Devon Energy Corp. and PennzEnergy Co. completed their merger,which was announced May 20. Shareholders of both companies approvedthe deal Tuesday. More than 99% of the shares represented at theDevon meeting were cast in favor of the merger. Of the sharesrepresented at the PennzEnergy meeting, about 92% were cast infavor of the merger.

Each PennzEnergy share was converted into 0.4475 shares ofcommon stock of the new Devon Energy. Each share of Devon commonstock was converted into one share of new Devon. PennzEnergyshareholders will own about 31% of the combined company, and Devonshareholders will own about 69%.

Devon now ranks in the top-10 of all U.S.-based independent oiland gas producers in terms of market capitalization, total provedreserves and annual production. The company has totalcapitalization of about $5 billion, proved reserves, as of Dec. 31,of about 660 MMBoe (52% gas and 48% liquids), net average dailyproduction during 1998 of 230,000 Boe (60% gas and 40% liquids).Domestic operations are concentrated in four core areas withyear-end 1998 proved reserves of 422 MMBoe. The company also haslarge coal bed methane production from Devon’s San Juan Basinreserves and significant exposure to the developing Powder RiverBasin and Raton Basin coal seam plays. The new Devon is one of thelargest producers in the Gulf of Mexico with operations on 75blocks and interests in an additional 98 undeveloped blocks.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.