FORT WORTH, Texas, April 13, 2009 (GLOBE NEWSWIRE) -- Approach Resources Inc. (Nasdaq:AREX) today announced that its bank group has reaffirmed the Company's $100 million borrowing base and the bank group's $100 million commitment amount under the Company's revolving credit facility. The $100 million borrowing base and commitment amount have been in place since May 2008. The credit facility is provided by The Frost National Bank, as agent, JPMorgan Chase Bank, Fortis Capital Corp. and KeyBank. The next redetermination of the borrowing base is scheduled for October 2009. The revolving credit facility matures July 31, 2010.
In connection with the affirmation of the borrowing base, Approach and its bank group have amended the revolving credit facility to (i) increase the Eurodollar rate margin from a range of 1.25% to 2.00% to a range of 2.25% to 3.25% (depending on the then-current borrowing base usage), (ii) increase the base rate margin from a flat rate of 0.00% to a range of 1.25% to 2.25% (depending on the then-current borrowing base usage), and (iii) increase the unused commitment fee rate from 0.375% to 0.50%.
As of March 31, 2009, the Company had $47.7 million outstanding under its revolving credit facility.
Commodity Derivatives Update
The Company recently entered into a fixed price swap for 1,800,000 MMBtu of natural gas in 2010 at $5.85 per MMBtu NYMEX - Henry Hub. As of March 31, 2009, the Company had the following commodity derivatives positions outstanding:
Volume (MMBtu) $/MMBtu
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Period Monthly Total Floor Ceiling Fixed
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NYMEX - Henry Hub
Costless collars 2009 180,000 1,620,000 $ 7.50 $ 10.50
Costless collars 2009 130,000 1,170,000 $ 8.50 $ 11.70
Fixed price swap 2nd
- 4th quarter 2009 150,000 1,350,000 $ 4.50
Fixed price swap
2010(1) 150,000 1,800,000 $ 5.85
WAHA differential
Fixed price swaps 2009 200,000 1,800,000 $(0.61)
3rd quarter 2009 300,000 900,000 $(0.58)
Fixed price swaps 2010 415,000 4,980,000 $(0.71)
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(1) The Company entered into this 2010 fixed price swap on April 6,
2009.
About Approach Resources Inc.
Approach Resources Inc. is an independent energy company engaged in the exploration, development, production and acquisition of unconventional natural gas and oil properties in the United States and British Columbia. The Company focuses on natural gas and oil reserves in tight sands and shale. The Company operates or holds leases in Texas, Kentucky and New Mexico and has a non-operating interest in British Columbia. For more information about the Company, please visit www.approachresources.com. Please note that the Company routinely posts important information about the Company under the investor relations section of its web site.
The Approach Resources Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4320