Approach Resources Inc. Reports Second Quarter 2010 Results.

Extract

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Approach Resources Inc. Reports Second Quarter 2010 Results.

Revenue Grows 33%

Oil & NGLs Increase to 50% of Proved Reserves

FORT WORTH, Texas -- Approach Resources Inc. (NASDAQ:AREX) today reported financial and operating results for the second quarter of 2010. Highlights for the second quarter of 2010, compared to the second quarter of 2009, include:

* Net income increased 331% to $1.6 million, or $0.07 per diluted share

* Adjusted net income (non-GAAP) increased 29% to $2.8 million, or $0.13 per diluted share

* Revenues increased 33% to $13.2 million

* EBITDAX (non-GAAP) of $10.3 million, or $0.49 per diluted share

* Production of 2.2 Bcfe (24.5 MMcfe/d)

In addition, average daily production for July 2010 increased 8% to 26.5 MMcfe/d, compared to production for the second quarter of 2010.

Separately, the Company today reported mid-year 2010 proved reserves of 278.3 Bcfe, an increase of 27% from year end 2009. Total proved reserves at June 30, 2010, were 50% oil and NGLs and 50% natural gas, compared to 23% oil and NGLs and 77% natural gas at year end 2009.

Management's Comments

J. Ross Craft, the Company's President and Chief Executive Officer, commented, "We...

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