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Monday March 29, 3:48 pm Eastern Time

Greka Energy says stock undervalued

NEW YORK, March 29 (Reuters) - Greka Energy Corp. (Nasdaq:GRKA - news) said it had no
explanation for the 34 percent drop in its share price on Monday.

It said the newly-created energy technology company was poised to deliver earnings and revenue

The New York-based company, the product of Horizontal Ventures and Saba Petroleum Co., said it was looking to capitalize on a
recent recovery in oil and gas prices that previously had slashed the profits of drilling and exploration companies. The merger was
completed last week.

In late trading on the Nasdaq, where it was the biggest percentage loser, Greka stock was down 1-5/8 at 5-3/4, a 25 percent drop.
Earlier, it hit a 52-week low of 4-7/8, bucking a sharp rally in the broader markets and in other energy stocks.

Greka said it uses short radius horizontal drilling technology developed by oil giant BP Amoco (NYSE:BPA - news). It has oil and gas
production and development activities primarily in Canada and the United States, and in Indonesia and China.

``The merger ... positions us well for strong future revenue and earnings growth,' Greka Chief Executive Randeep Grewal said. ``We
feel our stock continues to be extremely undervalued and is highly attractive at these levels.'

The company said it will hold a conference call on Tuesday with investors to discuss its operations and financial outlook.
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