Source: Approach Resources
Approach Resources Inc. (NASDAQ: AREX) 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.
“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,” J. Ross Craft, President and CEO, said. “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.”
Approach Resources Inc. is an independent oil and gas company with core operations, production and reserves located in the Permian Basin in West Texas. The Company targets multiple oil and liquids-rich formations in the Permian Basin, where the Company operates approximately 109,000 net acres. At June 30, 2010, the Company’s estimated proved reserves were 46.4 million barrels of oil equivalent, 50% oil and NGLs and 50% natural gas.