As I highlighted in last year’s report, the Board prioritised early debt repayment, and Cue successfully repaid $4 million in the first half of the year as part of our Capital Management program. We also determined that the company’s strong and stable cash flow position warranted the initiation of a dividend strategy. The announcement of the H1FY2024 special dividend of 2 cents per share resulted in a $14 million return to shareholders, attracted new investors, and subsequently increased the share price by over 60%, a level that has been sustained. At the same time, we introduced a dividend policy to reflect the Board’s intent for Cue to establish long term sustainable returns to shareholders. Due to the size of the company and the non-operated nature of our assets, it is not practical to commit to a fixed payout ratio, but our commitment is to review the financial position of the company every six months with the aim of providing sustainable returns to shareholder. The final dividend of 1 cent per share announced in our FY2024 results means that we will return a total of $21 million to shareholders during the year. Monitoring and managing changes in the regulatory landscape where we operate remains a critical aspect of our business management. The ACCC Gas Mandatory Code of Conduct has become integral to our operations, with the exemption from the price cap continuing to apply to Cue as a small producer. I believe that addressing the supply shortage is a more effective approach than regulatory interference in solving the gas supply issue. In New Zealand, a change in government during the year has altered the political stance on oil and gas production in the country. A review has been announced into the financial assurance laws and regulations enacted by the previous government. This review could confirm the requirement for decommissioning funding at our Maari field, however we await the outcome of this review. Looking ahead for FY2025, we expect our production assets to continue to perform and grow. Three out of Cue’s four production areas have growth activities either underway or planned. In the Mahato PSC, we have commenced drilling new oil production wells as part of an approved Field Development Optimisation. Fourteen wells are planned and drilling is expected to continue for the next 12 to 18 months. We have also announced a two-well gas development program in the Mereenie field, likely to commence December or early 2025, and the Sampang JV is working diligently to lay the groundwork for a final investment decision on the Paus Biru gas development. I want to thank our shareholders for their continued support and to our team for their ongoing dedication. Together, we are well-positioned to navigate any challenges ahead and capitalise on the opportunities in the evolving energy landscape. Alastair McGregor Chairman 3 Cue Energy Resources Limited Annual Report 2024
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