Tamboran CEO Joel Riddle exits as US investors tighten grip on Beetaloo gas developer

Shareholder frustration is palpable. But the departure of Joel Riddle is a risk for a development that continues to faces significant opposition.

Joel Riddle, former chief executive of Tamboran Resources.

The chief executive of Tamboran Resources, Joel Riddle, has walked after a boardroom shake-up by powerful US shareholders seeking to tighten control over leadership and accelerate development of its Northern Territory gas assets.

The abrupt departure of Mr Riddle, who led Tamboran for 12 years and steered its 2021 ASX float, comes as the company’s US backers move to install new directors and inject fresh momentum into efforts to deliver first gas from the Beetaloo Basin.

Tamboran confirmed Mr Riddle’s exit as CEO in a statement to the ASX on Monday without providing a reason. The company simultaneously announced the appointment of two new directors with close ties to the US oil and gas industry.

The leadership shift follows growing frustration among shareholders over Tamboran’s languishing share price and perceived delays in bringing gas wells into production.

Chairman Dick Stoneburner – a seasoned Houston oil executive and former head of Petrohawk Energy – has been appointed interim CEO, with support from chief operating officer Faron Thibodeaux and chief financial officer Eric Dyer.

“On behalf of the board, I thank Joel for his dedicated service to Tamboran over the last 12 years,” Mr Stoneburner said.

The board changes coincide with a new agreement struck between Tamboran and US-based Sheffield Holdings, Bryan Sheffield, and their affiliates, which collectively own about 17.6 per cent of the shares.

Scott Sheffield – the father of Bryan and founder of US shale pioneer Pioneer Natural Resources – has joined the Tamboran board, alongside Phillip Pace. Longstanding director John Bell Sr. stepped down.

These changes further entrench the influence of the Sheffields over Tamboran’s strategic direction. Scott Sheffield’s success in shale drilling is well-known on Wall Street.

However, the family’s increased role in the Beetaloo venture could prove politically sensitive. Fracking remains a flashpoint in the Northern Territory, where the gas industry faces opposition from environmental groups and Indigenous landowners.

Industry figures said the incoming CEO will need to build on Mr Riddle’s efforts to maintain support from both the federal and NT governments seen as critical to advancing the development.

“It is a difficult job. Some shareholders might have wanted more but the Beetaloo is not like other parts of the world. They will have to be sensitive to that,” said one industry executive who declined to be named.

Shares in Tamboran rose 1 per cent.

Scott Hanold, analyst at RBC Capital Markets, said investors will be nervous.

“We think investors will need more clarity on the rationale for the change and more specifically what the company is looking for in the new CEO as Tamboran moves into commercialising and scaling the business,” said Mr Hanold.

Mr Riddle, a former private equity executive, was instrumental in establishing Tamboran’s dominant position in the Beetaloo. Under his leadership, the company struck strategic deals with US shale veterans and infrastructure partners and led efforts to fast-track fracking approvals.

His successor will inherit a project under mounting legal and social pressure. Last year, the Lock the Gate Alliance launched legal proceedings aimed at halting Tamboran’s drilling activities, arguing the project’s potential impact on groundwater should trigger federal environmental scrutiny under the national water trigger laws.

Despite holding one of the world’s largest untapped gas reserves, the Beetaloo’s path to development remains fraught with uncertainty – and Tamboran’s new leadership faces the twin challenges of delivering gas to market while navigating intensifying scrutiny.

Originally published as Tamboran CEO Joel Riddle exits as US investors tighten grip on Beetaloo gas developer