Echelon receives A$15.7m from Cue share sale

• Echelon Resources (ASX:ECH) has received about A$15.7 million from selling 139.9 million Cue shares to Horizon Oil.
• Echelon stated the cash will mainly go towards repaying existing debt facilities and strengthening its balance sheet.
• The company said completion of Horizon’s Cue takeover is expected to leave it holding about 6.7% of Horizon shares.

Echelon Resources (ASX:ECH) has received approximately A$15.7 million from settling the sale of 139,885,879 shares in Cue Energy Resources (ASX:CUE) to Horizon Oil (ASX:HZN), under a pre‑bid agreement first announced in March 2026.

The sale forms part of Horizon’s off‑market takeover bid for Cue, which has now closed and left Horizon with a 57.06% relevant interest in Cue following completion of the pre‑bid acquisition and acceptances under its offer.

“Settlement has resulted in Echelon receiving cash proceeds of approximately A$15.7 million,” said Echelon Resources (ASX:ECH) CEO and Managing Director Andrew Jefferies.

Echelon stated that the proceeds from the Cue share sale will predominantly be used to repay its existing debt facilities, with the company saying this will further strengthen its balance sheet ahead of the next phase of its strategy.

The company also reiterated that it has already accepted Horizon’s offer for its remaining Cue stake and expects to receive a mix of Horizon shares and cash, after which it expects to hold about 6.7% of Horizon’s issued capital; following the announcement the Echelon Resources (ASX:ECH) share price was unchanged at its last reported level.

Horizon separately confirmed it has completed the acquisition of Echelon’s Cue holding under the pre‑bid agreement and now controls 57.06% of Cue, and said it plans to work with Cue’s team on current operations and future projects following the offer period.

Echelon describes itself as an Australasia‑focused oil and gas producer with a portfolio of onshore and offshore assets in Australia and New Zealand, and has previously said it is looking for further value‑accretive producing and exploration assets alongside its existing exploration programs.