> l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1Courier New1Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)**_($* #,##0_);_($* (#,##0);_($* ""_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* ""_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* ""??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* ""??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)60%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0) + ) , * Ј ~~ ؈ ~~#؈ ~~"؈ ~~8"܈ ~~"؈ ~~ ؈ ~~8#܈ ~~7#܈ ~~4#܈ ~~9#܈ ~~9"܈ ~~3#܈ ~~83ffff̙̙3f3fff3f3f33333f33NO TITLE& Unless the context otherwise in&Q?Unless the context otherwis (1)&,PWe have renounced any interest &gBased on Average FiscalYear Pri&IBased on Average FiscalYear (1)!lChanges to Proved ReserveswThird Party Reports&Oil and Gas Production Producti&(Drilling Activity 151 Prior Thr$ Drilling Activity 151 Current$"#Drilling Activity 151 Cur (1)&:Undeveloped Acreage Expirations&PUndeveloped Acreage Expirat (1)&_dUndeveloped Acreage Expirat (2)&yProduction Total Stock Market I&Production Total Stock Mark (1)5
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Approach Resources Inc10K
03/12/2012NO TITLE Delaware
510424817'
(State or other jurisdiction of
(I.R.S. Employer&incorporation or organization)Identification Number)
One Ridgmar Centre
~
R$6500 West Freeway, Suite 800Fort Worth, Texas0((Address of principal executive offices)
(Zip Code)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0tPoWxlD=PF0*8X>
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9
Approach Resources Inc10K
03/12/2012kcUnless the context otherwise indicates, all references in this report to #147;Approach,#148; the #1
Page
PART IItem 1.Business~
Item 1A.
Risk Factors
~
:
Item 1B.!Unresolved Staff Comments~
fItem 2.
Properties~
jItem 3.Legal Proceedings~
Item 4.Mine Safety Disclosures~
PART IIItem 5..&Market for Registrant?s Common Equity,~
.&Related Stockholder Matters and Issuer&Purchases of Equity SecuritiesItem 6.Selected Financial Data~
Item 7.,$Management?s Discussion and Analysis~
80of Financial Condition and Results of OperationsItem 7A.0(Quantitative and Qualitative Disclosures~
About Market RiskItem 8..&Financial Statements and Supplementary~
DataItem 9.5Changes in and Disagreements With Accountants~
.&on Accounting and Financial DisclosureDl=1%aCt(z1v !"#$%&'()*+,./012345678 Item 9A. Controls and Procedures ~
!Item 9B.!!Other Information!!~
!!"#PART III#$Item 10.$3$+Directors, Executive Officers and Corporate$$~
$$%%%
Governance&Item 11.&&Executive Compensation&&~
&&'Item 12.'0'(Security Ownership of Certain Beneficial''~
''((5(Owners and Management and Related Stockholder)))Matters*Item 13.*7*/Certain Relationships and Related Transactions,**~
**++!+and Director Independence,Item 14.,.,&Principal Accounting Fees and Services,,~
,,.PART IV./Item 15.///'Exhibits, Financial Statement Schedules//~
//0
Signatures00~
0011)Index to Financial Statements of Approach111F112Resources Inc.3Index to Exhibits33~
3345$6____________________________17)Created by Morningstar Document Research.08(http://documentresearch.morningstar.com/6g9?6uiJ}l=PF0*8X>
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Approach Resources Inc10K
03/12/2012kcUnless the context otherwise indicates, all references in this report to #147;Approach,#148; the #1 Purchaser Percent of Oil, NGL
and Gas Sales#Belvan Partners, LP (?WTG?)@A@ %,$Shell Trading (US) Company (?Shell?)~
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Approach Resources Inc10K
03/12/2012kcWe have renounced any interest in specified business opportunities, and certain members of our boar
Operating Area Average
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Approach Resources Inc10K
03/12/2012+#Based on Average FiscalYear Prices
Reserves
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03/12/2012+#Based on Average FiscalYear Prices
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# Proved Undeveloped Reserves
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Year Ended
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Approach Resources Inc10K
03/12/2012'Drilling Activity #151; Current
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03/12/2012'Drilling Activity #151; Current
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03/12/2012+#Production Total Stock Market Index
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03/12/2012Oil, NGL and gas sales.
