be successfully concluded by the end of next month to give it adequate financial resources to fund the planned cost-reduction measures.
It said it also aimed to have financial resources to meet working-capital needs for the near term or to sell the group as a going concern for the benefit of shareholders.
OHM added that the failure to conclude one or more of these initiatives would result in significant doubt over its ability to continue.
OHM listed on the Alternative Investment Market in 2004. Shares closed unchanged yesterday at 4.25p.
Jobs at some other oil and gas industry companies in the north-east have a questionmark against them.
It emerged on Wednesday that more than 100 jobs could be at risk at a North Sea drilling contractor following Talisman Energy’s decision to put its platform drilling in the region on hold.
Sources close to Odfjell Drilling UK in Aberdeen said staff had been informed that 110 out of 175 offshore personnel would lose their jobs and a further 20-30 onshore staff would go.
It was also confirmed this week that more than 100 north-east jobs are at risk at international oil service company Baker Hughes Inteq, while Schlumberger, might also cut employee numbers in the Aberdeen area.