28 Sept 2017other● Neutral
Corporate governance checklist (Appendix 4G) lodged with the annual report, pointing to the governance statement on the website. Administrative only; no new business information.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
28 Sept 2017annual report● Neutral
2016/17 annual report repeating the preliminary results: A$100m-plus losses over two years, cash down from A$27m (June 2015) to about A$12m, overheads cut to about A$2m a year. Chairman expects production cashflow to exceed operating costs.
13 Sept 2017investor presentation● Neutral
Conference presentation repeating known facts: A$35m FY17 revenue, ~1,600 boepd, A$12.4m cash, no debt, market cap about A$44m. New detail: Maari platform permanent repairs completed August 2017; Paus decision targeted early 2018, drilling 2019.
29 Aug 2017annual report● Neutral
FY17 loss was A$17.3m, down 80.1% from A$86.8m in FY16, on revenue of A$35.0m (down 22.9%). Cash ended at A$12.4m with no debt. Management says admin costs are about A$2m a year and operations should be cashflow positive in FY18.
11 Aug 2017asset acquisition disposition● NeutralMajor
Cue becomes operator and 100% holder of WA-389-P as BHP Billiton withdraws, lifting its interest from 40%. Cue sees Triassic gas leads similar to Ironbark and plans to seek suspension of the permit year before deciding on a Year 5 well commitment.
16 June 2017director officer appointment● NeutralMajor
From 1 July 2017 Matthew Boyall, Commercial Manager since 2013, becomes permanent CEO on A$300,000 base. Worner reverts to non-executive chairman. CFO Andrew Knox leaves after 22 years; Melanie Leydin becomes CFO/Company Secretary. Resolves the interim CEO question.
26 May 2017farm in farm out agreement● Neutral
Cue extends BP's option over 42.5% of WA-359-P from May to 25 October 2017. International companies are in the data room, and the extra time lets reprocessed 3D seismic be included. Exercise would fund 50% of the Ironbark well; the partner search is still unresolved.
23 May 2017other▼ BadMajor
Cue paid US$6.8m to settle a Sampang Jeruk project reimbursement dispute, active since late 2011 and decided by arbitration. US$4.6m had been accrued; the remaining US$2.2m is expensed. A cash outflow for shareholders.
24 Feb 2017half year report▼ Bad
Half to December 2016: loss of A$12.44m, including a A$6.39m Maari impairment and A$2.31m loss from discontinued US operations. Production income fell 29% to A$18.1m, though gross profit rose 12% to A$6.5m. Cash A$22.9m.
12 Jan 2017production update▲ GoodMajor
Operator OMV says Maari restarts this week after the platform strut crack was clamped and the water injection flowline replaced. A permanent repair is likely by mid-2017. Ends the shut-in that began 23 November 2016.
20 Dec 2016farm in farm out completion▲ GoodMajor
The regulator approved BP taking 80% and operatorship of WA-409-P, completing the 13 October 2016 deal. BP funds Cue's 20% share of the work for 3 years. Cue is still seeking partners for WA-359-P to drill Ironbark in 2018.
8 Dec 2016other● Neutral
Updated securities trading policy covering insider trading rules, closed periods and approval for trades. Administrative only; no new business information.
25 Nov 2016other● Neutral
Chairman says Cue was not sustainable before the June strategy reset and low oil prices still hurt profit. Further overhead cuts are planned, from A$4.4m to about A$2.5m a year by end of FY2017, with restructuring costs expected to be funded by savings.
24 Nov 2016production update▼ BadMajor
Operator OMV shut in Maari and began de-manning the platform after a 1.4 m fatigue crack was found in a wellhead platform strut. OMV says there is no risk to people or the environment. The shutdown was due 5 December anyway for the water injection repair; restart date not given.
24 Nov 2016investor presentation● Neutral
AGM presentation repeats the three-part strategy: overheads cut from A$7.2m to A$4.4m, Sampang project in 2H 2017, Ironbark estimated at 15 Tcf with BP farm-in. Notes a Bormindo rig 3 contracted for Naga Selatan-2 and a possible Mahakam Hilir farm-out in 1H 2017.
