a strategy focused
on creating
stockholder value
At Approach, we focus on creating stockholder value by growing reserves and production through developing our core properties, operating as a low-cost producer and making strategic acquisitions, while maintaining financial flexibility. Here we outline the key components of our strategy.
Developing our low risk, multi-year drilling inventory
Our core properties, located in the Permian Basin of West Texas, are characterized by multiple prospective target formations and development opportunities. Focusing on our core properties allows us to develop operating, technical and regional expertise important to interpreting geological and operating trends and developing economies of scale.
Evaluating and developing our Wolffork oil shale resource play
We identified the Wolfcamp Shale and Clearfork formations, which we refer to collectively as the “Wolffork,” through extensive regional mapping and whole-core data, 3-D seismic data from over 135,000 acres and well data from over 400 wellbores that we have drilled and completed while targeting the deeper zones across our acreage position in the Permian Basin. We refer to our Wolffork drilling program in the Permian Basin as Project Pangea.
Operating as a low cost producer
We strive to minimize our operating costs by concentrating our assets within geographic areas where we can consolidate operating control and thus create operating efficiencies. We currently operate all of our production and estimated proved reserves. Operating control allows us to better manage timing and risk as well as the cost of exploration and development, drilling and ongoing operations.
Completing strategic, complementary acquisitions
We continually review opportunities to acquire producing properties, undeveloped acreage and drilling prospects in our existing core area in the Permian Basin. We focus particularly on opportunities where we believe our operational and reservoir management and geological expertise in unconventional oil and gas properties will enhance value and performance.
Maintaining financial flexibility
Our financial results depend on many factors, particularly the price of oil, gas and NGLs. We believe in maintaining financial flexibility given the volatility of these prices, fluctuation in drilling and oilfield service costs and the risks involved in drilling. Further, a strong balance sheet and liquidity provide us with significant financial flexibility to pursue our long-term strategic and financial objectives.