Horizon has announced the completion of its off-market takeover of Cue Energy Resources, resulting in Horizon acquiring a controlling interest of 57.03% in Cue. The acquisition substantially expands Horizon’s production and reserves base, increases the scale and diversity of its asset portfolio, and creates a stronger platform for future growth and value creation for both Horizon and Cue shareholders. The acquisition delivers an effective 15% increase in Horizon’s daily production to approximately 7,300 boepd(1) , increases Horizon’s net 2P reserves by more than 20% to approximately 15.35 mmboe(2), and expands Horizon’s geographic footprint to nine producing oil and gas fields across five countries.
Horizon announced on 2 March 2026 that it had entered into a pre-bid agreement with Echelon Offshore in respect of Echelon’s 139,885,879 fully paid ordinary shares in Cue Energy Resources and had launched an off-market takeover offer for Cue pursuant to the replacement bidder’s statement dated 19 March 2026, as supplemented. The pre-bid agreement was completed on 26 June 2026, resulting in the acquisition of a 19.90% shareholding in Cue for a net cash payment of approximately AUD 15.7 million, after taking into account Cue’s FY26 interim dividend of 0.25 Australian cents per share.
On 2 July 2026, Horizon completed its off-market takeover and acquired a further 37.13% interest in Cue through the issue of 146,890,089 new Horizon shares and a cash payment of approximately AUD 2.1 million. Following the completion of both transactions, Horizon’s shareholding in Cue is now 57.03%, providing a strategic controlling interest in the company and an effective interest in six cash generative producing oil and gas assets located across Indonesia, Australia and New Zealand.
Following completion of the acquisition, Horizon nominated Bruce Clement (Horizon Chairman), Richard Beament (Horizon Managing Director and Chief Executive Officer), Gavin Douglas (Horizon Chief Operating Officer) and Kyle Keen (Horizon Chief Financial Officer) to the Cue Board, who were appointed on 2 July 2026. The five directors previously nominated by Echelon have resigned from the Cue Board.
Over the four months since the transaction was announced, Cue has benefited from a stronger oil price environment, supporting its balance sheet and financial position. As disclosed in Cue’s Supplementary Target’s Statement dated 11 June 2026, Cue held an unaudited cash balance of approximately AUD 16 million at 30 May 2026 and had no debt. As a result, Horizon is acquiring a controlling interest and consolidating a well-funded business with a strong platform for future growth.
A summary of the cash consideration paid for the acquisition, in addition to the 146,890,089 Horizon shares issued to accepting Cue shareholders under the off-market takeover, is set out below:
Funding for the cash component of the pre-bid acquisition and off-market takeover was primarily sourced from existing cash reserves and drawings under Horizon’s existing Macquarie Bank debt facility, which was increased by a further US$10 million following completion of the Thailand acquisition in August 2025.
This funding structure, together with the expected free cash flow contribution from Cue’s producing assets, supports the continuation of Horizon’s distribution strategy while preserving financial flexibility.
CUE ACQUISITION HIGHLIGHTS
The acquisition provides Horizon with a complementary and diversified portfolio of cash-generative oil and gas assets that required only a modest deployment of cash reserves. It expands Horizon’s production base, reserves and geographic footprint across South East Asia and Australasia, strengthens the Company’s cash flow profile, and creates additional opportunities for operational and commercial value creation across the combined portfolio, as outlined below.
The transaction provides Horizon with the following:
• Immediate reserves growth: Acquisition of approximately 2.85 MMboe(1) of net 2P reserves (effective 30 June 2025), representing a material addition to Horizon’s pro forma net 2P reserves of 12.5 MMboe as at that date.
• Cash-generative production: Stable and predictable oil and gas production of approximately 1,000 boe/d(2) net to Horizon at current production rates, providing an immediate contribution to operating cash flow.
• Complementary and diversified asset portfolio: Cue’s interest in the Maari/Manaia field in New Zealand complements Horizon’s existing position, increasing its effective ownership in a high-quality producing asset. In Australia, Cue’s interests in the Mereenie, Palm Valley and Dingo fields increase Horizon’s exposure to strategically important domestic gas assets. The combined portfolio now comprises producing assets across Thailand, China, Australia, New Zealand and Indonesia, significantly expanding Horizon’s regional footprint and diversification.
• Increased scale and financial resilience: The enlarged group benefits from greater production, reserves and cash flow, creating opportunities for operational synergies, improved cost efficiency and enhanced financial flexibility. The broader asset base strengthens Horizon’s ability to pursue growth opportunities and navigate commodity price cycles, supporting long-term value creation for shareholders.
• Multiple value-accretion opportunities: The combined portfolio offers a range of opportunities to enhance value through infill drilling, facility upgrades, production optimisation and resource maturation. Near-term growth initiatives include Mahato infill drilling, Palm Valley appraisal activity and commissioning of the Sampang booster compressor, together with a broader pipeline of development and optimisation opportunities across the portfolio.
Horizon CEO Richard Beament commented:
'We are delighted to complete the acquisition of a controlling interest in Cue and to officially welcome Cue’s shareholders and employees to Horizon. This transaction materially increases our scale, strengthens and diversifies our asset portfolio, and broadens our operations across five countries, creating a larger and more resilient business.
The acquisition delivers an immediate increase in production, reserves and cash flow, while also providing a range of operational, commercial and strategic opportunities across the combined portfolio. We believe all shareholders, including those joining us from Cue as well as current Cue shareholders, will benefit from the enhanced scale of the business and the value creation opportunities that come from bringing these complementary businesses together.
The transaction is expected to support stronger free cash flow generation, underpinning our ability to maintain an attractive dividend while preserving balance sheet strength and financial flexibility. We are particularly pleased to increase our interests in key assets such as Maari and Mereenie, where greater ownership provides clear strategic and operational benefits.
We look forward to working closely with Cue’s employees, shareholders and stakeholders as we begin the next phase of growth for the combined group. Our immediate focus is on achieving a smooth transition and integration, while positioning the business to realise the full value of its expanded portfolio and deliver sustainable long-term returns for all shareholders.'
(1) Horizon’s share of Cue’s production is calculated based on Horizon’s controlling interest (57.03%) in Cue as at 3 July 2026
(2) Combined Horizon and Horizon’s share of Cue reserves, resources and production at 30 June 2025, including Thailand on a pro forma basis. Horizon’s share of Cue’s reserves, resources and production is calculated based on Horizon’s controlling interest (57.03%) in Cue as at 3 July 2026
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Source: Horizon
