Cue Energy Resources Limited (ASX: CUE) has issued its First Supplementary Target’s Statement regarding the off-market takeover bid by Horizon Oil Limited. The Independent Board Committee of Cue Energy Resources, an Australian-listed oil and gas production and exploration company with operations across Indonesia, onshore Australia, and offshore New Zealand, continues to unanimously recommend shareholders reject the Offer. Shareholders are advised to take no action to reject the bid.
A notable update is the execution of a new, binding, multi-year Gas Sales Agreement (GSA) by the Palm Valley Joint Venture, which includes Cue Energy, with the Northern Territory Government. To support this GSA, the Palm Valley Joint Venture made a Final Investment Decision to drill two new wells. These wells are expected to supply up to 21 petajoules (PJ) of gas, with 3.2 PJ attributable to Cue, on a firm basis from the second half of 2026 through to the end of 2034. The gas is contracted at a fixed price with CPI escalation and take-or-pay provisions, forecast to materially increase Cue’s contracted gas position, revenues, and operational cash flows from its onshore Australian assets. Drilling for the first well is slated for mid-2026, with production anticipated progressively from late 2026. This new agreement supersedes a prior Letter of Intent.
Additionally, Cue Energy confirmed the full resolution of a potential dispute with Medco concerning the Sampang PSC extension. The Independent Board Committee carefully reviewed these developments and reiterated its unanimous recommendation for shareholders to reject Horizon’s offer. A key factor is that Horizon Oil Limited does not hold an interest in the Palm Valley Joint Venture and is thus not party to the new Gas Sales Agreement or its associated development wells. These developments are poised to significantly enhance Cue’s future financial performance, providing further rationale for the committee’s ongoing rejection.