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03/12/2012$Oil, NGL and gas production.
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03/12/2012 Lease operating expense.
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03/12/2012Exploration expense.
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03/12/201291Depletion, depreciation and amortization expense.
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03/12/201291Depletion, depreciation and amortization expense.
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03/12/201291Depletion, depreciation and amortization expense.
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03/12/2012!2012 Capital Expenditures
Payments Due By Period
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03/12/2012!2012 Capital Expenditures Commodity and Period Contract Volume Transacted Contract Price
TypeNatural Gas ? 2012Call230,000 MMBtu/month$6.00/MMBtuCrude Oil ? 2012Collar
700 Bbls/d$85.00/Bbl ? $97.50/Bbl
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Collar
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03/12/2012!2012 Capital Expenditures Commodity and Period Contract Volume Transacted Contract Price
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03/12/2012Summary CompensationITEM 11.EXECUTIVE COMPENSATION
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03/12/2012Beneficial OwnershipITEM 12.0(SECURITY OWNERSHIP OF CERTAIN BENEFICIAL 5 OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
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03/12/2012MEINDEX TO CONSOLIDATED FINANCIAL STATEMENTS OF APPROACH RESOURCES INC. Page
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03/12/2012Derivative Activity.
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03/12/2012Derivative Activity.
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Approach Resources Inc10K
03/12/2012Derivative Activity. Commodity and Period Contract Volume Transacted Contract Price
TypeNatural Gas ? 2012Call230,000 MMBtu/month$6.00/MMBtuCrude Oil ? 2012Collar
700 Bbls/d$85.00/Bbl ? $97.50/Bbl
Crude Oil ? 2012
Collar
500 Bbls/d
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Approach Resources Inc10K
03/12/2012Derivative Activity. Commodity and Period Contract Volume Transacted Contract Price
Type3+Natural Gasoline ? February 2012 ? DecemberSwap
225 Bbls/d
$95.55/Bbl~
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225 Bbls/d
$73.92/BblCrude Oil ? 2013Collar
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Approach Resources Inc10K
03/12/2012
Balance Sheet
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03/12/2012Income Statement
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03/12/2012Derivative Activity.~
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03/12/2012Derivative Activity.
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Approach Resources Inc10K
03/12/2012Derivative Activity.
# Proved Developed and Proved Oil NGLs
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1
)Cleo Thompson, Jr. L.P., WesTex Drilling1)Company, L.P. and Approach Oil & Gas Inc.6.(filed as Exhibit 2.1 to the Company?s Current3+Report on Form 8K filed March 1, 2011, and*"incorporated herein by reference).@%Restated Certificate of Incorporation4,of Approach Resources Inc. (filed as Exhibit0(3.1 to the Company?s Quarterly Report on;3Form 10Q filed December 13, 2007, and incorporatedherein by reference). @%Restated Bylaws of Approach Resources3+Inc. (filed as Exhibit 3.2 to the Company?s4,Quarterly Report on Form 10Q filed December8013, 2007, and incorporated herein by reference).ffffff@0(Specimen Common Stock Certificate (filed4,as Exhibit 4.1 to the Company?s RegistrationD lB6*Sij(9} !"