Fletcher Energy Seeks Resolution of Petroz Funding

STOCK EXCHANGE LISTINGS: NEW ZEALAND (FEG), AUSTRALIA (FLCES), NEW YORK (FEG).

Fletcher Challenge Energy
Seeks Resolution of Petroz Funding Needs

AUCKLAND, 6 October 2000 – Fletcher Challenge Energy today expressed its disappointment at the decision by shareholders of Petroz NL to reject the proposed alliance between the two companies. The proposal would have seen Fletcher Challenge Energy take a cornerstone shareholding in Petroz, ensuring there were adequate funds available to meet the forthcoming capital calls for the development of the Bayu Undan project. Through an option exercised earlier this week, Fletcher Challenge Energy holds 13.04 per cent of Petroz NL.

Greig Gailey, Chief Executive Officer of Fletcher Challenge Energy, explained the rationale of the proposed alliance, saying “This arrangement was a firm proposal to enable Petroz to take advantage of Fletcher Challenge Energy’s financial and technical strengths, and to meet the forward funding demands for the successful development of Bayu Undan.”

The funding requirement must be addressed if Petroz shareholders are to participate in the development of this field. As a major shareholder in Petroz, Fletcher Challenge Energy is keenly interested in how this problem will now be resolved.

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