<SEC-DOCUMENT>0001193125-18-009155.txt : 20180511
<SEC-HEADER>0001193125-18-009155.hdr.sgml : 20180511
<ACCEPTANCE-DATETIME>20180111175755
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-18-009155
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20180111

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Approach Resources Inc
		CENTRAL INDEX KEY:			0001405073
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				510424817
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		ONE RIDGMAR CENTRE
		STREET 2:		6500 WEST FREEWAY, SUITE 800
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76116
		BUSINESS PHONE:		8179899000

	MAIL ADDRESS:	
		STREET 1:		ONE RIDGMAR CENTRE
		STREET 2:		6500 WEST FREEWAY, SUITE 800
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76116
</SEC-HEADER>
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<TYPE>CORRESP
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<TD VALIGN="bottom" ALIGN="right"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:9pt; font-family:Times New Roman" ALIGN="right">One Ridgmar Centre</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:9pt; font-family:Times New Roman" ALIGN="right">6500 West Freeway, Suite 800</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:9pt; font-family:Times New Roman" ALIGN="right">Fort
Worth, Texas 76116</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:9pt; font-family:Times New Roman" ALIGN="right">817.989.9000 <I>telephone</I></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:9pt; font-family:Times New Roman" ALIGN="right">817.989.9001 <I>facsimile</I></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:9pt; font-family:Times New Roman" ALIGN="right">www.approachresources.com</P></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>FOIA Confidential Treatment Requested by Approach Resources Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Pursuant to 17 C.F.R. &#167;200.83 (Rule 83) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Omitted information marked by bracketed asterisks has been filed </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>under separate cover with the Commission </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">January&nbsp;11, 2018 </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B></B><B><I><U>Via EDGAR
Transmission</U></I></B><B> </B></P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;H. Roger Schwall </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Assistant Director </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange
Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street,
N.E., Mail Stop 4628 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>Re:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Approach Resources Inc. </B></TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Form
<FONT STYLE="white-space:nowrap">10-K</FONT> for the Fiscal Year Ended December&nbsp;31, 2016 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Filed March&nbsp;10,
2017 </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>File <FONT STYLE="white-space:nowrap">No.&nbsp;001-33801</FONT> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Mr.&nbsp;Schwall: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This letter sets forth
the responses of Approach Resources Inc. (the &#147;Company&#148; or &#147;we,&#148; &#147;us&#148; or &#147;our&#148;) to the comments of the staff (the &#147;Staff&#148;) of the Securities and Exchange Commission (the &#147;Commission&#148;) with
regard to our annual report on Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the fiscal year ended December&nbsp;31, 2016 (our &#147;2016 Form <FONT STYLE="white-space:nowrap">10-K&#148;).</FONT> The Staff&#146;s comments were provided to
the Company in a letter dated December&nbsp;28, 2017. For the convenience of the Staff, the text of each comment is reproduced in its entirety followed by our response. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to 17 C.F.R. &#167; 200.83 (&#147;Rule 83&#148;), the Company requests confidential treatment for portions of its responses to the
Staff&#146;s comments 3 and 5. Specifically, the Company requests that the portions of these responses marked by bracketed asterisks (&#147;[***]&#148; or &#147;[*]&#148;), in place of which confidential information has been included in the
unredacted version of this letter that was delivered under separate cover to the Staff (to the attention of Mr.&nbsp;Hodgin), be maintained in confidence, not be made part of any public record and not be disclosed to any person as they contain
confidential information. The Company has delivered an unredacted version of this letter separately to the Staff, which included the confidential information omitted from this letter. If the Staff receives a request for access to the confidential
portions herein, whether pursuant to the Freedom of Information Act or otherwise, the Company respectfully requests that we be notified immediately of such request so that we may further substantiate this request for confidential treatment under
Rule 83. Please address any notification of a request for access to such information to me by telephone at <FONT STYLE="white-space:nowrap">(817)&nbsp;989-9000</FONT> with a copy by mail to my attention at One Ridgmar Centre, 6500 West Freeway,