#$%&'()*+,./0123456789:;<=>? 1 )Statement on Form S1/A filed October 18,!!4!,2007 (File No. 333144512), and incorporated"""herein by reference).##$333333$@$4$,Form of Indemnity Agreement between Approach%%0%(Resources Inc. and each of its directors&&2&*and officers (filed as Exhibit 10.1 to the''0'(Company?s Registration Statement on Form((0((S1/A filed September 13, 2007 (File No.)),)$333144512), and incorporated herein***by reference).++,ffffff$@,6,.First Amendment to Form of Indemnity Agreement0(between Approach Resources Inc. and each../.'of its directors and officers (filed as//4/,Exhibit 10.5 to the Company?s Current Report0000(on Form 8K filed December 31, 2008, and11*1"incorporated herein by reference).223 10.3?313)Amended and Restated Employment Agreement44.4&by and between Approach Resources Inc.555and6626*J. Ross Craft dated January 1, 2011 (filed7707(as Exhibit 10.1 to the Company?s Current8818)Report on Form 8K filed January 6, 2011,99.9&and incorporated herein by reference).::; 10.4?;1;)Amended and Restated Employment Agreement<<.<&by and between Approach Resources Inc.==1=)and Steven P. Smart dated January 1, 2011>>/>'(filed as Exhibit 10.2 to the Company?s??0?(Current Report on Form 8K filed JanuaryDlc*p"BT m'qJcc@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_@@7@/6, 2011, and incorporated herein by reference).AAB 10.5?B4B,Employment Agreement by and between ApproachCC.C&Resources Inc. and J. Curtis HendersonDD/D'dated January 1, 2011 (filed as ExhibitEE/E'10.3 to the Company?s Current Report onFF8F0Form 8K filed January 6, 2011, and incorporatedGGGherein by reference).HHI 10.6?I4I,Employment Agreement by and between ApproachJJ.J&Resources Inc. and Qingming Yang datedKK/K'January 24, 2011 (filed as Exhibit 10.1LL/L'to the Company?s Current Report on FormMM4M,8K filed January 28, 2011, and incorporatedNNNherein by reference).OOP 10.7?P4P,Employment Agreement by and between ApproachQQ0Q(Resources Inc. and Ralph P. ManoushagianRR0R(dated January 24, 2011 (filed as ExhibitSS/S'10.2 to the Company?s Current Report onTT9T1Form 8K filed January 28, 2011, and incorporatedUUUherein by reference).VVW 10.8?W4W,Approach Resources Inc. 2007 Stock IncentiveXX2X*Plan, effective as of June 28, 2007 (filedYY5Yas Exhibit 10.6 to the Company?s RegistrationZZ2Z*Statement on Form S1 filed July 12, 2007,[[.[&and incorporated herein by reference).\\] 10.9?]0](First Amendment dated December 31, 2008,^^7^/to Approach Resources Inc. 2007 Stock Incentive__2_*Plan, effective as of June 28, 2007 (filedDl>^
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0
(Company?s Registration Statement on Form1)S1 filed July 12, 2007, and incorporatedherein by reference). 10.12?3+Form of Summary of Stock Option Grant under4,Approach Resources Inc. 2007 Stock Incentive5Plan (filed as Exhibit 10.14 to the Company?s,$Registration Statement on Form S1/A5filed October 18, 2007 (File No. 333144512),.&and incorporated herein by reference). 10.13?0(Form of Restricted Stock Award Agreement0(under Approach Resources Inc. 2007 Stock.&Incentive Plan (filed as Exhibit 10.101)to the Company?s Quarterly Report on Form510Q filed November 6, 2008, and incorporatedherein by reference). 10.14?/'Form of PerformanceBased, TimeVestingD lB6*Rk2s"?'=f !"#$%&'()*+,./0123456789:;<=>? . &Restricted Stock Award Agreement under!!4!,Approach Resources Inc. 2007 Stock Incentive""5"Plan (filed as Exhibit 10.14 to the Company?s##2#*Annual Report on Form 10K filed March 11,$$4$,2011, and incorporated herein by reference).%%& 10.15?&0&(Form of TSRBased Restricted Stock Award''/''Agreement under Approach Resources Inc.((3(+2007 Stock Incentive Plan (filed as Exhibit))/)'10.1 to the Company?s Current Report on**:*2Form 8K filed February 20, 2012, and incorporated+++herein by reference).,,RQ$@.&Registration Rights Agreement dated as..3.+of November 14, 2007, by and among Approach////'Resources Inc. and investors identified0070/therein (filed as Exhibit 10.1 to the Company?s1131+Current Report on Form 8K/A filed December2272/3, 2007, and incorporated herein by reference).334ףp=
