Exploration & Production

Approach Adds 100 MBOE to Q1 Production

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   |    Monday,April 15,2013

Approach Resources Inc. reported preliminary production for first quarter 2013 of 754 MBoe (8.4 MBoe/d), compared to 654 MBoe (7.2 MBoe/d) produced in first quarter 2012, a 15% increase.

Estimated oil production for first quarter 2013 increased 63% to 310 MBbls, compared to 191 MBbls produced in first quarter 2012. Estimated production for first quarter 2013 was 41% oil, 28% NGLs and 31% natural gas, compared to 29% oil, 33% NGLs and 38% natural gas in first quarter 2012.

As previously reported, estimated production for first quarter 2013 was impacted by a third-party NGL fractionation facility repair and maintenance, decreasing our average volumes by approximately 6.1 MBoe/d beginning the second week in March. As of April 6, 2013, substantially all production was back online. Turnaround activity for NGL fractionators along the Gulf Coast typically occurs during the spring season. We currently do not expect further downtime as a result of this activity, but will provide an update if conditions change.

Beginning April 3, 2013, we began flowing oil down our joint venture pipeline, which is a 38-mile pipeline primarily in Crockett and Reagan counties. We expect that the oil pipeline will enable the Company to efficiently transport our crude oil production to market, reduce our transportation differential and provide optionality for accessing markets with superior price realizations.