Suite 800, Fort Worth, TX 76116, and to Josh Dazey, Vice President&nbsp;&amp; General Counsel, by telephone at (817) <FONT STYLE="white-space:nowrap">989-9000</FONT> and by facsimile at <FONT STYLE="white-space:nowrap">(817)&nbsp;989-9001.</FONT>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>FOIA Confidential Treatment Requested by Approach Resources Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Pursuant to 17 C.F.R. &#167;200.83 (Rule 83) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Omitted information marked by bracketed asterisks has been filed </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>under separate cover with the Commission </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for Fiscal Year Ended December&nbsp;31, 2016
</U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Properties, page 31 </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Proved
Undeveloped Reserves, page 33 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I>1.</I></TD>
<TD ALIGN="left" VALIGN="top"><I>Expand the disclosure relating to your proved undeveloped reserves to provide an appropriate narrative explanation for the changes relating to each line item entry within your reconciliation, such as extensions and
discoveries, acquisitions or divestitures, and revisions of previous estimates. Your explanation should reconcile the overall change for the line item by separately identifying and quantifying each factor, including any offsetting factors, so that
the change in net reserves between periods is fully explained. Your disclosure of revisions in the previous estimates of reserves in particular should identify such factors as changes caused by commodity prices, well performance, unsuccessful and/or
uneconomic proved undeveloped locations or the removal of proved undeveloped locations due to changes in a previously adopted development plan. Refer to Item 1203(b) of Regulation <FONT STYLE="white-space:nowrap">S-K.</FONT></I> </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response:&nbsp;&nbsp;&nbsp;&nbsp;We acknowledge the Staff&#146;s comment, and respectfully refer the Staff to the disclosure on page 32 of our 2016 Form <FONT
STYLE="white-space:nowrap">10-K</FONT> under the heading &#147;Proved Oil and Gas Reserves,&#148; as well as Note 10 on page 27 of the financial pages accompanying our 2016 Form <FONT STYLE="white-space:nowrap">10-K</FONT> under the heading
&#147;Proved Reserves.&#148; In both places, we provide a narrative explanation of the changes made to proved reserves, inclusive of proved undeveloped (&#147;PUD&#148;) reserves, including the impact of cost reductions, updated well performance,
technical parameters and commodity prices. We believe this narrative explanation conforms with the requirements of Item 1203(b) of Regulation <FONT STYLE="white-space:nowrap">S-K.</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition, we acknowledge that additional disclosure may be useful to investors. As a result, we propose to enhance our disclosure in future
filings, beginning with our annual report on Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the year ending December&nbsp;31, 2017 (our &#147;2017 Form <FONT STYLE="white-space:nowrap">10-K&#148;),</FONT> which will be filed by the Company on
or before March&nbsp;16, 2018, by including additional information similar to the information provided below, under the table on page 33 labeled &#147;Proved Undeveloped Reserves&#148; that reconciles our beginning and end of year balances of
estimated PUD reserves, separately from the reconciliation of proved oil and gas reserves: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Extensions and discoveries
relating to proved undeveloped reserves for 2016 were 15.9 MMBoe, primarily attributable to our development of Project Pangea in the Wolfcamp shale oil resource play in the Permian Basin.&nbsp;During 2016, we converted 1.4 MMBoe of proved
undeveloped reserves to proved developed reserves, and reclassified 22.4 MMBoe of proved undeveloped reserves to unproved reserves. The reserves reclassified are attributable to 54 horizontal well locations in Project Pangea that are no longer
expected to be developed within&nbsp;five years&nbsp;from their initial booking, as required by SEC rules. Revisions included the reclassified reserves, with an increase of&nbsp;1.4&nbsp;MMBoe resulting from cost reductions, updated well performance
and technical parameters, offset by a decrease of&nbsp;0.8&nbsp;MMBoe due to lower commodity prices. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>FOIA Confidential Treatment Requested by Approach Resources Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Pursuant to 17 C.F.R. &#167;200.83 (Rule 83) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Omitted information marked by bracketed asterisks has been filed </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>under separate cover with the Commission </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I>2</I>.</TD>
<TD ALIGN="left" VALIGN="top"><I>You disclose that you converted 1,376 Mboe of proved undeveloped reserves to developed status during 2016, equating to approximately 1.3% of the total prior <FONT STYLE="white-space:nowrap">year-end</FONT> proved
undeveloped reserves. In comparison, you disclose 97,502 MBoe in total proved undeveloped reserves to be converted to developed status over the next five years. Given that this rate of development, if sustained, would not be sufficient to develop
your reserves over the next five years, disclose the reasons for the limited progress made during 2016 and explain how your plans relating to the conversion of your remaining proved undeveloped reserves have changed to ensure that your reserve
