Groves Gidney and Collins step down from Trap Oil board

Shares in independent North Sea oil and gas explorer Trap Oil spiked after it was confirmed that two of the senior management team had left in a cost-cutting drive.

Stock jumped by more than a third in early trading after Trap confirmed that chief executive Mark Groves Gidney and chief operating officer Paul Collins had now stepped down from the board.

It follows the departure in August of chairman Simon Bragg as the firm looked to cut general and administrative expenses by a further £1 million on an annual basis.

As a result of the personnel changes and other identified cost reductions, Trap estimates overhead costs will have reduced to £1.5m by January 1.

It will look for further savings in the months ahead and yesterday announced the disposal of its remaining shares in IGas Energy for a total consideration of £1.86m.

After the divestment Trap said it had £18.2m of unrestricted cash available.

Shares closed up 26.9%.