Cue Energy (ASX:CUE) - CEO, Matthew Boyall
CEO, Matthew Boyall
Source: Matthew Boyall/LinkedIn
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Cue Energy (CUE) enters a $7 million, two-year unsecured loan agreement with New Zealand Oil & Gas (NZO)
  • The agreement was entered to support Cue’s exploration and development activities as well as ensure sufficient working capital
  • Cue will carry out exploration at its Amadeus Basin, Mahato PSC and Sampang PSC production assets with work already underway
  • The loan has an interest rate of 10 per cent per annum and a 1.5 per cent establishment fee of the loan amount
  • CUE shares have ended the day up 1.47 per cent at 6.9 cents and NZO shares have ended the day flat at 41 cents

Cue Energy (CUE) has entered a $7 million, two-year unsecured loan agreement with New Zealand Oil & Gas (NZO).

The agreement was entered to support Cue’s exploration and development activities as well as ensure sufficient working capital.

Cue will carry out exploration at its Amadeus Basin, Mahato PSC and Sampang PSC production assets with work already underway. Over the next 12 to 24 months, Cue will aim to increase oil and gas production.

The loan has an interest rate of 10 per cent per annum and a 1.5 per cent establishment fee of the loan amount.

As New Zealand Oil & Gas is a related party of Cue and holds 50.04 per cent of the shares, an independent board committee was appointed to review and approve the terms of the loan.

“Cue has a number of exciting exploration and development projects within our portfolio, which are all aimed at increasing our oil and gas production,” CEO Matthew Boyall said.

“This loan will ensure Cue retains the financial strength to participate in not only our committed projects but any other proposals which arise to increase production at our assets.

“The terms of the loan are structured to provide flexibility for the loan amount to be reduced as outcomes of individual projects become clearer.”

CUE shares were up 1.47 per cent to trade at 6.9 cents at market close. NZO shares ended the day trading flat at 41 cents.

CUE by the numbers
More From The Market Herald
The Market Herald Video

" Los Cerros (ASX:LCL) reports “highly encouraging” metallurgical results for Tesorito

Los Cerros (ASX:LCL) has reported "highly encouraging" results from metallurgical testwork at the Tesorito deposit within…
The Market Herald Video

" Critical Resources (ASX:CRR) completes 5000m Mavis Lake drill program

Critical Resources (ASX:CRR) has completed the inaugural 5000-metre drilling program at its Mavis Lake lithium project…
The Market Herald Video

" Bubs Australia (ASX:BUB) to strengthen US infant formula supply under FDA framework

Bubs Australia (ASX:BUB) has expressed an interest in helping to diversify and strengthen the US infant…

" Chalice Mining (ASX:CHN) intersects new zone at Dampier, Julimar

Chalice Mining (ASX:CHN) intersects a new nickel-copper-platinum group elements (PGE) sulphide zone in initial drilling at…