NZ Oil & Gas buys 19.99% of Cue Energy from Todd for $A13.96 mln

New Zealand Oil & Gas [NZX:NZO] has acquired 19.99% of ASX-listed Cue Energy for A$13.96 million from Todd Petroleum Mining, gaining exposure to the Maari field.

The transaction, at 10Ac a share, is expected to be completed today, the company says in a statement. Shares of Cue last traded at 8.5Ac.

Cue has a 5% interest in the Maari field, which NZOG regards as "a quality asset and exposure to it fits our portfolio well," NZOG chief executive Andrew Knight says.

Last month Bill Houston, NZOG's general manager of exploration, resigned less than a year after he took up the role with the company, which has interests in the Tui and Kupe fields.

In August, NZOG posted a 61% drop in annual profit, reflecting rising exploration costs and some foreign exchange losses on its US dollar holdings.

Its shares last traded at 60c and have declined 25% this year.