New Zealand Oil & Gas has gained three directors on an expanded board at Cue Energy Resources after securing 48 percent of the ASX-listed energy company.
Cue said Paul Foley, a former NZOG director and current partner at law firm at Minter Ellison Rudd Watts, oil and gas industry consultant Peter Hazledine and Sydney-based lawyer Brian Smith will join Geoffrey King, who remains chairman, Stuart Brown and Andrew Young on the board. Rowena Sylvester resigned from the board.
NZOG made a hostile takeover bid for Cue at 10 Australian cents a share after buying 19.99 percent of the company in December from Todd Energy and has then picked up further stakes from shareholders including Todd and Zeta Resources. Cue owns 5 percent of the Maari oil and gas field, offshore Taranaki, adjacent to the Tui field, where NZOG has a 27.5 percent interest. Cue also has an interest in the nearby Manaia prospect.
The Wellington-based oil and gas company has said it plans to carry out a strategic review "on Cue's corporate structure, governance, assets, businesses, personnel and operations with a view to identifying potential areas where Cue's business can be enhanced." That review will consider whether continued listing on the ASX "constitutes value for money."
NZOG shares last traded at 58 cents and have declined 22 percent in the past 12 months. It is rated a 'buy' based on three analyst recommendations compiled by Reuters. Cue last traded at 8.8 Australian cents, has dropped 30 percent in the past 12 months, and is rated a 'strong buy' by two analysts.