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Trapoil CEO Mark Groves Gidney. Image courtesy of Trapoil.

London-based independent upstream company Trapoil announced major managerial exits Tuesday and backed out of a farm-in option in an effort to cut costs.

Trapoil’s Chairman Simon Bragg is resigning immediately.

CEO Mark Groves Gidney and COO Paul Collins will also exit after a two month transition period.

Groves and Collins helped found the company in 2008.

Non-Executive Marcus Stanton will take the reigns as Non-Executive Chairman to oversee the transition process.

The Board of Directors will continue to review the its composition “in light of the cost reduction strategy.”

“It is sad for myself and Paul Collins to be leaving the company… However it has been a struggle for small cap explorers in the North Sea and in the circumstances we both feel that the proposed strategy is in the best interest of shareholders,” Gidney said.

Trapoil is focused on the UK Continental Shelf region of the North Sea.

As part of the cost cutting measures, Trapoil has allowed its farm-in option with France’s Total to expire.

The option was for a 35 percent stake in the P1916 license, named Alfa, located in the UK North Sea.

Trapoil said the well drilling costs would have been significant for the company.

Trapoil will continue to evaluate the value of its Romeo asset, a licence that is adjacent to Alfa.

The company also canceled the three year facility it entered into with GE Energy Financial Services in January 2014.

Cancelling the facility will cost US$300,000 to be paid in 2014 and save approximately US$880,000 annually.

In 2013, Trapoil had a revenue of US$50.86 million (£30.3 million) and had a loss before tax of US$17.29 million (£10.3 million).