Approach Resources Acquires Additional Acreage in TX
Approach Resources Inc. 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.
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