Zarvona III-A, L.P. entered into an asset purchase agreement to acquire Substantially All Assets of Approach Resources Inc and Its Subsidiaries from Approach Resources, Inc. (OTCPK:AREX.Q), Approach Oil and Gas Inc., Approach Resources I, LP, Approach Operating, LLC and Approach Services, LLC for approximately $120 million on September 3, 2020. The consideration will be fully paid in cash and subject to certain customary purchase price adjustments. Simultaneously with the execution of the asset purchase agreement (APA), Zarvona deposited $11.55 million into escrow, and upon the closing of the transactions contemplated by the APA, such deposit will be released to the sellers and credited against the purchase price. The APA is subject to Court approval. Approach Resources Inc obtained Bankruptcy Court approval to sell its assets to Zarvona III-A, L.P. Thompson & Knight, LLP served as legal advisor to the sellers. Zarvona III-A, L.P. completed the acquisition Substantially All Assets of Approach Resources Inc and Its Subsidiaries from Approach Resources, Inc. (OTCPK:AREX.Q), Approach Oil and Gas Inc., Approach Resources I, LP, Approach Operating, LLC and Approach Services, LLC on September 30, 2020. Upon the closing of the transaction, all outstanding obligations under the Approach Resources Senior Secured Super Priority Debtor-In-Possession Credit Agreement (the “DIP Facility”) among Approach Resources, as borrower, the guarantors party thereto, JPMorgan Chase Bank, N.A., as administrative agent and issuing bank, and the financial institutions or other entities from time to time parties thereto as lenders, were repaid from proceeds of the transaction, all loan documents under the DIP Facility were terminated and all security interests and liens on the Debtors’ assets under the DIP Facility were released.