The merger will officially combine the interests of shared managing director, Mr Stewart Elliot, who has a 17 per cent stake in Pacific Energy and a 57% stake in EWC.

Mr Elliot has bankrolled EWC to the tune of $37 million during the past two years. Firstly by a convertible note issue in April 2000 and then by a $10 million equity issue last December.

A one time darling of the markets due its portfolio of Australian and Asian energy projects, the company encountered financial problems due to delay in payments from the Indonesian Government for output from its Sengkang power station.

Recently, the company encountered more problems by way of a short term financing facility entered into with the Commonwealth Bank back in 1997.