Approach Resources – Day Three Breakout Notes

Ross Craft, President and Chief Executive Officer and Steve Smart, Executive Vice President and Chief Financial Officer of Approach Resources (AREX) presented today at EnerCom’s The Oil & Gas Conference® 17. Approach Resources Inc. is an independent oil and natural gas company with headquarters in Fort Worth, Texas. Approach aims to explore and develop unconventional oil and gas reserves at best-in-class operating and development costs. Approach’s core operating area is in the Permian Basin in West Texas.

During the company’s breakout session, management was asked the following questions:

• In regards to your current wells, is the cost staying relatively flat?
• Can you comment a little on your competitors El Paso and BHP?
• Do you foresee any constraints for services you need given the competition around the area?
• How many wells per section do you believe you can get up to?
• What do you expect to be necessary capital expenditures for infrastructure needs going forward?
• What are the major obstacles you’re working with as far as completing wells right now?
• How much fracturing fluid have you been recovering?
• Approach is one of the first companies using stacked laterals, how are you looking at drilling and designing that?
• What are the monthly operating costs you’re seeing on the horizontals and what do you think you can get that down to?
• When would you bring additional horizontal rigs in?
• Based on your current stacking levels, what would be going too fast in the play?
• Over such a large geographical area, what is the biggest geologic risk that you see?

Click here for Approach Resources’ webcast.

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