RICHMOND, Va., July 31 /PRNewswire-FirstCall/ -- Dominion (NYSE: D) announced today that it has closed on two separate sales of U.S. onshore natural gas and oil exploration and production operations for a total of approximately $6.5 billion. These operations include 3.51 trillion cubic feet equivalent (Tcfe) of proved natural gas and oil reserves as of Dec. 31, 2006.

  In the transactions completed today:

  -- HighMount Exploration & Production LLC, a newly formed subsidiary of
     Loews Corporation (NYSE: LTR), purchased Dominion's operations in the
     Permian Basin, Michigan and Alabama for approximately $4.0 billion.
     These operations include reserves of approximately 2.5 Tcfe on Dec. 31,
     2006.

  -- XTO Energy Inc. (NYSE: XTO) purchased Dominion's operations in the
     Rocky Mountains, San Juan Basin and the Gulf Coast region for
     approximately $2.5 billion. These operations include proved reserves of
     approximately 1 Tcfe on Dec. 31, 2006.

Proceeds from the sales will be used to repurchase stock under the company's outstanding tender offer that expires on Aug. 7, unless extended.

With these sales, Dominion has closed on more than 85 percent of the natural gas and oil reserves the company plans to sell. In June, Dominion reached an agreement to sell the other 15 percent, approximately 780 billion cubic feet equivalent (Bcfe), to Linn Energy, LLC for approximately $2.05 billion. That sale is expected to close by the end of the third quarter 2007, subject to customary closing conditions and adjustments. When it is completed, Dominion will have sold about 5.5 Tcfe for approximately $13.9 billion.

As previously announced, Dominion will retain its Appalachian E&P operations, which include approximately 1 Tcfe of proved reserves as of Dec. 31, 2006. Those operations are lower risk and fit well strategically with Dominion's natural gas gathering, pipeline and storage system.

Dominion was advised in the two sales announced today by the investment banking firms of JPMorgan, Lehman Brothers and Juniper Advisory L.P. The company's legal advisers were BakerBotts LLP and McGuireWoods LLP.

Dominion is one of the nation's largest producers of energy, with a portfolio of more than 26,500 megawatts of generation and 7,800 miles of natural gas transmission pipeline. Dominion also owns and operates the nation's largest underground natural gas storage system with about 960 billion cubic feet of storage capacity and serves retail energy customers in 11 states. For more information about Dominion, visit the company's Web site at http://www.dom.com/ .

SOURCE: Dominion

CONTACT: Media, Ryan Frazier, +1-804-819-2521, C.Ryan.Frazier@dom.com, or
Mark Lazenby, 804-819-2042, Mark.Lazenby@dom.com, or Analysts, Greg Snyder,
+1-804-819-2383, James.Gregory.Snyder@dom.com, or Fiona McCarthy,
+1-804-819-2447, Fiona.R.McCarthy@dom.com, all of Dominion

Web site: http://www.dom.com/