• The premium for control implied by the Offer is inadequate
• The timing of the Offer is opportunistic, coinciding with Horizon's share price trading at a 10 year high
• The Offer appears to undervalue Cue relative to Horizon based on objective comparative measures

Cue Energy Resources Limited has issued a Target's Statement in response to the off-market takeover bid made by Horizon Oil Limited to acquire all Cue shares. The Independent Board Committee, comprising independent directors Peter Hood AO, Richard (Ric) Malcolm, and Greg Bishop, has carefully assessed the Offer and unanimously recommends that Cue shareholders REJECT the Offer. The key reasons for the recommendation are: the premium for control implied by the Offer is inadequate; the timing of the Offer is opportunistic, coinciding with Horizon's share price trading at a 10 year high; based on objective comparative measures, the Offer appears to undervalue Cue relative to Horizon; Cue shareholders who accept the Offer would suffer significant dilution of their exposure to Cue's key assets; potential synergies are likely understated by Horizon, and the Offer ascribes minimal value to them; Horizon's debt balance and costs would represent a new material risk for Cue shareholders who accept the Offer; the Offer is highly conditional and there is no certainty that it will proceed; and Cue shareholders will only receive Capital Gains Tax rollover relief on the scrip consideration if Horizon achieves 80% acceptances. The Independent Board Committee encourages Cue shareholders to read the Target's Statement in its entirety and seek independent advice before deciding how to respond to the Offer.