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 FORT WORTH, Texas, Sept. 21 /PRNewswire/ -- Lomak Petroleum, Inc. (NASDAQ: LOMK) today announced that it has executed a letter of intent covering the purchase of Mark Resources Corporation (MRC), a privately held company. The transaction involves the payment of approximately $24 million for MRC's equity and assumption of roughly $2 million of liabilities. MRC's assets include interests in nearly 700 producing wells, 230 miles of gas gathering lines and over 200 proven drilling locations. Lomak estimates that at Dec. 31, 1992, MRC's proved reserves approximated 7 million barrels of oil equivalents ("BOE"), of which 90 percent was natural gas. MRC's assets are located primarily in Appalachia, in proximity to Lomak's existing operations. At closing, Lomak will assume operations of over 600 producing wells.
 The combination of MRC's assets and personnel will assist Lomak in significantly expanding its presence in Appalachia. The acquisition is subject to a definitive agreement and final due diligence. The transaction should close prior to year end. The purchase is expected to initially be funded principally from Lomak's existing bank credit facility. Lomak is actively considering a public offering of equity securities to ultimately finance the purchase. Upon closing, Peter Mark, MRC's president and founder, will join Lomak's board of directors as vice chairman. Mark is expected to play a significant role in Lomak's ongoing acquisition program.
 The transaction is by far the largest of the 36 purchases concluded by Lomak in the past five years and would have a significant impact on the company. Proforma for the transaction, Lomak's revenues, net income, cash flow and production would each increase by over 50 percent from current levels despite that approximately 60 percent of MRC's reserves are undeveloped. Total assets would jump 65 percent to nearly $70 million. Assuming completion of the transaction, Lomak will have completed $38 million of property acquisitions in 1993. On a proforma basis, these acquisitions in aggregate would increase Lomak's estimated proved oil and gas reserves to nearly 16 million BOE, a more than three- fold increase since Dec. 31, 1992.
 Lomak Petroleum, Inc. is engaged in the acquisition, production and development of oil and gas properties and provides field services ancillary to the oil industry.
 -0- 9/21/93
 /CONTACT: C. R. Michaels, vice chairman, 216-877-6747, or John H. Pinkerton, president, 817-870-2601, both of Lomak Petroleum/

CO: Lomak Petroleum, Inc.; Mark Resources Corp. ST: Texas IN: OIL SU: TNM

KL-AR -- CL006 -- 3962 09/21/93 07:45 EDT
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Publication:PR Newswire
Date:Sep 21, 1993

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