Horizon Oil Limited (ASX:HZN), an oil and gas exploration and production company with interests across Australia and Asia, announced today a significant development in its off-market takeover bid for Cue Energy Resources Limited (ASX:CUE). The company confirmed that Cue’s largest shareholder, Echelon Offshore Limited, has accepted Horizon’s offer for all the Cue shares it holds or controls, excluding those subject to a pre-bid agreement. This acceptance has pushed Horizon’s relevant interest in Cue to 50.46% of all shares on issue on a fully diluted basis.
As a result of Echelon’s acceptance, Horizon Oil has successfully fulfilled the 50.1% Minimum Acceptance Condition for its offer. This means the takeover bid is no longer subject to this particular condition. Horizon reiterated the risks for Cue shareholders who choose not to accept the offer, highlighting potential negative impacts on trading liquidity and the difficulty of selling shares should Horizon achieve majority ownership but not reach compulsory acquisition thresholds. The company also noted that as of the announcement date, no potential competing or superior proposal for Cue had emerged, deeming it unlikely given Horizon’s current voting power.
In other updates, Horizon continues to engage with regulatory bodies in New Zealand and the Northern Territory for necessary approvals related to the bid, with applications submitted in March 2026. Separately, the Letter of Intent for a gas sale agreement with the Northern Territory’s Power and Water Corporation for the Mereenie joint venture has expired without a replacement agreement, leading to a suspension of a proposed infill drilling program and a reduction in Horizon’s forecast 2026 capital expenditure by approximately USD 5 million. The joint venture will now pursue gas marketing discussions with other participants. Furthermore, the Takeovers Panel recently concluded that there was no reasonable prospect of making a declaration of unacceptable circumstances regarding an application made by Cue. The condition relating to the minimum bid price was also previously fulfilled on 27 March 2026.
