CUE-> Pantheon of small oil stocks

[Crypto Crude]

strat-15c. Wow, what an offer. Cue hasnt traded above 15c on a regular basis since last year and they want existing share holders to pay 15c for the privilege of diluting the company by 20%.
Are they taking the piss?

strat,
you and others must understand that at any stage of an offer/placement that it only matters what the discount is around the time of closing date (9th July in this case)... which gives a good few weeks before you need to start thinking of taking up the offer....

There is no way on Earth that CUE needs this placement, for Manaia, for Wortel gas development, or any other company development/activity...
CUE is cashflow positive...
and oil is $20 US higher since then...

So why did CUE make a placement?...
I'll take a guess...
CUE are lifting oil, but not selling it to market?... therefore holding an inventory of oil...
39,000 barrels lifted on April 18th...
around 100,000 by the end of this quarter (off current info)...
If CUE has been stockpiling barrels (to take advantage of higher oil prices), then that would be good as oil prices have consistantly risen since April offtake...

would CUE want money to expand?
possible...
But CUE have all the projects at various stages to achieve exponential growth now, next year, and so on for at least the next ten years...


who bloody knows... we are not told much...
I just know that this is the pantheon of small oil stocks...

yeah, some of the guys behind this company are ruthless operators...
but they are very capable oil and gas specialists... A very experienced board that has made some savvy decisions in the past picking up long term PNG assets for next to nothing (which will ride on the coat tails of PNG LNG)/stealing Maari for less than $2 per barrel/picking up NWS permits/ and generally going into partnerships with the big boys...

This is a big time producer with Oyong gas, and Wortel for the given market cap...
and everything else is completely free...
something like 45million barrels of oil 2p BOE all free (from CUE's undeveloped portfolio)...

AWE has 69 million barrels 2P...
CUE have 54 million (BOE) 2P...
billion cap vs million cap...

you are right ELYOB...
MEO is probably going to announce a farmin partner NWS in July...
giving us another future 1.5 TCF target free carry...

In 5 years Oil Search will be a $20 stock (minimum)...
PNG LNG...

good close to the week..
16cents...
humm...
a long long way to go for us to be trading at fair value...
im absolutely adament about this one...
upside, I will reply to that post soon...

.^sc

[corporateraider]

[QUOTE=Shrewd Crude;260719]strat,


who bloody knows... we are not told much...
I just know that this is the pantheon of small oil stocks...

Absolutely right Shrewdie- we are not told much and yet the company has an obligation to continuous disclosure. I am inclined to refer this matter to the ASX particularly as recent anouncements have had a smell of bacon about them. But I also expect that such an action would be as effective as telling a duck to avoid the airways during May.

My worry about the company's seemingly apparent cavalier attitude to investors is that this might ultimately reflect in the poor performance of the share price. I guess we all remember Contact Energy director's disdainful attitude that cost them a large number of customers and a drop in the share price.

I am interested to know where you think the company may be storing the oil? They haven't stored it back down the hole have they?

Like you I have liked the Cue story for a very long time, but I am getting very frustrated that as we seem to be building towards the climax there are so many pages missing.

[soulman]

Technically, I see CUE at about 20 cents in about 3 weeks time or even that in the next few days.

[macduffy]

My worry about the company's seemingly apparent cavalier attitude to investors is that this might ultimately reflect in the poor performance of the share price. I guess we all remember Contact Energy director's disdainful attitude that cost them a large number of customers and a drop in the share price.

QUOTE.

I don't think we can draw comparison between Contact's experience and CUE's apparent attitude to investors.
In Contact's case, retail customers are vital to their success; CUE on the other hand will be judged by their success or otherwise with the drill.
I still have a strong suspicion that CUE aren't particularly concerned about a strong uptake from retail investors. Todds are the dominant force here and I assume that Singapore Petroleum will also want to maintain or increase their interest.

[STRAT]

Technically, I see CUE at about 20 cents in about 3 weeks time or even that in the next few days.

I know there are a few holders getting restless but the chart doesnt look that bad. Im looking for a sustained close above 16c and this looks more possible than it has done has for a while. Not sure how you came up with 20 in 3 weeks Soulman but I would be happy with that.

( haha everytime I read your nic I hear James Brown in my head )

[ELYOB]

I think there is something going on and we are about to find out in the next two[2] weeks . Me thinks of a number of theories , but am certain it is expansionary . There was no need for this current Issue .........I am making a call ?

Disclosure : "large" holder of CUE longterm

[JBmurc]

Wow glad I left my 16c sell order in place after buying in at 12.5c sold most just the other day might try using the ava. funds to buy back in at 14c

[colinm_au]

Management are obviously not representing the interests of all shareholders ... or keeping the market informed

The flow of information from the company to investors has been appalling recently. What is the state of Maari drilling ? What production rates are being achieved ? Have reserves been upgraded as per HZN ?
One month we are told NO capital raising is required and the company has enough funding to meet it's financial obligations and the next that we need a major capital raising !!!

Why not offer the issue at a discount ?
Why a non-renounceable issue ?
What funds (beyond the current revolving credit facility) will be required for Wortel ?
Will a prospectus be issued to enable investors to make an informed decision about whether to take up the offer ?

This offer is likely to ONLY achieve the following:

Enable Todd and SPC to increase their grip on CUE's fantastic assets for next to nothing as retail investors have little incentive to take up the offer and as a result are diluted by 20%. The low price relative to recent issues means that Investors wishing to lower their cost base for Capital Gains Tax purposes (Aust) will keep pressure on the share price by selling enough shares to take up the offer.

I am a TOP20 shareholder (both directly and indirectly) and will be looking at lodging a complaint with both company management and ASX over several recent matters.

I urge all shareholders to take similiar action and to have a long memory and vote against the re-election of any of the current directors in the future.

Given the size of the issue I believe that shareholder approval should be required ... Enough is enough !!!

[geezy]

sorry to ask this in a wrong thread but what is the capital gains tax rate in aus and how are we taxed?


cheers if any type of help is given !

btw go cue!

[tricha]

[quote=colinm_au;261155]Management are obviously not representing the interests of all shareholders ... or keeping the market informed

quote]

WELL, not that I hold any today, but their web site is below average and without going into their reports, what is the share makeup ?
Actually this reminds me of PPP whereby thee shareholders have to go along for the ride, in the cupboard. Hee, hee.

I suppose just like the people of Iran
THE CUE BOARD AND MANAGEMENT TEAM

Richard G. Tweedie
Chairman
Mr Tweedie is the Managing Director of Todd Energy Limited of New Zealand. Todd Energy Limited is involved in oil and gas exploration and production (Maui and Kapuni fields), gas wholesaling and retailing, electricity generation and the sale of electricity. Todd is also a coal producer. Mr Tweedie holds a number of directorships and is a member of the New Zealand Business Roundtable. Mr Tweedie is a law graduate of the Victoria University of Wellington, New Zealand.