Horizon Oil Completes Cue Energy Acquisition, Boosts Production and Reserves

Australia-listed Horizon Oil has finalized its acquisition of compatriot Cue Energy, securing a 57.03% shareholding following a takeover bid launched in March. The deal has resulted in an effective 15% increase in Horizon’s daily production, reaching approximately 7,300 barrels of oil equivalent per day. Additionally, net proven-plus-probable reserves have grown by over 20% to 15.35 million barrels of oil equivalent. Horizon now holds nine producing oil and gas fields across five countries.

Strategic Benefits and Near-Term Opportunities

Horizon CEO Richard Beament highlighted that the acquisition delivers immediate gains in production, reserves, and cash flow, while also unlocking operational, commercial, and strategic opportunities across the combined portfolio. He emphasized increased interests in key assets like Maari and Mereenie, where greater ownership offers clear strategic and operational benefits. Near-term opportunities include Mahato infill drilling in onshore Indonesia, Palm Valley appraisal activity in onshore Australia, and commissioning of the Sampang booster compressor offshore Indonesia.

Mereenie Joint Venture and Drilling Program

Both Cue and Horizon were partners in the Mereenie joint venture in the Amadeus basin onshore Australia, operated by compatriot Central Petroleum. However, work on the proposed Mereenie infill drilling program was suspended in April after the joint venture determined that additional near-term drilling was no longer required.

Takeover Offer Details and Shareholder Impact

On March 2, Horizon launched an off-market bid for Cue’s shares at an implied price of A$0.143 (10 US cents) per share, comprising A$0.008 cash and 0.5625 Horizon shares per Cue share. Echelon, previously a major shareholder of Cue Energy, confirmed it has fully exited its Cue shareholding and now holds a 6.64% stake in Horizon’s issued share capital. Echelon had signed a pre-bid agreement on March 2 to sell 19.99% of its holding to Horizon at A$0.115 per share and accepted the off-market takeover offer for its remaining shares. Echelon CEO Andrew Jefferies noted that the transaction crystallizes value from its Cue investment while providing continued exposure to a larger, more diversified regional energy company through its Horizon shareholding. The proceeds also enabled debt reduction, strengthening Echelon’s balance sheet.

Board Reshuffle at Cue Energy

Cue’s board of directors underwent a reshuffle on July 2, with the resignation of Alastair McGregor, Marco Argentieri, Andrew Jefferies, Samuel Kellner, and Rod Ritchie—previously nominated by Echelon Resources. Newly appointed non-executive directors to Cue’s board include Bruce Clement (Horizon chairman), Richard Beament, Gavin Douglas (Horizon chief operating officer), and Kyle Keen (Horizon chief financial officer). Upstream has reached out to both companies for further comment.