W$@434+Gas Purchase Agreement dated as of November5545,21, 2007, between WTG Benedum Joint Venture,6616)as Buyer, and Approach Oil & Gas Inc. and7717)Approach Operating, LLC, as Seller (filed8808(as Exhibit 10.1 to the Company?s Current9939+Report on Form 8K filed November 28, 2007,::.:&and incorporated herein by reference).;;<\(\$@<1<)Gas Purchase Contract dated as of January==.=&1, 2011, between Approach Resources I,>>2>*LP and Approach Oil & Gas Inc., as Seller,??1?)and DCP Midstream, LP, as Buyer (filed asDllfw_q&/B3IdL@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_@@4@,Exhibit 10.1 to the Company?s Current ReportAA<A4on Form 8K filed January 14, 2011, and incorporatedBBBherein by reference).CCD*10.19D1D)Specimen Oil and Gas Lease for UniversityEEELands.FFGffffff$@G/G'$200,000,000 Revolving Credit AgreementHH4H,dated as of January 18, 2008, among ApproachII.I&Resources Inc., as borrower, The FrostJJ.J&National Bank, as administrative agentKK2K*and lender, and the financial institutionsLL/L'named therein (filed as Exhibit 10.1 toMM0M(the Company?s Current Report on Form 8KNN0N(filed January 25, 2008, and incorporatedOOOherein by reference).PPQQk$@Q0Q(Amendment No. 1 dated February 19, 2008,RR/R'to Credit Agreement dated as of JanuarySS0S(18, 2008, among Approach Resources Inc.,TT1T)as borrower, The Frost National Bank, andUU0U(JPMorgan Chase Bank, NA, as lenders, andVV3V+Approach Oil & Gas Inc., Approach Oil & GasWW/W'(Canada) Inc. and Approach Resources I,XX0X(LP, as guarantors (filed as Exhibit 10.1YY/Y'to the Company?s Current Report on FormZZ5Z8K filed February 22, 2008, and incorporated[[[herein by reference).\\]q=
ףp$@]4],Amendment No. 2 dated May 6, 2008, to Credit^^/^'Agreement dated as of January 18, 2008,__3_+among Approach Resources Inc., as borrower,D
lXr!=Xi9S~f`abcdefghijkl``2`*The Frost National Bank, as administrativeaa.a&agent and lender, JPMorgan Chase Bank,bb3b+NA, as lender, and Approach Oil & Gas Inc.,cc5cApproach Oil & Gas (Canada) Inc. and Approachdd0d(Resources I, LP, as guarantors (filed asee4e,Exhibit 99.1 to the Company?s Current Reportff;f3on Form 8K filed August 28, 2008, and incorporatedgggherein by reference).hi$j____________________________1k)Created by Morningstar Document Research.0l(http://documentresearch.morningstar.com/h,\=PF0*8X>
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NO TITLE!Unless the context otherwise in!Unless the context otherwis (1)!We have renounced any interest !Based on Average FiscalYear Pri!Based on Average FiscalYear (1)Changes to Proved ReservesThird Party Reports!Oil and Gas Production Producti!Drilling Activity 151 Prior ThrDrilling Activity 151 CurrentDrilling Activity 151 Cur (1)!Undeveloped Acreage Expirations!Undeveloped Acreage Expirat (1)!Undeveloped Acreage Expirat (2)!Production Total Stock Market I!Production Total Stock Mark (1)
Cash Flows!Derivative Instruments and CommOil NGL and gas salesOil NGL and gas sales (1)Oil NGL and gas productionLease operating expenseExploration expense !Depletion depreciation and amor!Depletion depreciation and (1)!Depletion depreciation and (2)2012 Capital Expenditures2012 Capital Expenditures (1)2012 Capital Expenditures (2)Summary CompensationBeneficial Ownership!INDEX TO CONSOLIDATED FINANCIAL
