4 new directors, page-2

Alien,

Thanks for drawing this exciting news to our attention. These are usually such boring notices that I generally don't peruse until they come in the mail, but this, this is very exciting.

I've long speculated (in my head, probably not here) that Todd had a vision for CUE to be their investment vehicle for oil and gas outside of NZ. Seems here that they are declaring this, and strongly supporting it with internal and external people, and these are not the usual breed of director who has had spells at ASX oiler X,Y&Z. As you say Alien, these folk have calibre, they've held senior roles in successful serious oil and gas, at Woodside, Esso, Santos, Todd and the sadly given to Shell Fletcher Energy. Quite a diversity of experience and base skills offered too.

Our three man board was never going to cut it for the next level, and misjudgements could occur too easy. Too easy for a single director not skilled in the subject to lend support to a fellow director with a maverick or half baked idea, or just with a forceful opinion. Much more comfortable with 5 or 7.

Interesting that it is Todd promoting the expansion, and the existing board (while not rejecting it) not embracing or endorsing it. Might indicate someone is quite attached to the influence they have on a 3 man board. All the more reason to enlarge it.

I will support most if not all these appointments, but you guys are probably more interested in what SPC will do, as they have slightly more votes than I do. I can't see any harm in continuing the ride with more of Todd's vision and drive behind us. Always seen Todd as our protection from ASX Oiler Syndrome. Todd are in the game to build wealth, not to fund director lifestyles. More assurance that investment decisions will be disciplined.

We might however have to accept Todd increasing their stake down the track, when there is a big CR/rights issue for a transformational investment, and some of you folk fail to take up your rights. Could be for an acquisition, could be for development upon exploration success. It's clearly signalled in the AR that there will be less farming down of interests in future, and greater frequency of drills. Our $50mm doesn't fund much in O&G.

EL