Approach Resources 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.
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."
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