The directors of Pacific Energy told the EWC board there was no longer an adequate premium in the deal for PEL shareholders after their independent experts, KPMG, said they could no longer stand by their previous positive endorsement.

PEL's share price has risen on the back of its 41 million share stake in Strategic Minerals Corporation, which has doubled in the last two months to be worth almost $9 million. Also dulling the deal for PEL was the fact that EWC had recently reached agreement with its major creditors, the Commonwealth Bank, to settle its debts in full by trade sales or initial public offering.