well that gas won't feature in the sept 1/4 results. Wonder what the cash flow effect is - are there on going costs and how much per week is Oyang gas worth in AU $.
STATE-OWNED oil giant PetroChina has become a major shareholder in Melbourne oil and gas producer Cue Energy Resources through its $US2.2 billion acquisition of Singapore Petroleum.
Singapore Petroleum owned 16.31 per cent of Cue, which has now been transferred to PetroChina in another transaction that will test the Foreign Investment Review Board's policy towards China.
FIRB executive director Patrick Colmer told a recent China investment forum in Sydney that the Australian government preferred foreign stakes in major Australian producers to remain below 15 per cent.
While Cue is not a major producer, the 16.31 per cent stake gives PetroChina an interest in an Australian oil and gas producer above the 15 per cent level the FIRB views as substantial.
There has been no mention from PetroChina or Singapore Petroleum about whether any facet of the deal requires FIRB approval or whether FIRB has been approached.
Cue chief executive Robert Coppin said neither party had mentioned FIRB approval to the company.
"Clearly they have exceeded the 15 per cent level," Mr Coppin said yesterday.
He said Singapore Petroleum exceeded that level on the basis of a recent rights issue.
Cue had not been made aware of what PetroChina intended to do with the stake, he added.
The FIRB spokesman in the Treasury Department could not be contacted yesterday.
As well as its stake in Cue, PetroChina has also acquired Singapore Petroleum's 35 per cent interest in a Bass Strait oil and gas plot operated by Tap Oil.
This is less likely to arouse FIRB concerns, remaining within its stated preference for foreign investors to keep their stake in undeveloped resources below 50 per cent.
PetroChina's stake in Cue is worth $29million at Cue's current share price, which was unchanged at 26c yesterday.
Anyone else feeling the frustration I am with the CUE SP. It has been a good investment this year but getting some SP action is like trying to get a 17yo dog off the couch.
yep! hard to find a better story but if it wont translate to SP i can find another home for my investment. JB seems to have a lot to say this morning (making up for lost time) maybe he has some thoughts?
Anyone else feeling the frustration I am with the CUE SP. It has been a good investment this year but getting some SP action is like trying to get a 17yo dog off the couch.
I'm only frustrated I didn't buy 1mill CUE @ 10c
Current 26c-27c ins't to bad IMHO even though it's still cheap sub 35c
Could well see petrochina buy more
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
By my calculations if the FIRB rule that petrochina can only hold 15% of CUE this would force them to sell approx 9 million shares (1.31%).
That said, I think this is unlikely, given they allowed Singapore Petroleum to hold 16.31% and CUE is not a major oil producer but, its still a possibility!
Will be interesting to see what happens. Any thoughts???
Practically a nil chance that the FIRB won't approve this IMO. They are already under some criticism for appearing to adopt a harder line with the Chinese than with other applicants and won't see any reason to make an issue of this minor matter.
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