Peak Increases Offer To USD$3.85

PEAK PETROLEUM

Media statement – March 2, 2001

PEAK INCREASES OFFER TO US $3.85

Peak Petroleum today increased the cash component of its offer for Fletcher Energy to US $3.85 per share.

This tops the revised offer of $3.55 announced by Shell yesterday.

As part of the increased offer, Penn West Petroleum has increased its offer for the Canada and Argentina assets of Fletcher Energy by US $12.5 million to US $737.5 million.

Peak and Greymouth Petroleum chairman Mark Dunphy said that the revised offer is a minimum figure and is subject to a review of Fletcher’s books.

Mr Dunphy again appealed to Fletcher Challenge directors to recognise reality and postpone next week’s shareholder meeting.

“This would enable shareholders to benefit from the obvious competition emerging in the market place.”

Overall the new Peak offer is more than US $105million (NZ $245million) or US $0.30 per share (NZ $0.70 per share) higher than the revised Shell offer.

“Fletcher Challenge must immediately allow Peak to commence due diligence so that we can proceed to make our offer unconditional. It is in shareholders interests for this process to be contestable.”

“Shell demonstrated by increasing its bid yesterday that the Fletcher Energy assets are worth much more than they offered originally.”

“Shell’s revised offer yesterday was a clear message that they have no intention of going away and threats to do so are hollow. Fletcher Energy shareholders should reject the Shell bid at the shareholder meeting to enable the full benefits of our much higher offer to be made available to shareholders.”

Issued by Allan Boyle Associates Ltd
Contact: Cedric Allan, telephone + 649 303-1633

Visit our website at www.greymouthpetroleum.co.nz

Or email ourpeak@greymouthpetroleum.co.nz

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