Huge Potential In This Shale Play

natural-gasSinochem, a Chinese oil company, recently paid $17,000 per acre for a plot in a little-known shale area called the Wolfcamp Shale. Everyone has heard of the Marcellus, Utica and Bakken shale areas, but Wolfcamp is just being developed and one little company has 152,000 acres and its cost was only $500 per acre.

Do the words “buy out” sound familiar?

The company is Approach Resources Inc.(NASDAQ:AREX). It was formed in 2002 by a group of oil and gas industry veterans, and analysts say even without a buyout offer, based on 2014 earnings estimates, it could run up 50%.

AREX and its Wolfcamp acreage has something no other shale play has: multiple

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