Ann: Appendix 3Y, page-4

My prediction is that NZO will be lining up for a takeover offer. Basis of this prediction:
1) They are selling off their cash cow, Kupe, for a good sum (and potentially Tui!) and need to replace income generating assets with assets such as Maari, Oyong & Wortel.
2) Cue has low risk upside exploration potential (Indonesia) aswell as the company maker (NW shelf).
3) Cue is cheap for NZO, considering they already control them, and have the funds for any NW self commitment should they arise without having to dilute further.
4) NZO would enjoy a lot of cost synergies through admin reduction, which even after the latest CUE presentation I consider too high going forward. This alone on an NPV basis would pay for NZO's acquisition of the remaining shares they don't own.
5) Oil price has stabilised, making it acceptably low in risk for the board after years of shareholder funds erosion.

It may not happen in the short term, but at the same time I wouldn't be surprised if it does shortly.

Disc: Have put in an opportunistic sell order...