FORT WORTH, Texas, Apr 24, 2008 (PrimeNewswire via COMTEX News Network) -- Approach Resources Inc. (Nasdaq:AREX) has acquired an additional 9,482 gross (4,899 net) acres of leasehold interests adjacent to the Company's Cinco Terry project in Crockett County, Texas. The Company believes the acreage is prospective for Ellenburger and Canyon Sands production. The additional acreage expands the Company's Cinco Terry project to a total of 31,382 gross (14,406 net) acres. The Company's total acreage portfolio now covers 283,282 gross and 196,081 net acres in Texas, New Mexico, Kentucky and British Columbia.
The Company acquired the additional acreage in two transactions. First, the Company participated in The University of Texas System's 113th Lease Sale. In a sealed-bid auction, the Company purchased 7,843 gross (4,052 net) acres for $1.9 million. Additionally, the Company acquired 1,639 gross (847 net) acres from an independent operator for $216,000. This purchase included one existing Canyon well holding 660 gross acres by production.
As of December 31, 2007, the Company reported estimated proved reserves of 18.3 Bcfe in Cinco Terry and 119 identified drilling locations. The Company currently is drilling its Cinco Terry project on 80-acre spacing. To date, the Company has drilled and completed 21 gross (10.5 net) wells in Cinco Terry (13 gross Ellenburger wells and eight gross Canyon wells). As of December 31, 2007, the Company reported a total of 180.4 Bcfe in net proved reserves and 859 identified drilling locations across its holdings.
About Approach Resources Inc.
Approach Resources Inc. is an independent energy Company engaged in the exploration, development, production and acquisition of unconventional natural gas and oil properties onshore in the United States and British Columbia. The Company focuses its growth efforts primarily on finding and developing natural gas and oil reserves in known tight gas sands and shale gas and oil areas. The Company currently operates in Texas, Kentucky and New Mexico and has a non-operating interest in British Columbia. For more information about the Company, please visit our website at www.approachresources.com.
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Forward-Looking Statements and Cautionary Statements
The foregoing 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 expectations of plans, strategies, objectives and anticipated operating results of the Company, including as to the Company's drilling program. 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. Factors that could cause the Company's actual results to differ are discussed in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 28, 2008. 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.
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SOURCE: Approach Resources Inc.
Approach Resources Inc.
J. Ross Craft
Steven P. Smart
J. Curtis Henderson