Cue Energy Resources Limited (ASX: CUE) has released its First Supplementary Target’s Statement, reiterating the Independent Board Committee’s unanimous recommendation that shareholders reject the off-market takeover bid from Horizon Oil Limited. Cue Energy Resources Limited is an oil and gas production and exploration company with assets across Australia, Indonesia, and New Zealand. The supplementary statement, dated 14 April 2026, provides updated information regarding recent operational developments that further support the board’s stance against the offer. Shareholders are advised to take no action to reject the bid.
A significant development highlighted in the statement is the execution of a new, binding, multi-year Gas Sales Agreement (GSA) with the Northern Territory Government, announced on 13 April 2026. Under this agreement, the Palm Valley Joint Venture, in which Cue holds a 15% interest, will drill two new wells to supply up to 21 petajoules (PJ) of gas, with 3.2 PJ attributable to Cue, 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, expected to materially increase Cue’s contracted gas position, revenues, and operational cash flows from its onshore Australian assets. Preparations for drilling are advanced, with the first well scheduled for mid-2026. This GSA replaces the previously announced Letter of Intent with the Northern Territory’s Power and Water Corporation.
Furthermore, Cue has confirmed that all matters in dispute with Medco concerning the extension of the Sampang Production Sharing Contract have been fully concluded. The Independent Board Committee emphasised that Horizon Oil Limited does not hold a participating interest in the Palm Valley Joint Venture and is therefore not a party to this new, significant Gas Sales Agreement or the associated development wells. This non-participation in a deal expected to boost Cue’s contracted gas production and cash flows is cited as an additional reason for the Independent Directors to unanimously recommend that shareholders reject Horizon’s offer by taking no action. The offer is scheduled to close on 5 June 2026, unless extended or withdrawn.
