FORT WORTH, Texas, Nov 3, 2009 (GlobeNewswire via COMTEX News Network) --

Approach Resources Inc. (Nasdaq:AREX) today reported third quarter 2009 financial and operating results.

Highlights

Highlights for the third quarter of 2009 (compared to third quarter of 2008) include:

 -- Production decreased 3.7% to 2.0 Bcfe (21.8 MMcfe/d)
 -- Revenues decreased 60.1% to $8.8 million, on a 58.5% drop in
    average realized commodity prices (before the effect of commodity
    derivatives) to $4.39 per Mcfe and a 37.8% drop in average realized
    commodity prices (after the effect of commodity derivatives) to
    $6.52 per Mcfe
 -- Net loss was $3.1 million, or $(0.15) per diluted share, compared
    to net income of $19.8 million, or $0.95 per diluted share, for the
    third quarter of 2008, a 115.8% decrease
 -- Adjusted net income (a non-GAAP measure) was $1.1 million, or $0.05
    per diluted share, a 85.6% decrease
 -- EBITDAX (a non-GAAP measure) was $8.9 million, or $0.42 per diluted
    share, a 48.9% decrease

Third Quarter 2009 Results

Production for the third quarter of 2009 totaled 2.0 Bcfe (21.8 MMcfe/d), compared to 2.1 Bcfe (22.6 MMcfe/d) produced in the third quarter of 2008, a decrease of 3.7%. Production decreased 12.2% in the third quarter of 2009, compared to second quarter 2009 production of 2.3 Bcfe (25.1 MMcfe/d) due to decreased drilling activity and the natural decline of our tight gas fields. Third quarter 2009 production was 75% natural gas and 25% oil and NGLs, compared to 76% natural gas and 24% oil and NGLs in the third quarter of 2008.

Revenues for the third quarter of 2009 totaled $8.8 million, compared to revenues of $22 million for the third quarter of 2008. Revenues for the third quarter of 2009 were negatively impacted by a sharp decline in realized commodity prices over the prior year quarter. Average realized natural gas, oil and NGL prices for the third quarter of 2009, before the effect of commodity derivatives, were $3.32 per Mcf, $63.49 per Bbl and $29.72 per Bbl, respectively, compared to $9.10 per Mcf, $110.61 per Bbl and $56.64 per Bbl, respectively, for the third quarter of 2008. The Company's average realized price, including the effect of commodity derivatives, was $6.52 per Mcfe for the third quarter of 2009, compared to $10.49 per Mcfe for the third quarter of 2008, a decrease of 37.8%. Of the $13.2 million decrease in revenues, approximately $12.5 million was attributable to a decrease in oil and gas prices and approximately $749,000 was attributable to a reduction in production volumes.

Net loss for the third quarter of 2009 was $3.1 million, or $(0.15) per diluted share, compared to net income of $19.8 million, or $0.95 per diluted share, for the third quarter of 2008. Net loss for the third quarter of 2009 included a pre-tax, unrealized loss on commodity derivatives of $6.4 million.

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