Oil and gas producer Drillsearch Energy has tapped chief operating officer Walter Simpson as its new chief executive to provide the fresh ideas and expertise it says it needs.
Mr Simpson has been the acting chief executive of the company after the sudden departure in July of Brad Lingo, after more than six years in the job.
Drillsearch had explained his departure as necessary because the company needed fresh ideas and different expertise to move forward.
The Cooper Basin-focused company swung to an annual net loss of $8.1 million in August, compared to a $41.9 million profit a year ago, on the back of tumbling commodity prices.
It had been forced to cut costs and exploration plans after weaker oil prices slashed profitability.
Global crude oil prices have slid to below $US50 a barrel over the past 12 months, as rising supplies and lacklustre demand have prompted a steep decline since mid-2014, when crude fetched more than $US100 a barrel.
Mr Simpson joined Drillsearch as chief operating officer in March from BG Group subsidiary QGC. He has previously worked in the industry worldwide for BG, Baker Hughes and BP.
Strong gains in the oil and gas producer's hedging program have helped soften the impact of the slump in commodity prices, but the company has been under pressure amid market speculation of a takeover bid.
Drillsearch expects to increase production from its Cooper Basin business by 50 per cent over the next five years.
It completed its largest ever drilling program in the past year, including 12 new discoveries across its onshore Queensland and South Australia Cooper-Eramonga Basin assets.
Drillsearch's largest shareholder is Australian billionaire Kerry Stokes, with a 19.9 per cent stake.
At 1430 AEST, Drillsearch shares were 1.5 cents lower at 51.5 cents.
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