Balance SheetIncome Statement!INDEX TO CONSOLIDATED FINAN (1)Shareholders EquityCash Flows (1)Capitalized CostsDerivative ActivityDerivative Activity (1)Derivative Activity (2)Derivative Activity (3)Derivative Activity (4)Derivative Activity (5)Derivative Activity (6)Derivative Activity (7)Derivative Activity (8)Derivative Activity (9)Derivative Activity (10)Derivative Activity (11)Balance Sheet (1)Income Statement (1)Derivative Activity (12)Derivative Activity (13)Derivative Activity (14)Derivative Activity (15)!Standardized Measure of Discoun!Standardized Measure of Dis (1)!Standardized Measure of Dis (2)!Notes to Consolidated Financial!Notes to Consolidated Finan (1)!Notes to Consolidated Finan (2)!Notes to Consolidated Finan (3)!Notes to Consolidated Finan (4)!Notes to Consolidated Finan (6)
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Approach Resources Inc10K
03/12/2012f^Notes to Consolidated Financial Statements ? (continued) Selected Quarterly Financial Data (un Exhibit Description of Exhibit
Number$@1)Amendment No. 10 dated as of May 4, 2011,/'to Credit Agreement dated as of January
0
(18, 2008, among Approach Resources Inc.,/'as Borrower, JPMorgan Chase Bank, N.A.,/'as administrative agent and lender, The1)Frost National Bank, BNP Paribas, KeyBank.&National Association and Royal Bank of2*Canada, as lenders, and Approach Oil & Gas2*Inc., Approach Oil & Gas (Canada) Inc. and/'Approach Resources I, LP, as guarantors/'(filed as Exhibit 10.1 to the Company?s5Current Report on Form 8K filed May 4, 2011,.&and incorporated herein by reference).Q$@5Amendment No. 11 dated as of October 7, 2011,/'to Credit Agreement dated as of January0(18, 2008, among Approach Resources Inc.,/'as Borrower, JPMorgan Chase Bank, N.A.,/'as administrative agent and lender, The1)Frost National Bank, BNP Paribas, KeyBank2*National Association, Royal Bank of CanadaD lB6*T r'B^
T r' !"#$%&'()*+,./0123456789:;<=>? / 'and Wells Fargo Bank, N.A., as lenders,!!1!)and Approach Oil & Gas Inc., Approach Oil""2"*& Gas (Canada) Inc. and Approach Resources##3#+I, LP, as guarantors (filed as Exhibit 10.1$$/$'to the Company?s Current Report on Form%%4%,8K filed October 11, 2011, and incorporated&&&herein by reference).''(p=
ף$@(1()Amendment No. 12 dated as of December 20,))5)2011, to Credit Agreement dated as of January**0*(18, 2008, among Approach Resources Inc.,++/+'as Borrower, JPMorgan Chase Bank, N.A.,,,3,+as administrative agent and lender, KeyBank0(National Association, The Frost National..2.*Bank, Royal Bank of Canada and Wells Fargo////'Bank, N.A., as lenders, BNP Paribas, as0000(departing lender, and Approach Oil & Gas1121*Inc., Approach Oil & Gas (Canada) Inc. and22/2'Approach Resources I, LP, as guarantors33/3'(filed as Exhibit 10.1 to the Company?s4414)Current Report on Form 8K filed December5585021, 2011, and incorporated herein by reference).667333333,@717)Code of Conduct (filed as Exhibit 14.1 to8808(the Company?s Annual Report on Form 10K99.9&filed March 28, 2008, and incorporated:::herein by reference).;;<5@<.<&Subsidiaries (filed as Exhibit 21.1 to==0=(the Company?s Annual Report on Form 10K>>.>&filed March 13, 2010, and incorporated???herein by reference).DRlh0;U p$@4eM@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_@@A *23.1A)A!Consent of Hein & Associates LLP.BBC *23.2C,C$Consent of DeGolyer and MacNaughton.DDE *31.1E0E(Certification by the President and ChiefFFF%Executive Officer Pursuant to SectionGG.G&302 of the SarbanesOxley Act of 2002.HHI *31.2I4I,Certification by the Chief Financial OfficerJJ5JPursuant to Section 302 of the SarbanesOxleyKKKAct of 2002.LLM *32.1M0M(Certification by the President and ChiefNN/N'Executive Officer Pursuant to 18 U.S.C.OO8O0Section 1350, as adopted Pursuant to Section 906PP*P"of the SarbanesOxley Act of 2002.QQR *32.2R4R,Certification by the Chief Financial OfficerSS3S+Pursuant to U.S.C. Section 1350, as adoptedTT5TPursuant to Section 906 of the SarbanesOxleyUUUAct of 2002.VVW *99.1W+W#Report of DeGolyer and MacNaughton.XXY*101.INSYYXBRL Instance Document.ZZ[*101.SCH[0[(XBRL Taxonomy Extension Schema Document.