Both Cue Energy (ASX: CUE) and New Zealand Oil and Gas (ASX: NZO) are related entities of the Monaco based private company OG Energy. Its owner has a personal wealth of over US$10bn, and a well publicised strategy on building oil and gas assets in Australasia:
In 2017, O.G. Oil & Gas made a takeover offer for a majority stake in New Zealand Oil & Gas
In 2018, O.G. Energy paid $344 million in cash for a 40 per cent JV stake in Beach Energy’s Otway Basin assets in Victoria
At the end of the March quarter NZO has AU$75m in cash and publicly states on its website "New Zealand Oil & Gas is looking to grow regionally through acquiring high quality assets, using our well-developed expertise in oil and gas and leveraging the capabilities of the wider (Olfer Global) group"
OG Energy will be doubling down after the failure of its JV with BP's Ironbark well in late 2020, the British major's first testing for a large oil or gas find in Australia in more than a decade. BP (42.5%), Cue (21.5%), Beach Energy (21%) and New Zealand Oil & Gas (15%) drilled a record 5.6 kilometre well about 170 kilometres off Karratha WA, targeting 15 trillion cubic feet of gas.
Think this demonstrates the size and risk appetite of our farm-in partners, and the technical expertise LD was looking for in the partnership.
GLTAH
CTP Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
