Ann: GAS SUPPLY AGREEMENT WITH INCITEC PIVOT, page-11

Hey @Sharetrader78, good question, what's the plan? Even better what's OG's plan? They had a plan in 2017-2019 when OG made an initial partial, followed by a complete, takeover offer for NZO. Had that been successful NZO would have been privatized, followed by CUE takeover and privatization.

The NZO full takeover was blocked by the 30% minority SH's with the end result being that OG, NZO and CUE have been in a 5 year standoff. While OG has control Petrochina, NZO minorities and CUE minorities all have the ability to block any opportunistic bids.

The other big issue that doesn't get the attention it should is that OG is also frustrated. Instead of driving forward off the takeover and privatization of NZO and CUE and rolling that in with their investment in the Otway basin, OG has been stuck with majority investments in two underperforming small caps. Even worse, under this structure, neither CUE nor NZO can create liquidity in their stocks and has no hope of attracting meaningful new investors.

So does the lack of liquidity, stagnant SP and inability to raise funds bother OG? In the short term no but it limits growth to smaller, ad hoc acquisitions and organic growth. (such as Amadeus and the farm in with TEG) While it moves NZO/CUE forward it is a painfully slow process.

Logically rolling NZO and CUE into one larger entity has merit. It would remove the joint ownership of assets, reduce OG and Petrochina's majority positions (while still leaving OG as majority) and significantly increase the free float of shares. It would create an entity with a market cap of of $120m+, a more diversified share register and potentially become more attractive to institutional investment. In short it would be a vehicle which would allow OG to supercharge its growth in the Asia Pacific O&G space.

The problem with any moves to consolidate NZO/CUE is that without the support of NZO minorities, Petrochina and CUE minorities it can't be achieved. Any of these groups could veto any change. Some SH's will want scrip, some SH's want a payout. Given the rapidly building cash positions of NZO and CUE OG can finally turn their minds to what could be. The challenge for them is to arrive at a proposal and a price that satisfies everyone