Fortbridge Media Release

Cue Energy Limited [ASX:CUE] - Cue Energy recommends shareholders reject 10 cents per share bid from NZOG

The Board of Cue Energy Limited notes the announcement today from NZOG Offshore Limited of an on-market cash takeover offer for shares NZOG does not own in Cue Energy at 10 cents per share. NZOG acquired a 19.99 percent interest in Cue Energy in late December 2014 and, to effect the takeover offer, has instructed Bell Potter Securities Limited to buy all shares offered to it at the offer price of 10 cents per share from today through to the end of the offer period.

In providing this recommendation, the Board notes the following
* The offer price implies a premium of only 11.1 percent to the closing price of 9 cents per Cue Energy share on 11 February 2015, the last trading day before the announcement of
the takeover bid from NZOG. This is substantially below the premium typically paid in
Australian control transactions

* As at 31 December 2014, Cue Energy has cash reserves of 37 million dollars equivalent to
5 cents per Cue Energy share and zero debt. Cue Energy also has interests in the
producing Maari field in New Zealand and the Oyong and Wortel fields in Indonesia as
well as exploration prospects in Indonesia which provide exposure to an active drilling
programme in 2015

* The offer follows the recent sharp drop in oil prices which has led to material
reductions in the valuations of most oil and gas companies listed both on ASX and
globally

* NZOG has stated that its primary interest in Cue Energy is in due to its interests in
the Maari and Manaia fields in New Zealands Taranaki Basin. Should NZOG gain
control of Cue Energy through this offer, NZOG may cause Cue Energy to change its
priorities for growth and value creation from the Boards current strategy. The Board
believes that such a change in strategy may not be in the best interests of all Cue
Energy shareholders.

For further information please contact

Geoffrey J. King
Chairman
T: (03) 8610 4000
E:

For media and investor inquiries, please contact:

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Bill Kemmery
Tel: +61 400 122 449
Email:

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