Cue Energy Resources Limited (ASX: CUE) has released its Activities Report for the quarter ended 31 March 2026, highlighting a significant gas sales agreement with the Northern Territory Government and a return of capital to shareholders. The company, an independent oil and gas exploration and production firm with a diversified portfolio of development and production assets across Australia, Indonesia, and New Zealand, also provided an update on the unsolicited takeover offer it is currently facing.
A key highlight from the report is the signing of a long-term Gas Sales Agreement (GSA) with the Northern Territory Government. Under this agreement, Cue is set to supply up to 3.2 petajoules (PJ) of gas through to the end of 2034, featuring take-or-pay provisions and a fixed price indexed to inflation. To underpin this GSA, two development wells are scheduled to be drilled in the Palm Valley field, with drilling expected to commence mid-year. Financially, Cue returned $1.7 million to shareholders through a 0.25 cent per share dividend during the quarter, bringing total dividends paid over the past two years to more than $33 million. The company reported H1 FY2026 revenue of $25.7 million and underlying EBITDAX of $13.5 million, closing the quarter with a strong cash balance of $11.5 million from quarterly cash receipts of $12 million.
Regarding the unsolicited, conditional, off-market takeover offer from Horizon Oil Limited, Cue established an Independent Board Committee comprising its independent directors to assess the proposal. Legal and financial advisers have been appointed to assist in this review, with Cue having already released its Target’s Statement and a First Supplementary Target’s Statement. The offer is slated to close on 5 June 2026, unless further extended or withdrawn. Operationally, the report noted lower oil production in the Mahato PSC due to regional precautionary measures following a pipeline incident unrelated to Cue’s operations, and reduced Maari oil production in New Zealand due to a scheduled maintenance shutdown and a well fault. Cue also confirmed it will not participate in the Paus Biru development and intends to exit the Sampang PSC by December 2027.
