Approach Resources Inc. (NASDAQ: AREX) on April 8 announced that Sergei Krylov, who has served as the company’s Executive Vice President and Chief Financial Officer since joining the company in January 2014, has been appointed CEO, replacing J. Ross Craft, who has resigned from his role as the company’s Chairman and CEO. Krylov will also retain his duties as Chief Financial Officer. In addition, the company announced that Jim Crain, who has served as a director since June 2007, and also serves as Chairman of the Nominating and Corporate Governance Committee, has been appointed Chairman of the Board.
The company remains in discussions with Qingming Yang, the company’s President and Chief Operating Officer regarding his departure. Upon Yang’s departure, Troy Hoefer, the company’s Senior Vice President of Engineering, who has served the company since June 2013, will assume management of the company’s production and drilling operations.
The company also announced that J. Curtis Henderson, the company’s Chief Administrative Officer and Corporate Secretary, entered into a separation agreement with the company. Henderson will remain at the company for up to six months, and during this time will transition his responsibilities to the new management team members. Josh Dazey, who has served the company since January 2016 as Vice President, General Counsel and Assistant Secretary, will assume the primary responsibilities of Henderson over this period.
The combined compensation and benefits associated with Messrs. Craft, Yang and Henderson in 2018 represented approximately 19% of 2018 total corporate cash and non-cash general and administrative expenses.
Earlier this year, Fort Worth-based Approach announced it was in talks for restructuring.