10 Nov 2016asset acquisition disposition● NeutralMajor
Cue sells its 80% interest in the Pine Mills field in Texas, plus its operating subsidiary, land and a workover rig, to Mosman Oil and Gas for US$975k. Partners have a 20-day pre-emption option; completion expected by end-2016. Delivers the planned US exit.
20 Oct 2016annual report● Neutral
Annual Report 2015/16 repeats the previously released results: net loss A$87.46m, cash A$20.5m, no debt, average production ~2,285 boe/day. Gives a 12-month share price range of 4.8-8.1 cents.
20 Oct 2016other● Neutral
Annual corporate governance statement for FY16 describing board practices. Notes a four-director board and the Executive Chairman acting as interim CEO. No new commercial information.
13 Oct 2016farm in farm out agreement▲ GoodMajor
BP agrees, subject to government approval and due diligence, to take 80% and operatorship of WA-409-P, funding Cue's remaining 20% through three years of work. BP has an option to May 2017 for 42.5% of WA-359-P with 50% of a well funded. Resolves the long Ironbark farm-out search.
12 Oct 2016regulatory community update▲ GoodMajor
WA-409-P renewed for 5 years by the regulator, resolving the open renewal. First three years require 325 km² of seismic reprocessing and studies (about A$2m); a A$50m exploration well falls in year 4. Covers the giant Ironbark prospect.
30 Sept 2016annual report● Neutral
Statutory 2015/16 accounts, expanding on the earlier preliminary result. Notes Naga Selatan-2 appraisal planned for 2017, with a possible farm-down from 100%, Mahato terms still being negotiated, and Ironbark farm-out talks continuing. Pine Mills sale planned for 2H 2016.
30 Sept 2016other● Neutral
Appendix 4G (corporate governance disclosure checklist) cover note only; no new business information in the text provided.
22 Sept 2016material agreement▲ GoodMajor
Sampang joint venture (Cue 15%) approved, subject to government approvals, a project switching Oyong and Wortel to gas-only, extending field life by at least 2 years to 2020 or beyond. It lifts 2P reserves ~17 bcf (37%) and cuts annual production costs from about US$50m (2016) to about US$22m by 2018.
22 Aug 2016annual report▼ BadMajor
Year to June 2016: net loss A$87.46m after impairments (Mahakam Hilir A$40.71m, Mahato A$5.33m, Maari A$25.10m) and a switch to successful-efforts accounting, despite production up 24% to 0.82m boe and revenue up 23% to A$45.41m. Cash fell to A$20.49m; no debt, no dividend.
18 Aug 2016director officer appointment● Neutral
Andrew Knight resigns as a non-executive director and is replaced by Duncan Saville, a director of NZOG, the largest shareholder. Board stays at four, with NZOG-linked representation unchanged.
14 June 2016security holder rights change● Neutral
Cue sets up a sale facility for holdings of 7,716 shares or less (under A$500 at 6.48 cents); 1,639 of 4,305 holders qualify. Shares are sold at no less than 5.5 cents unless holders opt out by 1 August 2016. Part of the overhead-cutting plan.
8 June 2016other● NeutralMajor
New board sets strategy: a sustainable business, disciplined growth and step-change opportunities (Ironbark). Overheads to be cut 40% to about A$4.4m a year. Cue will exit US onshore assets and New Zealand exploration acreage, and limit Mahato spending until its legal rights are protected.
4 May 2016regulatory community update▲ GoodMajor
SKK Migas approved a four-year extension of the 100%-owned Mahakam Hilir exploration period to May 2020, with two contingent wells Cue can drill or withdraw from. Cue expects to announce an internal volume estimate for Naga Selatan-2 in the second half of 2016.
14 Apr 2016regulatory community update▲ GoodMajor
Regulator approved suspension of the WA-359-P Year 3 well commitment and extended the permit term, both to April 2018, instead of October 2016. Cue holds 100% of the permit containing the 15 Tcf Ironbark prospect; the farm-out continues, giving more time to find a partner.
29 Mar 2016director officer appointment● NeutralMajor
Grant Worner becomes interim Executive Chairman (and CEO) for six months at A$35,000 a month from 23 March 2016. Board cut from five to four directors, with annualised board costs down about 40%. Priorities: producing assets, recent exploration successes, lower overheads.