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Lomak, Domain Merger Forms Top-20 Independent

Lomak, Domain Merger Forms Top-20 Independent

Lomak Petroleum and Domain Energy last week completed their merger and formation of a new company called Range Resources (RRC), which will have a 1 Tcf reserve base and $1 billion in total assets. The reserves are 72% natural gas with daily production at 9,248 b/d of oil and liquids and 161 MMcf/d of gas.

"Based on total assets, Range is among the 20 largest publicly traded independent oil and gas companies in the United States," noted Range President and CEO John H. Pinkerton. The merger combines an inventory of more than 1,700 development projects in the Permian Basin, Gulf Coast, Appalachia and Midcontinent with a high-impact exploration program. This program, the product of more than two years of geoscience, engineering and leasing, is approaching fruition, as several projects reach the drilling stage over the next 12 months.

"The merger affords stockholders an interest in a larger, more diverse asset base with substantial exploitation and exploration potential," said Range's COO Michael V. Ronca. "Range's high margin property base provides the foundation for future growth."

Range will be headquartered in Fort Worth, with offices in Houston, Oklahoma City and Hartville, Ohio. Pursuant to the merger agreement, Domain stockholders received 1.2083 shares of Range common stock for each Domain share they held. Lomak stockholders will not be required to exchange their stock certificates. Effective with the merger, Range now has approximately 36 million shares outstanding.

Southwest Securities restated Lomak Petroleum's accumulate rating, viewing the combination as a positive for both companies. Lomak's shares traded flat at $7.75/share on Tuesday. Domain share prices rose $0.44 to $9.31.

Rocco Canonica

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