Approach Resources inks $115.5 million sale agreement with Zarvona

By Caroline Salls

Pittsburgh, Sept. 4 – Approach Resources Inc. requested court approval to enter into an asset purchase agreement with Zarvona III-A, LP, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the court approved the sale of Approach’s assets to Alpine Energy Acquisitions, LLC on March 4, but Alpine terminated the sale agreement on March 26.

While it was ultimately able to settle a resulting lawsuit in a manner that generated more than $22 million in proceeds for the Approach estates, the company said the litigation took more than three months and ultimately resulted in the termination of the Alpine sale.

Now, Zarvona has agreed to buy substantially all of Approach’s assets for $115.5 million.

Zarvona is not entitled to a break-up fee or expense reimbursement if it is not ultimately the winning bidder.

Approach said it is seeking approval of the Zarvona agreement on an emergency basis “because the debtors face a shrinking liquidity runway to continue its operations in Chapter 11.”

A hearing is scheduled for Sept. 11.

Approach Resources is a Fort Worth-based oil and gas company. The company filed bankruptcy on Nov. 18, 2019 under Chapter 11 case number 19-36444.

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