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FEG takes up Petroz options ahead of Thursday meeting

By Phil Boeyen, ShareChat Business News Editor

Monday 2nd October 2000

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Fletcher Energy is buttering up Petroz shareholders by exercising its option to acquire 14.99% of the Australian energy exploration company. FEG will spend A$13 million to acquire nearly 30 million shares at A43.5 cents each.

Fletcher Energy CEO Greig Gailey says the move reaffirms his company's commitment to the placement and rights issue proposal to be voted on by Petroz shareholders on Thursday.

"We believe this proposal represents the best available option that enables Petroz to successfully develop its asset base."

Last Friday the Petroz board rejected a Novus Petroleum merger proposal which offered one Novus share for every 4.5 Petroz shares.

Petroz said the offer did not represent fair value for its shareholders.

Petroz MD, Rod Brown, said on Friday that the Petroz board's recommendation to support the Fletcher proposal at this week's general meeting "will not change unless a better proposal emerges in the meantime."

Fletcher and Novus have been drawn to the Petroz honey-pot because of the potential of the company's Timor Sea reserves, as well as a recent earnings turnaround.

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