estimates adhere to the criteria in Rule <FONT STYLE="white-space:nowrap">4-10(a)(31)(ii)</FONT> of Regulation <FONT STYLE="white-space:nowrap">S-X.</FONT> Please note, disclosure under Item 1203(c) of Regulation
<FONT STYLE="white-space:nowrap">S-K</FONT> should inform readers regarding progress, or lack thereof, and any factors that impacted progress in converting proved undeveloped reserves to developed status.</I> </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>2016 PUD conversion ratio </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">All PUD reserves included in our 2016 Form <FONT STYLE="white-space:nowrap">10-K</FONT> had a development plan that provided for such PUD
reserves to be drilled before the end of 2021. Due to the substantial drop in commodity prices continuing through 2016, our actual capital expenditures of $19.8&nbsp;million in 2016 were significantly less than originally budgeted. As an example, on
November&nbsp;3, 2015, around when we began our reserves review process, calendar year 2016 NYMEX WTI crude oil and Henry Hub natural gas contracts averaged $51.56 per barrel and $2.57 per MMBtu, respectively. By the end of March 2016, the prompt
month crude oil and natural gas contracts were $38.34 per barrel and $1.96 per MMBtu, respectively, and they remained depressed thereafter. When we prepared 2016 reserves, our approved <FONT STYLE="white-space:nowrap">5-year</FONT> development plan
anticipated a capital budget of $85&nbsp;million, which we believed was warranted based on management&#146;s view of future commodity prices and the anticipated capital available to the Company (our capital spending during 2014 and 2015 was
$390.5&nbsp;million and $151.2&nbsp;million respectively). As the commodity price decline continued into 2016, we believed the unexpected depth and duration of the commodity price decline warranted a reduction in our capital budget, and revised our
plan to align lower capital expenditures with the resulting lower cash flows. As a result, during 2016, we had capital expenditures of $19.8&nbsp;million, and focused only on our most economic wells and holding our core leasehold acreage. As prices
failed to recover in the manner anticipated throughout 2016, and as management focused on spending largely within the Company&#146;s cash flows, we were unable to increase our capital budget as originally anticipated. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Conversion of remaining reserves </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We note
your comment that the 2016 rate for development of our PUD reserves is 1.3% and respectfully submit that the aggregate percentage of our PUD reserves converted to proved developed reserves is not indicative of future rates or trends, and our <FONT
STYLE="white-space:nowrap">5-year</FONT> development plan anticipates increasing our rate of PUD conversions. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">To put us in a position to
increase our capital expenditures, and thus our PUD conversion ratio, as commodity prices continued to recover, in 2016 management focused on reducing debt levels. In late 2016, we entered into an agreement with our largest holder of senior
unsecured debt to exchange $130.6&nbsp;million of outstanding 7.00% Senior Notes due 2021 (the &#147;Notes&#148;), representing all of the Notes beneficially owned by them (approximately 56.7% of the outstanding principal amount of the Notes), for
</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>FOIA Confidential Treatment Requested by Approach Resources Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Pursuant to 17 C.F.R. &#167;200.83 (Rule 83) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Omitted information marked by bracketed asterisks has been filed </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>under separate cover with the Commission </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
an aggregate of 39,165,600 shares of Company common stock, reducing our overall outstanding debt. Also, in early 2017, we exchanged an additional $14.5&nbsp;million of Notes for 4,009,728 shares
of Company common stock. We believe these transactions help position the Company to increase its rate of development in future years as commodity prices recover, and have aligned our approved <FONT STYLE="white-space:nowrap">5-year</FONT> plan
accordingly. In 2017 we increased our rate of drilling and completions, we increased our capital budget to $50&nbsp;million, and we plan to continue to increase our rate of development and our capital budget as commodity prices continue to recover.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Further, we have a history of investment in, and obtaining financing for, our development projects. Since 2012 we have invested over
$1.1&nbsp;billion of capital in our Pangea development project, with capital expenditures of $151.2&nbsp;million, $390.5&nbsp;million, $296.4&nbsp;million and $284.6&nbsp;million in 2015, 2014, 2013 and 2012, respectively. In addition, inclusive of
our IPO in 2007 and our revolving credit facility, we have raised over $950&nbsp;million from public equity and debt markets. Our deleveraging actions in 2016 and 2017 position us to continue to access capital as commodity prices recover. In
addition to obtaining external financing, we anticipate using cash flow from operations to finance our development project, with operating cash flows in 2017 being dedicated to drilling and completion activities. More specifically, our current
