FORT WORTH, Texas, May 28, 2008 (PrimeNewswire via COMTEX News Network) -- Approach Resources Inc. (Nasdaq:AREX) ("Approach" or the "Company") today announced that Yorktown Energy Partners V, L.P. ("Yorktown V") has advised the Company that Yorktown V distributed a total of 940,979 shares of Approach common stock to Yorktown V limited and general partners after the market closed on May 27, 2008, in accordance with the terms of Yorktown V's partnership agreement. Following the distribution, Yorktown V, together with Yorktown Energy Partners VI, L.P. and Yorktown Energy Partners VII, L.P., will continue to hold 8,468,809 million shares of the Company's common stock, representing 41% of the Company's outstanding shares.
Yorktown V has also informed the Company that the shares of the Company's common stock that were distributed can be immediately resold. The principals of the general partner of Yorktown V further advised the Company that they intend to retain the shares received in the distribution for the foreseeable future.
Yorktown Partners LLC, a New York-based private equity firm that invests in companies in the energy industry, first invested in the Company in January 2003 through Yorktown V.
"Yorktown has been and continues to be a supportive investor in Approach. We expect that Yorktown V's initial distribution and any future distributions will improve the liquidity available to investors in Approach," said Ross Craft, the Company's President and Chief Executive Officer. "We are pleased that the principals of the general partner of Yorktown V are continuing to hold their investment in Approach."
The number of shares of Approach common stock currently outstanding, which was not affected by Yorktown V's distribution, is 20,651,591.
Forward-Looking Statements and Cautionary Statements
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 expectations of management regarding Yorktown's intent with respect to future distributions. 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. In particular, careful consideration should be given to the cautionary statements and risk factors described in the Company's Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on March 28, 2008 and May 8, 2008, respectively. 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.
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 in the United States and British Columbia. The Company focuses on natural gas and oil reserves in tight sands and shale. The Company operates or holds leases in Texas, Kentucky and New Mexico and has a non-operating interest in British Columbia. For more information about the Company, please visit www.approachresources.com.
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SOURCE: Approach Resources Inc.
Approach Resources Inc.
J. Ross Craft
Steven P. Smart
J. Curtis Henderson