FORT WORTH, Texas--(BUSINESS WIRE)--Approach Resources Inc. (NASDAQ: AREX) announced that it has acquired additional acreage in Crockett County, Texas, in the Permian Basin, that further expands the Company’s exploration interests targeting the Wolffork oil shale play. In the transaction, Approach acquired leasehold interests covering 10,900 contiguous, net acres from private parties. The new acreage, or Pangea West, is approximately nine miles west of the Company’s existing acreage in northeast Crockett County. The Company’s total acreage position in the Permian Basin now covers approximately 151,000 gross (109,000 net) acres.
Management Comment
J. Ross Craft, President and Chief Executive Officer, said, “Acquiring additional acreage in the Permian Basin enhances our leverage to the multi-zone potential of the Wolffork oil shale play and adds to our portfolio of opportunities. Based on our preliminary geological evaluation of the new acreage, we believe the new acreage will be an extension of the Wolffork oil shale play in Project Pangea, and may also be prospective for the shallower San Andres and deeper Canyon Sands, Strawn and Ellenburger formations. We plan to begin to delineate the Wolffork trend across the new acreage during the second half of 2011.”
Approach Resources Inc. is an independent oil and gas company with core operations, production and reserves located in the Permian Basin in West Texas. The Company targets multiple oil and liquids-rich formations in the Permian Basin, where the Company operates approximately 109,000 net acres. At June 30, 2010, the Company’s estimated proved reserves were 46.4 million barrels of oil equivalent, 50% oil and NGLs and 50% natural gas. For more information about the Company, please visit www.approachresources.com. Please note that the Company routinely posts important information about the Company under the Investor Relations section of its website.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the prospectivity of the acquired acreage and future drilling plans. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in the Company’s Securities and Exchange Commission (“SEC”) filings. The Company’s SEC filings are available on its website at www.approachresources.com. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.