Horizon Oil Achieves 50.46% Stake in Cue Energy, Removes Offer Conditions

Horizon Oil Achieves Majority Stake in Cue Energy

Horizon Oil Limited (ASX:HZN) has officially crossed the 50.1% minimum acceptance threshold in its off-market takeover bid for Cue Energy Resources (ASX:CUE), securing a relevant interest in 50.46% of Cue’s shares on a fully diluted basis. This milestone removes the minimum acceptance condition from the offer, advancing Horizon’s control over Cue to a majority holding. The company now holds 51.42% voting power on an undiluted basis, consolidating its grip on Cue’s future direction.

Horizon’s largest shareholder partner in Cue, Echelon Offshore Limited, has accepted the offer for all shares it controls except those bound by a pre-bid agreement. With no superior or competing proposals on the horizon, Horizon considers the prospect of alternative bids to be low. This dynamic places pressure on remaining minority shareholders, who face potential liquidity challenges if they opt not to accept the offer, as a reduced free float could impair trading activity.

Regulatory Approvals and Takeovers Panel Outcome

While Horizon has made progress in securing acceptances, regulatory approvals remain a key hurdle. Applications for necessary consents under New Zealand’s Crown Minerals Act and Northern Territory petroleum legislation have been lodged, with ongoing engagement with authorities. The outcome of these processes will be critical to the bid’s ultimate success.

On the legal front, Cue’s application to the Takeovers Panel was dismissed on 13 April 2026, with the Panel finding no reasonable prospect of unacceptable circumstances. This ruling removes a significant obstacle for Horizon, allowing the takeover to proceed unimpeded by regulatory challenges.

Mereenie Drilling Suspension Cuts Capital Expenditure

The Mereenie joint venture, in which Horizon participates, has suspended its planned infill drilling program following the expiry of a letter of intent with the Northern Territory’s Power and Water Corporation (PWC) without a replacement agreement. This development reduces Horizon’s forecast capital expenditure for 2026 by approximately USD 5 million. The existing gas supply agreement with PWC remains in force through 2030, but the joint venture will now focus on securing new gas sales contracts with other market participants.

This operational update echoes Horizon’s earlier announcement detailing the suspension and capex cut, underscoring the challenges in securing new gas sales agreements in the current market environment. The joint venture retains flexibility to resume drilling if conditions improve, but for now, the focus shifts to gas marketing efforts.

Implications for Cue Shareholders and Next Steps

Horizon encourages Cue shareholders to accept the offer, highlighting the risks of remaining minority shareholders amid reduced liquidity and potential trading challenges. With key conditions now fulfilled and regulatory processes underway, the bid is poised to move toward completion, though uncertainties remain around regulatory timing and market dynamics.

Investors should monitor updates on regulatory approvals and any shifts in gas sales arrangements at Mereenie, as these factors will materially influence Horizon’s operational outlook and the ultimate value proposition of the Cue acquisition.

This development follows Horizon’s earlier suspension of Mereenie infill drilling, providing continuity to the evolving narrative around Horizon’s strategic execution in the region.