development schedule aligns with management&#146;s view of forward looking commodity prices and anticipated capital availability. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I>3.</I></TD>
<TD ALIGN="left" VALIGN="top"><I>Provide us with your development schedule, indicating for each future annual period, the number of gross wells to be drilled along with the net quantities of proved reserves and estimated capital expenditures
necessary to convert all of the proved undeveloped reserves disclosed as of December&nbsp;31, 2016 to developed status.</I> </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response:&nbsp;&nbsp;&nbsp;&nbsp;We acknowledge the Staff&#146;s comment, and provide the requested table below: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:9pt; font-family:Times New Roman"><B>Year</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:9pt; font-family:Times New Roman" ALIGN="right"><B>Well Count</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="right" STYLE="border-bottom:1.00pt solid #000000"><B>Net Capex</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:9pt; font-family:Times New Roman" ALIGN="right"><B>Net Boe</B></P></TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2017</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">$</TD>
<TD VALIGN="top" ALIGN="right"> 55,000,000</TD>
<TD NOWRAP VALIGN="top">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2018</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">$</TD>
<TD VALIGN="top" ALIGN="right">153,317,500</TD>
<TD NOWRAP VALIGN="top">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2019</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">$</TD>
<TD VALIGN="top" ALIGN="right">262,173,000</TD>
<TD NOWRAP VALIGN="top">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2020</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">$</TD>
<TD VALIGN="top" ALIGN="right"> [***]</TD>
<TD NOWRAP VALIGN="top">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2021</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">$</TD>
<TD VALIGN="top" ALIGN="right"> [***]</TD>
<TD NOWRAP VALIGN="top">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Condensed oil recovery at compressor stations</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">[***]</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">$</TD>
<TD VALIGN="top" ALIGN="right"> [***]</TD>
<TD NOWRAP VALIGN="top">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right">[***]</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition, pursuant to Rule <FONT STYLE="white-space:nowrap">12b-4</FONT> under the Securities Exchange Act
of 1934, as amended, we are supplementally furnishing the requested information in digital format on a flash drive. We hereby request that the flash drive be returned to us upon completion of the Staff&#146;s review, and that pending its return it
be afforded confidential treatment and not be made part of any public record and not be disclosed to any person, as the flash drive contains confidential information, disclosure of which would cause the Company competitive harm. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>FOIA Confidential Treatment Requested by Approach Resources Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Pursuant to 17 C.F.R. &#167;200.83 (Rule 83) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Omitted information marked by bracketed asterisks has been filed </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>under separate cover with the Commission </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
Approach Resources Inc. - Page
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<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I>4.</I></TD>
<TD ALIGN="left" VALIGN="top"><I>We note disclosure in your current Form <FONT STYLE="white-space:nowrap">10-K</FONT> and in each of your annual filings since December&nbsp;31, 2012 indicating that you reclassified previously disclosed proved
undeveloped reserves to unproved reserves for locations that are no longer expected to be developed within five years of their initial disclosure as proved undeveloped reserves.</I> </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Provide us with an explanation in reasonable detail explaining the reason for the successive nature of these revisions. </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Refer to the guidance associated with Question 131.04 in our Compliance and Disclosure Interpretations (C&amp;DIs), and tell us the extent
to which all of the proved undeveloped locations in the development schedule as of December&nbsp;31, 2016, 2015, 2014, 2013 and 2012 were part of an adopted development plan that was reviewed and approved by management, and approved by the Board of
Directors, if such approval is required. You may find the C&amp;DIs on our website at the following address: </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>http://www.sec.gov/divisions/corpfin/guidance/oilandgas-interp.htm. </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response:&nbsp;&nbsp;&nbsp;&nbsp;We acknowledge the Staff&#146;s comment regarding reclassification of PUDs to unproved reserves. Annually, beginning in
November of each year, our engineers, working with management, begin the process of assembling our <FONT STYLE="white-space:nowrap">5-year</FONT> development plan. This plan, when assembled, is approved by management, and the resulting annual
