Need for Capital Raising ...
I received a call from Andrew Knox the CFO after lodging a complaint with the ASX ...
After making him aware of my frustration at several aspects of the rights issue and the companies poor record in keeping shareholders updated on the recent progress of projects ... I asked why the issue was needed just a month after the company had stated to the ASX it had no plans for an issue ...
"The company is performing very well"
"The oil & gas industry is a rapidly changing business ... with opportunities arising that may require funding"
From my conversation with Andrew I surmise that an opportunity has arisen ...
Given that Santos appears to be disposing of non LNG assets in PNG, It is easy to believe that CUE may have the (pre-emptive) opportunity to acquire the PDL3 interest of STO (15.92%) increasing their holding from 5.57% to 21.5%
Given the current low oil price this could be a nice time to increase CUE's holding in PDL3