Approach Resources Inc. (the “Company”) (NASDAQ: AREX) today announced that it has priced its previously announced underwritten public offering of 5,000,000 shares of common stock at a price to the public of $30.50 per share. The Company has granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock. The Company expects to issue and deliver the shares on September 25, 2012, subject to customary closing conditions. The offering is being made pursuant to an effective registration statement filed with the Securities and Exchange Commission (the “SEC”).
The Company intends to use the net proceeds from the offering primarily to fund its capital expenditures for the development of its Wolfcamp oil shale resource play and for general working capital needs. Pending these uses, the Company intends to repay outstanding borrowings under its revolving credit facility.
J.P. Morgan is acting as sole book-running manager for the offering and KeyBanc Capital Markets, RBC Capital Markets, Wells Fargo Securities, Scotiabank / Howard Weil and Wunderlich Securities are acting as co-managers. The offering is being made only by means of a prospectus and related prospectus supplement, which have been filed with the SEC. Copies of the prospectus and the prospectus supplement relating to the offering, when available, may be obtained from J.P. Morgan Securities LLC, via Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, (866) 803-9204. An electronic copy of the prospectus and related prospectus supplement describing the terms of the offering will be available on the SEC’s website at www.sec.gov.
This news release is neither an offer to sell nor a solicitation of an offer to buy shares of common stock or any other securities of the Company and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.