By Robb M. Stewart
MELBOURNE, Australia--Drillsearch Energy Ltd. (DLS.AU) has
parted with its chief executive of six years and signalled the
company plans to break with its singular focus on oil and gas
operations in Australia's Cooper Basin.
Drillsearch said on Friday that Brad Lingo was leaving the
company by mutual agreement, effective immediately. Chief Operating
Officer Walter Simpson, who joined from BG Group PLC (BG.LN) in
March, has taken on the role of acting-CEO while a global search
for a new CEO and managing director, the company said.
The shift comes after media mogul Kerry Stokes' Seven Group
Holdings Ltd. (SVW.AU) in May lifted its interest in both
Drillsearch and Beach Energy Ltd. (BPT.AU), which are among the
biggest producers of oil and natural gas in the Cooper Basin, to
19.9% from 18.9%.
Mr. Lingo is credited by Drillsearch for helping transform it
from a small exploration firm into a mid-tier oil and gas company.
As CEO, he had focused the company on the Cooper Basin that
straddles the borders of South Australia and Queensland states, and
sold small noncore operations and offshore and international
assets.
Chairman Jim McKerlie said the company would now benefit from
the introduction of fresh ideas and different expertise to guide
the company on its next phase of growth. The board had decided that
Mr. Lingo should leave immediately to ensure Drillsearch continued
to have clear leadership and to minimize distractions, he said in a
statement.
"Our Cooper Basin business is well developed and we will
continue to work hard at this. However, we must actively look to
the future and make sure we continue to deliver growth to our
shareholders," Mr. McKerlie said.
He said while the company would seek to grow in the Cooper
Basin, it would look further afield for opportunities in other
Australian basins or in time zones that could be easily managed
from Australia.
He said Mr. Lingo had left on a high note following operational
success in fiscal 2015, and was to be congratulated on leaving the
company in a strong position.
Drillsearch on Monday forecast production of between 2.8 million
and 3.2 million barrels of oil equivalent in the year through June
against 3 million in the just-ended year.
Write to Robb M. Stewart at robb.stewart@wsj.com
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