CUE-> Pantheon of small oil stocks

[Corporate]

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 !!!

It does seem very BAD that we haven't heard anything about the progress with the water injection wells.

The capital raising is a kick in the face to shareholders - why say that there was no need for additional funding?

At least a raising at 15c should mean a base for the share price and that the shares go into long term hands instead of getting dumped on the market straight away.

[macduffy]

CUE have a long history of:

- domination by its biggest shareholder.

- issues at market price.

- such issues being non-renounceable.

- less "investor friendly" than most similarly sized companies - OK that's just my perception.

But I've reckoned for some time that CUE doesn't particularly care whether or not minority shareholders subscribe to these issues. The only thing that's changed in the last year or so is that CUE now has two dominant shareholders with the arrival on the scene of Singapore Petroleum.

[colinm_au]

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

CGT in Australia is at the investors marginal tax rate unless the shares have been held for more than 12 months in which case a 50% discount applies to the gain. note: this rate applies to individuals who are not classed as traders.

Different tax rates and discounts apply to companies, trusts etc.

[macduffy]

Note that the timing of the new issue is going to be pretty tight, particularly for those of us relying on trans-Tasman mailings.
Entitlements aren't due to be despatched until 25 June. The issue closes on 9 July.
Not unusual for these issues to be "accelerated" but those taking up might want to investigate the BPay option if this is offered and you have the necessary electronic bank arrangements. I've used it a couple of times and it worked well.

[STRAT]

Note that the timing of the new issue is going to be pretty tight, particularly for those of us relying on trans-Tasman mailings.
Entitlements aren't due to be despatched until 25 June. The issue closes on 9 July.
Not unusual for these issues to be "accelerated" but those taking up might want to investigate the BPay option if this is offered and you have the necessary electronic bank arrangements. I've used it a couple of times and it worked well.

Why would anyone though Macduffy? You can buy em today for less

[macduffy]

Why would anyone though Macduffy? You can buy em today for less

True, but anything can happen in the short intervening period.
Oh, and no brokerage on the issue , but that's a minor consideration.
I'll be waiting until the last minute if there's a BPay option offered.

[upside_umop]

I took the opportunity to buy some more today...opps!

Quite a lot of buyers creeping up at 14.5 and I'm thinking management will get the sp above 15 cents comfortably by closing date.

*Maari update will well rewarded...

*Manaia drilling coming up..

*Oyong gas coming online late next quarter (Septemberish)

*Wortel development starting after Oyong..due online next year.

A diversified revenue base isnt far away, this is cheap.

Phaedrus, is it possible for you to do a chart on CUE? I've noticed my data source I was using doesnt do 0.5 cent movements in the sp and therefore am getting a few false signals!

[Crypto Crude]

upside umop-shrewdy buddy, do you know what gas prices will be achieved in indonesia re oyong?

or have any estimates been giving on revenues/opex per year?

Upside...
I have seen, and worked through various estimates re Oyong Gas, but im afraid nothing is offical... I dont even really know what gas sales contract prices are.... We can make general assumptions on revenues, and opex is harder again....
I have not personally sat down and worked through a spreadsheet, because I knew a long time back, that our revenue streams are going to be big... and all our costs will be taken care of...on the risks side of things, I generally felt that risks would fall back on our great 'big boy' partners, meaning that the market shouldnt need to discount the stock so freaking much on its production stage risk...

Oyong gas Will flow 5 times OEL's Turkey gas...
7.5 MMCF per day to CUE...
7,500,000cf/1000cf * $5=$37500 per day...
say one month per year of no production...
then $12.4 million per year, for the long term...
double that with Wortel...

existing production, and add in Maari (production costs around $25 Per barrel), and manaia... then we are sailing up to 25c on production stage activities alone...
and thats without PNG, Cash Maple...

I thought in todays presentation, that the projections of BOE/day from Barikewa, Cash Maple, was very conservative...

My only concern is if CUE shareholders do not take up the placement... We lose our rights to 15c shares, which could then be taken up by the Todd's... with them buying those shares how far down the line?

stock looks downside protected with a big buyer at 14.5 cents...
One of the most important announcements/updates from the Maari JV is due....This will take off if production rates, offtake, sales, water injectors, and timing of activities come in as was planned...
so much is need to be disclosed..

We need an announcement before the market will do anything either way...
Some have got cold feet... I thought the big delay in announcements could have been a small niggle with water injectors...
I will wait, because it is only time before OMV, Todds, fix a problem that this complicated industry could throw at them...

mate...
I still cant let go of how excited I am for this stock...
information is still the same...
it has not changed... but the share price halved...

info still telling me that this is worth 25c basement, 45c valuing some PNG and Cash Maple... and zero value added for Exploration targets, and some juicy appriasal targets with Maari upgrades to come.....

This company is Maari, and everything else is free...
I will quickly make one more reply...

.^sc

[Crypto Crude]

corporateraider-
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?

what I said was only a theory...
I mean why else would CUE want to raise money they dont really need?
It is one of a few possible ideas...
CUE would not be physically storing oil, The Todds are selling it directly to East Coast Aussie Refineries...
It is not in CUEs nature to get into financial instruments eg Futures contracts, or hedging...
The settlement date of any oil sales would be in the contracts that the Todds have with those East Coast Refineries...

.^sc

[colinm_au]

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