\\]*101.CAL]4],XBRL Taxonomy Extension Calculation Linkbase^^^ Document.__D l7:"{K3B?YAz"`abcdef`*101.LAB`.`&XBRL Taxonomy Extension Label Linkbaseaaa Document.bc$d____________________________1e)Created by Morningstar Document Research.0f(http://documentresearch.morningstar.com/xuiA=PF0*8X>
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NO TITLE!Unless the context otherwise in!Unless the context otherwis (1)!We have renounced any interest !Based on Average FiscalYear Pri!Based on Average FiscalYear (1)Changes to Proved ReservesThird Party Reports!Oil and Gas Production Producti!Drilling Activity 151 Prior ThrDrilling Activity 151 CurrentDrilling Activity 151 Cur (1)!Undeveloped Acreage Expirations!Undeveloped Acreage Expirat (1)!Undeveloped Acreage Expirat (2)!Production Total Stock Market I!Production Total Stock Mark (1)
Cash Flows!Derivative Instruments and CommOil NGL and gas salesOil NGL and gas sales (1)Oil NGL and gas productionLease operating expenseExploration expense !Depletion depreciation and amor!Depletion depreciation and (1)!Depletion depreciation and (2)2012 Capital Expenditures2012 Capital Expenditures (1)2012 Capital Expenditures (2)Summary CompensationBeneficial Ownership!INDEX TO CONSOLIDATED FINANCIAL
Balance SheetIncome Statement!INDEX TO CONSOLIDATED FINAN (1)Shareholders EquityCash Flows (1)Capitalized CostsDerivative ActivityDerivative Activity (1)Derivative Activity (2)Derivative Activity (3)Derivative Activity (4)Derivative Activity (5)Derivative Activity (6)Derivative Activity (7)Derivative Activity (8)Derivative Activity (9)Derivative Activity (10)Derivative Activity (11)Balance Sheet (1)Income Statement (1)Derivative Activity (12)Derivative Activity (13)Derivative Activity (14)Derivative Activity (15)!Standardized Measure of Discoun!Standardized Measure of Dis (1)!Standardized Measure of Dis (2)!Notes to Consolidated Financial!Notes to Consolidated Finan (1)!Notes to Consolidated Finan (2)!Notes to Consolidated Finan (3)!Notes to Consolidated Finan (4)!Notes to Consolidated Finan (5)
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03/12/2012f^Notes to Consolidated Financial Statements ? (continued) Selected Quarterly Financial Data (un Exhibit Description of Exhibit
Number *101. PRE,$XBRL Taxonomy Extension Presentation
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NO TITLE!Unless the context otherwise in!Unless the context otherwis (1)!We have renounced any interest !Based on Average FiscalYear Pri!Based on Average FiscalYear (1)Changes to Proved ReservesThird Party Reports!Oil and Gas Production Producti!Drilling Activity 151 Prior ThrDrilling Activity 151 CurrentDrilling Activity 151 Cur (1)!Undeveloped Acreage Expirations!Undeveloped Acreage Expirat (1)!Undeveloped Acreage Expirat (2)!Production Total Stock Market I!Production Total Stock Mark (1)
Cash Flows!Derivative Instruments and CommOil NGL and gas salesOil NGL and gas sales (1)Oil NGL and gas productionLease operating expenseExploration expense !Depletion depreciation and amor!Depletion depreciation and (1)!Depletion depreciation and (2)2012 Capital Expenditures2012 Capital Expenditures (1)2012 Capital Expenditures (2)Summary CompensationBeneficial Ownership!INDEX TO CONSOLIDATED FINANCIAL
