In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Approach Resources Inc. (NASDAQ:AREX) reported that Wilks Brothers, Llc. has picked up 40,291,600 of common stock as of 2017-05-26.
The acquisition brings the aggregate amount owned by Wilks Brothers, Llc. to a total of 40,291,600 representing less than 46.70% stake in the company.
For those not familiar with the company, Approach Resources Inc. is an independent energy company. The Company is focused on the exploration, development, production and acquisition of unconventional oil and gas reserves in the Midland Basin of the greater Permian Basin in West Texas. The Company’s business segment is the exploration and production of oil, natural gas liquids (NGLs) and natural gas. The Company’s assets cover an area of approximately 126,000 net acres. Its proved reserves are approximately 166.6 million barrels of oil equivalent. The Company’s proved reserves are primarily located in Crockett and Schleicher Counties, Texas. The Company’s Permian Basin acreage is known as the Project Pangea. The Company owns and operates approximately 800 producing oil and gas wells in the Permian Basin. The Company, through a joint venture with EnCana Oil & Gas (USA) Inc., holds interests in the approximately 3,000 gross acre project in Limestone and Robertson Counties, Texas, in the East Texas Cotton Valley trend.
A glance at Approach Resources Inc. (NASDAQ:AREX)’s key stats reveals a current market capitalization of 229.59 Million based on 86.28 Million shares outstanding and a price at last close of $2.71 per share.
Looking at insider activity, there are a few transactions worth noting.
Specifically, on 2017-05-25, Wilks picked up 200,000 at a purchase price of $2.67. This brings their total holding to 34,151,300 as of the date of the filing.
On the sell side, the most recent transaction saw Smart unload 850 shares at a sale price of $28.06. This brings their total holding to 332,074.
It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Approach Resources Inc. (NASDAQ:AREX) as things move forward to see if its progress aligns with these transactions.
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