By Jonathan Randles 

Approach Resources Inc. filed for bankruptcy Monday, the latest in a string of chapter 11 filings by financially distressed oil-and-gas drilling companies grappling with a decline in commodity prices.

Fort Worth, Texas-based Approach said it will explore a restructuring of its balance sheet, a going-concern sale of its business and other alternatives while under chapter 11 protection. The company has drilling operations in West Texas, having acquired oil and gas properties in the Permian Basin since 2004.

More than 30 oil-and-gas producers filed for bankruptcy this year through September, according to a report by the law firm Haynes & Boone LLP, already surpassing the number of filings for each of the previous two years.

Approach reported revenue of about $14.7 million and a net loss of approximately $13.6 million for the second quarter. The company reported total debt obligations of $407.2 million, according to papers filed in U.S. Bankruptcy Court in Houston.

Approach's business, like many other U.S. oil and gas producers, has been negatively impacted "by the prolonged and continuing period of commodity price decline and subsequent volatility," Approach President and CEO Sergei Krylov said in a declaration filed in court.

Mr. Krylov said the company has attempted to weather industry headwinds through layoffs, cost cutting and "substantial reductions" in its drilling program.

Approach has lined up a bankruptcy financing package from its existing lenders to fund its operations while under court protection. The financing includes $16.5 million in new money and lets lenders roll up, or pay off, $24.75 million under the company's existing credit agreement.

The loan package is being funded by eight banks including JPMorgan Chase Bank NA, KeyBank NA, Royal Bank of Canada, Frost Bank and Wells Fargo Bank NA, according to court papers.

Approach has filed several customary motions in the bankruptcy court to continue paying wages, taxes and other ordinary business costs as it eases into chapter 11.

Judge Marvin Isgur has been assigned to the bankruptcy case, number 19-136444.

Approach is being represented by Thompson & Knight LLP and has retained Alvarez & Marsal North America LLC as financial adviser and Perella Weinberg Partners LP to provide investment banking advice.

Write to Jonathan Randles at Jonathan.Randles@wsj.com

(END) Dow Jones Newswires

November 19, 2019 12:33 ET (17:33 GMT)