Balance SheetIncome Statement!INDEX TO CONSOLIDATED FINAN (1)Shareholders EquityCash Flows (1)Capitalized CostsDerivative ActivityDerivative Activity (1)Derivative Activity (2)Derivative Activity (3)Derivative Activity (4)Derivative Activity (5)Derivative Activity (6)Derivative Activity (7)Derivative Activity (8)Derivative Activity (9)Derivative Activity (10)Derivative Activity (11)Balance Sheet (1)Income Statement (1)Derivative Activity (12)Derivative Activity (13)Derivative Activity (14)Derivative Activity (15)!Standardized Measure of Discoun!Standardized Measure of Dis (1)!Standardized Measure of Dis (2)!Notes to Consolidated Financial!Notes to Consolidated Finan (1)!Notes to Consolidated Finan (2)!Notes to Consolidated Finan (3)!Notes to Consolidated Finan (4)!Notes to Consolidated Finan (5)!Notes to Consolidated Finan (6)NGL Prices (1)U }$}$ }
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Approach Resources Inc10K
03/12/2012
NGL Prices
 %Estimated by DeGolyer and MacNaughton
Net Proved Reserves
as ofDecember 31, 2011
Oil and
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Sales
Oil Equivalent
Condensate(Mbbl)
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(Mboe)(Mbbl)
(MMcf)
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Proved Developed~
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Proved Undeveloped~
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Total Permian Basin~
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Proved Developed~
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RProved Undeveloped~
~
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Total East Texas Basin~
~
~
~
RTotal Proved~
~
~
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NO TITLE!Unless the context otherwise in!Unless the context otherwis (1)!We have renounced any interest !Based on Average FiscalYear Pri!Based on Average FiscalYear (1)Changes to Proved ReservesThird Party Reports!Oil and Gas Production Producti!Drilling Activity 151 Prior ThrDrilling Activity 151 CurrentDrilling Activity 151 Cur (1)!Undeveloped Acreage Expirations!Undeveloped Acreage Expirat (1)!Undeveloped Acreage Expirat (2)!Production Total Stock Market I!Production Total Stock Mark (1)
Cash Flows!Derivative Instruments and CommOil NGL and gas salesOil NGL and gas sales (1)Oil NGL and gas productionLease operating expenseExploration expense !Depletion depreciation and amor!Depletion depreciation and (1)!Depletion depreciation and (2)2012 Capital Expenditures2012 Capital Expenditures (1)2012 Capital Expenditures (2)Summary CompensationBeneficial Ownership!INDEX TO CONSOLIDATED FINANCIAL
Balance SheetIncome Statement!INDEX TO CONSOLIDATED FINAN (1)Shareholders EquityCash Flows (1)Capitalized CostsDerivative ActivityDerivative Activity (1)Derivative Activity (2)Derivative Activity (3)Derivative Activity (4)Derivative Activity (5)Derivative Activity (6)Derivative Activity (7)Derivative Activity (8)Derivative Activity (9)Derivative Activity (10)Derivative Activity (11)Balance Sheet (1)Income Statement (1)Derivative Activity (12)Derivative Activity (13)Derivative Activity (14)Derivative Activity (15)!Standardized Measure of Discoun!Standardized Measure of Dis (1)!Standardized Measure of Dis (2)!Notes to Consolidated Financial!Notes to Consolidated Finan (1)!Notes to Consolidated Finan (2)!Notes to Consolidated Finan (3)!Notes to Consolidated Finan (4)!Notes to Consolidated Finan (5)!Notes to Consolidated Finan (6)
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03/12/2012
NGL Prices
Proved
Developed
Developed
Undeveloped
Total
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N~
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