capital budget is approved for the upcoming year by our board of directors. During each of the referenced periods, we confirmed that our <FONT STYLE="white-space:nowrap">5-year</FONT> development plan was an adopted development plan that satisfied
the requirements of a final investment decision described in Question 131.04 of the Commission&#146;s Compliance and Disclosure Interpretations. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Upon its initial public offering in 2007, the Company was primarily a vertical well drilling exploration and production company, with primary
targets of tight gas in the Canyon sands formation and oil and gas in the deeper Strawn and Ellenburger formations. In late 2010, the Company announced a discovery in the shallower Wolfcamp shale formation, with three zones of the Wolfcamp being
prospective for oil and gas through multi-zone, vertical completions and recompletions combining the Canyon, Wolfcamp, Dean and Clearfork formations, as well as horizontal Wolfcamp drilling.&nbsp;In 2012, the Company began drilling more horizontal
Wolfcamp wells, while continuing to complete multiple zones in new vertical wells and recompleting new zones in existing vertical wells. Over the course of the next three years, the Company&#146;s management began to believe that horizontal drilling
would provide better economics, result in higher recoveries of available <FONT STYLE="white-space:nowrap">in-place</FONT> volumes, have a lower surface impact and be more environmentally friendly than a vertical drilling program. As a result, over
the referenced periods, as our geologists and engineers gathered more data regarding the possibilities and results of our horizontal drilling program, we began phasing out our vertical drilling program. This decision was not made all at once, but
rather gradually as we continued to gather data and review our vertical and horizontal well results. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This decision to focus more on our
horizontal drilling program resulted in 113 vertical wells (8.9 MMBoe) not being drilled in favor of other, potentially more economic horizontal projects, and those vertical wells were removed from our development plan in 2012. In 2013, we
accelerated our focus on </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>FOIA Confidential Treatment Requested by Approach Resources Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Pursuant to 17 C.F.R. &#167;200.83 (Rule 83) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Omitted information marked by bracketed asterisks has been filed </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>under separate cover with the Commission </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
Approach Resources Inc. - Page
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
drilling horizontal wells, further <FONT STYLE="white-space:nowrap">de-emphasizing</FONT> our vertical drilling program. This resulted in our determination that another 88 vertical wells (7.8
MMBoe) would not be drilled within the required <FONT STYLE="white-space:nowrap">5-year</FONT> window. In 2014, as the Company continued its focus on its horizontal drilling program, 67 vertical wells were downgraded from proved to <FONT
STYLE="white-space:nowrap">non-proved</FONT> (5.8 MMBoe) as they were removed from our development plan. In addition, 10 horizontal wells were downgraded from proved to <FONT STYLE="white-space:nowrap">non-proved</FONT> (3.5MMBoe) as they were
removed from our development plan. In 2015, following several years of data and a management determination to terminate the vertical drilling program entirely in order to allow the company to focus on the more economic horizontal wells, the Company
wrote off all remaining vertical PUDs. In 2015, as a result of the termination of the vertical program, 25 vertical PUDs were downgraded (1.7MMBoe). Also, in 2015, 26 horizontal PUDs were downgraded (10.2MMBoe) as they were not converted within the
five-year window. In 2016, as a result of the limited drilling program discussed above in response to Comment 2, the Company dropped down to a 1 rig drilling program. As a result of the anticipated reduced 2016 capital expenditures arising from the
commodity price decline in late 2015 and continuing into 2016, management determined that 54 horizontal PUDs could not be drilled within the required <FONT STYLE="white-space:nowrap">5-year</FONT> schedule, and thus these PUDs were removed from our
development plan (22.4 MMBoe). </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I>5.</I></TD>
<TD ALIGN="left" VALIGN="top"><I>Please additionally provide us with a schedule by year beginning with December&nbsp;31, 2012 and for each subsequent <FONT STYLE="white-space:nowrap">year-end,</FONT> through December&nbsp;31, 2016 showing:</I>
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><I>The date of initial disclosure for each proved undeveloped location that was reclassified and removed from the proved undeveloped reserves at each balance sheet date.</I> </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><I>The total number of gross proved undeveloped locations at each balance sheet date that were scheduled to be drilled and completed and the total number of such locations that were actually drilled and completed in the
subsequent twelve month period.</I> </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><I>The total capital expenditure amounts relating to the proved undeveloped locations that were scheduled to be drilled and completed in the subsequent twelve month period and the actual amounts incurred in the
