ASX and Port Moresby-listed oil and gas company, Cue Energy, will list on the NZX market tomorrow, the company announced this morning.
The company, which set up in New Zealand in the 1970s, de-listed from the NZX because the rules didn’t suit the resources sector, said chairman (and Todd Energy’s managing director) Richard Tweedie.
“They have since changed the rules to line up more appropriately with the ASX,” he said.
Cue Taranaki is one of several companies in the Maari partners consortium that made discoveries in the Manaia (10km southwest of Maari) and M2A fields over the last month. About 80km off south Taranaki, the Maari field has about $500 million invested in it from the various players.
Cue will join Todd Energy to further explore licenses adjacent to the Maari field, said chief executive Bob Coppin.
Todd Energy has a 27% stake in Cue. Oil giant PetroChina International now has a 16.31% shareholding.
Cue has 692.7 million ordinary full paid shares on issue and its market capitalisation is about $NZ200 million.
About 25% of the company’s 4,800 shareholders are in New Zealand and hold about 38% of shares on issue.
Mr Tweedie said the time was right to enter the New Zealand market and the listing presented an attractive investment option.
“With oil and gas companies, you often get exploration with no cash being generated, but when a company has got through that phase, where it has exploration capital and a production portfolio, it’s very attractive.”
The Maari oil field began production in February 2009 and with its two further discoveries, amounts to 100 barrels of recoverable oil. “Cue’s investment in the Maari field has created outstanding results,” Mr Tweedie said.
The company has oil production in Papua New Guinea (from the SE Gobe oil field), Indonesia (from the Oyong gas field in Madura, offshore East Java) and New Zealand.
Exxon Mobile intends to build an LNG scheme in Papua New Guinea, allowing Cue to develop has resources there over time, the company said.
Mr Coppin said exploration licenses in the Canarvon Basin, Bass Basin and Timor Sea are promising, particularly Canarvon, which holds “considerable promise.”