Second Supplementary Bidder's Statement

• Horizon has reached 50.46% ownership of Cue, fulfilling the 50.1% minimum acceptance condition
• No superior proposal has emerged, and Horizon considers the likelihood of an alternative bidder low
• Regulatory approvals and other updates provided

Horizon Oil Limited has provided a second supplementary bidder's statement for its off-market takeover bid for all of the ordinary shares in Cue Energy Resources Limited that Horizon did not already own. The key points are:- Horizon's largest shareholder, Echelon Offshore Limited, has now accepted the offer for all of its Cue shares, other than those subject to a pre-bid agreement. This, combined with other acceptances, means Horizon has a relevant interest in 50.46% of Cue shares, fulfilling the 50.1% minimum acceptance condition.- Horizon is not aware of any potential competing or superior proposal, and considers the likelihood of an alternative bidder emerging to be low, given Horizon's current 51.42% voting power in Cue.- Horizon has continued to progress the necessary regulatory approvals in New Zealand and the Northern Territory, and will provide further updates on material developments.- Other updates include the expiry of a letter of intent with the Northern Territory's Power and Water Corporation regarding gas sales from the Mereenie joint venture, and the conclusion of a Takeovers Panel application by Cue.- Horizon encourages Cue shareholders to consider the information provided and accept the offer.