subsequent twelve month period.</I> </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><I>Detailed explanations for all material changes to the previously scheduled activities.</I> </TD></TR></TABLE>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Furnish the materials requested in comments 3 and 5 in hard copy format and on digital media such as a flash drive. If you would like to
have these supplemental materials returned to you, comply with the provisions of Rule 418(b) of Regulation C, which provides for the return of supplemental information as long as certain express conditions are met. </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>If you wish to request confidential treatment of those materials which they are in our possession, follow the procedures set forth in Rule
83 of the Freedom of Information Act. </I></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Please direct these items to: </I></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>U.S. Securities and Exchange Commission </I></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>100 F Street NE </I></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Mail
Stop 4628 </I></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Washington, DC 20549-4628 </I></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Attn: John Hodgin, Petroleum Engineer </I></P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>FOIA Confidential Treatment Requested by Approach Resources Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Pursuant to 17 C.F.R. &#167;200.83 (Rule 83) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Omitted information marked by bracketed asterisks has been filed </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>under separate cover with the Commission </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
Approach Resources Inc. - Page
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response:&nbsp;&nbsp;&nbsp;&nbsp;Please refer to the attached schedules 5.1 and 5.2.3 that are responsive to
the first 3 bullet point requests in this Comment&nbsp;5. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition, pursuant to Rule <FONT STYLE="white-space:nowrap">12b-4</FONT>
under the Securities Exchange Act of 1934, as amended, we are supplementally furnishing the requested information in digital format on a flash drive. We hereby request that the flash drive be returned to us upon completion of the Staff&#146;s
review, and that pending its return it be afforded confidential treatment and not be made part of any public record and not be disclosed to any person, as the flash drive contains confidential information, disclosure of which would cause the Company
competitive harm. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We respectfully refer the Staff to our response to Comment 4 for an explanation of the proved undeveloped locations
that were reclassified and removed from the proved undeveloped reserves at each referenced balance sheet date. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">With respect to material
changes to the PUDs scheduled to be drilled within 12 months of each of the referenced balance sheet dates, and the PUDs actually drilled and completed within those 12 months, as well as the related total capital expenditures scheduled and total
capital expenditures incurred, we respectfully acknowledge the Staff&#146;s comment. The near-term drilling schedule for PUDs is subject to a variety of factors beyond our control, although we anticipate our PUD conversion rate will increase in the
future, and believe it has trended upward over the prior 5 years, with 60% and 100% of our wells completed in 2016 and 2017 being converted PUDs, respectively. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In 2012, as discussed in more detail in response to Comment 4, we began a gradual strategic shift towards our horizontal drilling program and
away from our historically, vertical drilling program. As noted in response to Comment 4, this resulted in vertical PUDs being reclassified, but it also resulted in vertical PUDs scheduled for drilling within 12 months of December&nbsp;31, 2012,
being passed over in favor of horizontal wells that offered potentially better economics. This resulted in budgeted drilling and completion (&#147;D&amp;C&#148;) costs that had initially been allocated to vertical PUDs instead being redirected to
other locations. Although total D&amp;C costs incurred in 2012 were $251.4&nbsp;million ($93&nbsp;million in excess of the scheduled D&amp;C costs for 2012), the transition away from our vertical program resulted both in fewer PUDs being converted
as a percentage of wells drilled and completed, and in some vertical PUDs being reclassified. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition to the transfer from our
vertical program, the scheduled PUDs in 2012, 2013 and 2014 were not completed due to a number of factors. Short-term drilling program changes were made throughout the year based on our continued understanding of our properties, well economics and
leasehold considerations. Although management has made an investment decision to drill each booked PUD within five years, in the short term we have prioritized <FONT STYLE="white-space:nowrap">non-PUD</FONT> locations for economic and leasehold
