Approach closes on sale of southern Midland oil line interests

Fort Worth-based independent Approach Resources Inc. and partner Wildcat Permian Services LLC have closed on the previously reported sale of Wildcat to an affiliate of JP Energy Development LP for $210 million in cash. Cash proceeds to Approach are expected to be $108 million.

Approach’s core operations, production, and reserves are in the Permian basin in West Texas. The company operates 152,000 net acres in the Permian, targeting multiple oil and liquids-rich formations.

In January 2011, Approach added to its 109,000-net-acre position in the southern Midland basin by purchasing 10,900 contiguous net acres in northeastern Crockett County, Tex., from undisclosed private sellers (OGJ Online, Jan. 27, 2011).