New float by Cue

Press, 27 June 1983, Page 24

New float by Cue

PA Auckland A new oil prospecting float, Petro Taranaki NL, is being launched by Cue Energy Resources, NL to take advantage of the high public interest in oil exploration. About ?5m will be raised in a public share issue during August — just a fewweeks before Cue’s major prospect licence area 38114 south of the Maui gas filled is due to be drilled.

About 40 per cent of the issue will be made to Cue share and option holders by way of a preferential nonrenounceable entitlement at a ratio of one 25c Petro Taranaki share for every four Cue shares, and one Petro Taranaki share for every eight Cue Options. The Cue directors said that they had negotiated with four oil exploration companies, Cultus Pacific Nl, York Resources, NL, Tri-Arc Energy, Ltd, and Barrick Petroluem Corporation whereby Petro Taranaki will acquire a 6.4 per cent net participating interest in the highly prospective licence area 38114. Cue itself holds a 5.1 per cent interest in this area, and in sponsoring the new company, it will be offering both existing Cue share and option holders and the public at large the opportunity of gaining an increased holding in the Moki 1 well. Participation in the Moki 1 well is estimated to cost Petro Taranaki ?2M by the time the Benreoch rig has drilled to and tested the reservior structure. The remaining S3M of capital will be used to fund the company’s interest in a further exploration in the 38114 area, and to farm into other exploration wells in the Taranaki Basin at present being offered by other

petroleum exploration companies. The 38114 licence area is directly south of the Maui gas field and close to the Maui 4 exploration well which was drilled by the Shell-BP-Todd group during 1970. The well flowed at the rate by 575 barrels of oil a day but was deemed to be uncommercial at the time because of low oil prices. Ticentrol Exploration is the operator for the 38114 Consortium; it is a subsidiary of Tricentrol Oil Corporation, a British company listed on the London and New York stock exchanges. It has significant interests in the North Sea Thistle Field. Various drilling targets have been identified and the consortium has programme commitments to drill the Moki 1 well in September, and one other before the end of 1984. The Moki 1 well will explore the most prospective reservoir feature, between the Maui 4 well and the Maui gas field. The new issue will comprise 20,000,000 shares payable to 25c each, and 10,000,000 attached options. It will be underwritten and application will be made for Stock Exchange listing. Onethird of the subscription amount will be tax deductible for individual subscribers.