reasons in order to maximize shareholder value. For example, in 2012, well results from our research and development program indicated we were able to achieve better results developing multiple benches in adjacent locations. As we became more
comfortable with this approach, drilling of previously scheduled PUDs was delayed in favor of probable locations adjacent to PUD locations that would allow us to develop multiple benches, but avoid the offsetting frac complications. Further,
external factors including commodity prices, capital availability, increasing service costs and availability of rigs in certain areas may impact our short-term expenditures and drilling schedule. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>FOIA Confidential Treatment Requested by Approach Resources Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Pursuant to 17 C.F.R. &#167;200.83 (Rule 83) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Omitted information marked by bracketed asterisks has been filed </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>under separate cover with the Commission </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
Approach Resources Inc. - Page
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As we have developed our assets and knowledge of our field, we have been able to follow our
short-term drilling schedule more consistently. In 2015, although our actual D&amp;C costs were below our budgeted D&amp;C costs, largely due to the commodity price decline in 2015 and the resulting decline in drilling activity, 57% of our completed
locations were PUDs. In 2016, 60% of our completed locations were PUDs and in 2017, 100% of our completed locations were PUDs. We anticipate moving forward that we will be able to more consistently follow our short-term drilling schedule. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Oil and Gas Production, Production Prices and Production Costs, page 36 </U></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I>6.</I></TD>
<TD ALIGN="left" VALIGN="top"><I>Tell us how you considered the requirements with regard to disclosure of production, by final product sold, for each field and/or geological formation that contains 15% or more of your total proved reserves. Refer to
Item 1204(a) of Regulation <FONT STYLE="white-space:nowrap">S-K</FONT> and Rule <FONT STYLE="white-space:nowrap">4-10(a)(15)</FONT> of Regulation <FONT STYLE="white-space:nowrap">S-X.</FONT></I> </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response:&nbsp;&nbsp;&nbsp;&nbsp;We acknowledge the Staff&#146;s comment, but believe that 99.79% of our production is attributable to a single field or
geologic formation located in the Southern Midland Basin of the greater Permian Basin in West Texas. The Company produces an immaterial amount (0.21% of total production) from a second field: North Bald Prairie located in the East Texas Basin.
Substantially all of our proved reserves are located within a limited geographic area&#151;Crockett and Schleicher Counties, Texas, which we believe to be grouped on or related to the same individual basin architecture and/or stratigraphic interval.
This single producing asset is covered by the Holt Ranch Consolidated and the Ozona, N.E. (Canyon 7520) field rules as set by the Railroad Commission of Texas with overlapping correlative intervals for proration purposes (3,900 feet to 8,425 feet
for Holt Ranch Consolidated, and 3,030 feet to 8,820 feet for Ozona, N.E. (Canyon 7520). As such, substantially all of our production can be treated as relating to a single operational field. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>FOIA Confidential Treatment Requested by Approach Resources Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Pursuant to 17 C.F.R. &#167;200.83 (Rule 83) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Omitted information marked by bracketed asterisks has been filed </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>under separate cover with the Commission </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
Approach Resources Inc. - Page
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Please direct any questions or additional comments regarding this letter to the undersigned
at (817) <FONT STYLE="white-space:nowrap">989-9000.</FONT> </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD WIDTH="100%"></TD></TR>


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<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Sincerely,</P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">/s/ Sergei Krylov</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Sergei Krylov</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Executive Vice President and Chief Financial Officer</P></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Enclosures </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Schedule 3 &#150; [***]&nbsp;&nbsp;&nbsp;&nbsp; </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Schedule 5.1 &#150; [***] </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Schedule 5.2.3 &#150; [***] </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top">Brad Skinner, Senior Assistant Chief Accountant </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">John Hodgin, Petroleum
Engineer </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Wei Lu, Staff Accountant </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">J. Ross Craft, Chairman&nbsp;&amp; Chief Executive Officer </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Wesley P. Williams, Thompson&nbsp;&amp; Knight LLP </P>
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