- Cue Energy (CUE) enters a $7 million, two-year unsecured loan agreement with New Zealand Oil & Gas (NZO)
- The agreement was entered to support Cue’s exploration and development activities as well as ensure sufficient working capital
- Cue will carry out exploration at its Amadeus Basin, Mahato PSC and Sampang PSC production assets with work already underway
- The loan has an interest rate of 10 per cent per annum and a 1.5 per cent establishment fee of the loan amount
- CUE shares have ended the day up 1.47 per cent at 6.9 cents and NZO shares have ended the day flat at 41 cents
Cue Energy (CUE) has entered a $7 million, two-year unsecured loan agreement with New Zealand Oil & Gas (NZO).
The agreement was entered to support Cue’s exploration and development activities as well as ensure sufficient working capital.
Cue will carry out exploration at its Amadeus Basin, Mahato PSC and Sampang PSC production assets with work already underway. Over the next 12 to 24 months, Cue will aim to increase oil and gas production.
The loan has an interest rate of 10 per cent per annum and a 1.5 per cent establishment fee of the loan amount.
As New Zealand Oil & Gas is a related party of Cue and holds 50.04 per cent of the shares, an independent board committee was appointed to review and approve the terms of the loan.
“Cue has a number of exciting exploration and development projects within our portfolio, which are all aimed at increasing our oil and gas production,” CEO Matthew Boyall said.
“This loan will ensure Cue retains the financial strength to participate in not only our committed projects but any other proposals which arise to increase production at our assets.
“The terms of the loan are structured to provide flexibility for the loan amount to be reduced as outcomes of individual projects become clearer.”
CUE shares were up 1.47 per cent to trade at 6.9 cents at market close. NZO shares ended the day trading flat at 41 cents.