Its shares opened yesterday morning on the market at 20.5 cents and closed at 18 cents.

Late last year, LDR undertook an off-market script takeover bid for Alto shares and options by offering 13 LDR shares for every one Alto share. Before re-listing, the shares were consolidated at 1:8.

Alto operates in the US Appalachian Basin, with about 70,000 gross acres over four main project areas across Kentucky, Tennessee and West Virginia.

Alto managing director Greg Channon said the merger with LDR had received overwhelming shareholder support from both companies.

"Shareholders have widely supported the strategy of building a substantial, US-focused business with a significant foothold in a historically productive gas region,” Channon said.

“Importantly, there is infrastructure at the doorstep, so costs are low."

In addition, Alto has announced the drilling and completion of three wells in the Little Sandy Project in Kentucky, in which it is being carried through by partner Norwest Energy. Further drilling programs in Home Run and Cornstalk are expected in coming weeks, the company said.

Channon said while Alto's corporate headquarters would remain in Perth, Western Australia, the company's US-based operations team would develop its existing assets, and identify further opportunities in the region.

"Alto will continue to target both conventional and unconventional gas plays, such as our Home Run project,” he said.

“We have an aggressive drilling program for the first half of 2006 with a total 26 wells to be drilled across Little Sandy, Home Run, Bug Run and Cornstalk."