Contender for Cue chucks in the towel

Friday 6th July 2001

By Nick Stride

Cue Energy's controlling shareholder has taken to its heels, leaving opponents to carve up a potentially lucrative oil find.

After 18 months of legal dispute Australian lawyer Leon Musca's Palmcove Asset Pty has sold down its Cue holding from 30% to less than 1%.

Cue reported on June 1 it had encountered hydrocarbons - that is, found some oil and gas, though not necessarily in commercial proportions - at its Oyong-1 prospect offshore East Java.

It has since reported only how much rock it has drilled through.

In recent days there has been heavy turnover in the shares.

Most significant has been Palmcove's selldown. Palmcove and Mr Musca have been embroiled in legal action with Browse Petroleum, the vehicle of former Cue director Geoffrey Albers, Todd Energy, and Western Australia's Anzoil.

Mr Albers yesterday confirmed he had lifted his Cue holding from 3.5% to 13.31%.

He said his purchases had been made on-market and he didn't know who the sellers were.

Todd has also raised its stake, from 5.6% to 9.93%.

Anzoil's last disclosed Cue position was 7.2%. On June 8 it filed a notice that it intended to buy, off-market, up to 118 million Cue shares, or 35% of the company. That offer hasn't been heard of since and, since July 1, the purchase of such a large stake has been subject to the provisions of the Takeovers Code.

The identity of another major Cue shareholder remains mysterious. Citicorp Nominees holds 28.2 million shares, or 8.7%, as a result of an issue authorised by the Leon Musca-dominated board at a price of 4Ac a share.

The recent transactions have been at 4.5Ac to 5Ac a share.

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