Approach Resources Inc. Reports Third Quarter 2011 Results and Announces 2012 Capital Budget.

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Approach Resources Inc. Reports Third Quarter 2011 Results and Announces 2012 Capital Budget.

2012 Capital Budget Set at $160 Million, Targeting 20%+ Production Growth in 2012

Borrowing Base Increases to $260 Million

Horizontal Wolfcamp Wells IP at 1,044 Boe/d -798 Boe/d

Vertical Wolffork Recompletions Average 152 Boe/d IP

Vertical Wolffork Wells Average 140 Boe/d IP

FORT WORTH, Texas -- Approach Resources Inc. (NASDAQ: AREX) today reported its third quarter 2011 results. Highlights for third quarter 2011, compared to third quarter 2010, include:

* Total production increased 46% to 612 MBoe (6.7 MBoe/d)

* Oil and NGL production increased 148% to 350 MBbls

* Revenues increased 87% to $28 million

* Net income increased 240% to $7.1 million, or $0.25 per diluted share

* Adjusted net income (non-GAAP) increased 160% to $5.9 million, or $0.21 per diluted share

* EBITDAX (non-GAAP) increased 86% to $21.7 million, or $0.76 per diluted share

Production for third quarter 2011 totaled 612 MBoe (6.7 MBoe/d), compared to 418 MBoe (4.5 MBoe/d) in third quarter 2010, a 46% increase over the prior year period. Oil and NGL production for third quarter 2011 increased 148% to 350 MBbls, compared to 141 MBbls produced in third quarter 2010. Production for third quarter 2011 was 57% oil and NGLs and 43% natural gas, compared to 34% oil and NGLs and 66% natural gas in third quarter 2010. Oil and NGL p...

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