The company said the need to receive medical treatment would limit Ellyard fulfilling the duties of the CEO of a large international company. It said he would remain on the board as a non-executive director, at least until a new CEO is appointed.
Executive director, Scott Spencer, will be acting CEO until a replacement is found. The Hardman board has appointed Russell Reynolds Associates to conduct an international search for a new CEO, anticipating a new appointment can be made early in the New Year. Russell Reynolds recently conducted successful CEO searches for Woodside and Santos.
Hardman chairman Alan Burns said Ellyard had been an essential and major part of Hardman’s success. “I thank him for his dedication and achievements and understand his desire to spend more time with his family and wish him and his family the very best for the future.”
Ellyard said it was difficult to step aside after eight years of very exciting and enormously successful growth. He had been managing director and CEO since August 1996 and had overseen Hardman’s international expansion into eight countries in Africa, South America and the Australian region.
“Although this decision has been made reluctantly, the change in leadership comes at a time when Hardman is strongly placed to become a significant oil and gas producer with an international focus,” he said.
“The company now has established petroleum reserves and expects to become a significant oil producer in 2006. Moreover, it has large upside potential in both discovered resources and undrilled prospects. Hardman is also financially sound with over AU$300 million in cash reserves and no current debt, although a bank facility for Chinguetti development is being finalised.
“I will now take a holiday from executive management and spend more time with my family after many years of international travel and working long hours developing the company’s oil & gas interests. This change will also allow me to pursue other interests and continue other existing non-executive board roles. I will be able to relax a little, confident that Hardman Resources has the management and infrastructure to continue its rapid growth into one of Australia’s most successful oil and gas companies.”
The move will become effective on October 29.
