A Caring Approach Community We are passionate about investing our time and money to improve the lives of those around us who are in need. Currently, our efforts focus on supporting the health and well-being of children and youth in the communities where we operate. We realize that these young people will soon be our future leaders. Employees lead these charitable efforts, seeking out organizations and initiatives they wish to support, and often times, their efforts are supplemented with generous sponsorships from Approach. Recent initiatives include construction of wooden playground equipment at the Ozona Community Center, which provides daycare services in our core operational area. We have also been a supporter of the Special Olympics, a non-profit that helps young people with disabilities foster a sense of success through sports competition, as well as the Carley J. Rutledge Sarcoma Foundation, an organization focused on attaining better treatment and care of young people with cancer. Our employees have also led toy and food drives to donate to the Fort Worth Ronald McDonald House and Cook Children’s Hospital, and these efforts have been supported with corporate funds. Environment At Approach, our dedication to environmental stewardship is evidenced throughout the organization. With a focus on continuous improvement, our field operations staff is embracing the latest in technologies, many of which help us to reduce our environmental impact. For example, we drill multiple wells from a single drilling pad, a process that greatly reduces surface disturbance when compared to historical drilling methods. In addition, we are tapping into non-potable water sources to use in our drilling activities, reducing our fresh water consumption. In another effort to preserve the precious West Texas water supplies, we are implementing water reuse and recycling - a process by which produced water is captured in water containment systems, treated and reused. We are also in the process of installing vapor capture systems designed to improve air quality around our facilities. Finally, we are eliminating a substantial amount of truck traffic in our area of operations, by installing oil and water transportation pipelines. Our goal is to meet or exceed all regulations and requirements pertaining to our operations. More than that, our efforts are driven by responsible and caring employees who want to preserve the beauty and viability of our environment for generations to come. Safety/Health Safety is a core value at Approach and ranks among our highest priorities. We have a highly involved and committed management team that seeks to establish a proactive safety culture, focused on preventing incidents rather than responding to them. While we are proud of our strong safety track record, we continuously seek to improve. When a new employee arrives at Approach, we begin safety training on their first day of employment. We then match the employee with a mentor who supervises, instructs and models proper safety practices. Ongoing safety training includes monthly meetings to reinforce our safety protocols and drive increased awareness throughout the organization. In addition, we regularly conduct facility inspections and proactively review all job responsibilities in an attempt to identify potential safety hazards before an incident occurs. Our goal is to be an industry leader in the area of safety and to safeguard our employees, contractors, vendors and citizens who work and live near our operations.