Tap Oil boss Troy Hayden will step down as the company plans to raise money and cut jobs in an organisational restructure to combat lower oil prices.
The Perth-based oil and gas explorer and producer will begin cutting the number of full-time staff, from 18 to seven, in April to save $1.7 million, with director Mike Sandy also leaving the company's board in May.
Tap Oil made a $US54.04 million ($A72.02 million) full year loss in 2015, worse than 2014's $US44 million ($A58.64 million) loss.
The company plans to raise $7.75 million through a renounceable rights issue as it continues discussions with lenders BNP Paribas and Siam Commercial Bank about its loan terms.
"The prolonged period of lower oil prices has significantly impacted the company's revenue generated from its interest in the Manora oil field (in Thailand), as well as reducing the company's borrowing capacity under the BNP facility," Tap Oil said in a statement on Tuesday.
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Tap Oil said BNP Paribas had told it it could reduce the minimum liquidity amount it needs to hold, from $US10 million to $US3 million, if it can raise $US5 million and hedge half of its Manora production over six to 12 months.
It also was able to comply with the covenants in the BNP facility, Tap Oil added.
Tap Oil, which will continue cutting costs, has received support from major shareholders Risco and Northern Gulf. Both have committed to taking up around $3 million of the rights issue and to underwrite around a further $1.5 million.
The company said both Risco and Northern Gulf would be entitled to a board seat if their respective shareholding reached 25 per cent and outstanding commercial and corporate disputes were resolved.
Mr Hayden will step down from the top job on June 1. However, he'll remain in the position on a part-time basis after that date until a replacement is found.
The rights issue will be available to eligible shareholders on March 18.
On Tuesday, Tap Oil said it wasn't aware of any information that had not been announced to the market, after it was issued with a price query from the Australian Securities Exchange last week.
The company's shares fell 1.2 cents to 8.8 cents.
