Drillsearch Energy has explained chief executive Brad Lingo's sudden departure as necessary because the company needs fresh ideas to move forward.
Mr Lingo will leave the oil and gas explorer and producer immediately, after more than six years in the job.
Drillsearch chairman Jim McKerlie said the departure was by mutual agreement and that the board had decided new leadership was needed to take the business into its next phase of growth.
"As we have grown, we have introduced high calibre people that bring the talent required for the next stage of the company's development," he said.
Mr Ling left on a high note, helping transform Drillsearch in six years from a junior explorer to a leading Australian mid-tier oil and gas company, with production of three million barrels of oil equivalent this year, a company statement said.
"In considering CEO succession, the board felt that Drillsearch would benefit from the introduction of fresh ideas and a different expertise set to guide the company for the next growth phase," said Drillsearch.
"The board also decided that in order to ensure that Drillsearch continues to have clear leadership and to minimise distractions, Mr Lingo would leave immediately."
Mr Lingo, who was on a $1.64 million total pay packet with base bay of $775,000, will be replaced by chief operating officer Walter Simpson in an acting role until a permanent replacement is found.
On Wednesday, Drillsearch said its margins were strong, but this year's production would be below the 3.4 mmboe of output in 2013/14.
The company 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.
The plunge in oil prices from above $US100 a barrel to below $US60 for much of calendar 2015 has forced companies such as Drillsearch to quickly cut costs.
Drillsearch's largest shareholder is Australian billionaire Kerry Stokes, with a 19.9 per cent stake.
He also has a 19.9 per cent stake in Beach Energy.
Beach and Drillsearch are the biggest producers in the Cooper Basin, which delivers gas to the east coast.
Drillsearch shares closed one cent, or 0.94 per cent, higher at $1.075.
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