Lomak Petroleum and Domain Energy last week completed theirmerger and formation of a new company called Range Resources (RRC),which will have a 1 Tcf reserve base and $1 billion in totalassets. The reserves are 72% natural gas with daily production at9,248 b/d of oil and liquids and 161 MMcf/d of gas.

“Based on total assets, Range is among the 20 largest publiclytraded independent oil and gas companies in the United States,”noted Range President and CEO John H. Pinkerton. The mergercombines an inventory of more than 1,700 development projects inthe Permian Basin, Gulf Coast, Appalachia and Midcontinent with ahigh-impact exploration program. This program, the product of morethan two years of geoscience, engineering and leasing, isapproaching fruition, as several projects reach the drilling stageover the next 12 months.

“The merger affords stockholders an interest in a larger, morediverse asset base with substantial exploitation and explorationpotential,” said Range’s COO Michael V. Ronca. “Range’s high marginproperty base provides the foundation for future growth.”

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

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

Rocco Canonica

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