Risco seeks board overhaul at Tap Oil

Tap Oil major shareholder Risco Energy Investments has notified the oil and gas explorer of its intention to overhaul the company's board at the next planned annual meeting in February.

Singapore-based Risco plans to move a series of resolutions at the meeting, namely the removal of executive chairman James Menzies, non-executive director Peter Mansell and Risco’s existing nominee on the board, Tom Soulsby.

Risco will seek the appointments of Chris Newton, currently an alternate director at Tap Oil, and Govert van Ek as replacements.

The major shareholder will only enforce the resolutions if all five are approved.

Mr Soulsby has called for the meeting to be held on February 2.

In a statement to the ASX, Tap Oil said Andrea Hall, the only independent non-executive director Risco does not want removed, would step down if Risco’s proposals were approved.

“Ms Hall has advised that she told Risco on November 10 that she did not support Risco’s proposal and that she did not intend to remain on the board of Tap if Risco’s proposed board changes were approved by Tap shareholders,” the company said.

However, Tap Oil said if Risco’s proposal were successful, the company may not comply with corporate regulations.

“Given Ms Hall’s stated intention to resign as a director, Tap is unlikely to comply with the requirement in the Australian Corporations Act to have at least two directors that ordinarily reside in Australia if Risco’s proposed board changes are approved by Tap shareholders,” the company said.

Mr Menzies took over from Doug Bailey as executive chairman in December last year.

Tap Oil reported a $US14.9 million ($11 million) after-tax loss in 2016 due to the softening oil and gas market.

The company's shares finished up 1.5 per cent at 6.6 cents.