Rosetta Resources

Rosetta Resources, within one year, shifted the company focus to the Eagle Ford Shale and is now set to continue full development of its Eagle Ford acreage. The company began selling legacy assets in 2010 and plans to allocate 90% of its capital spend to growing Eagle Ford production.  Rossetta’s Gates Ranch is the company’s largest lease and the target of current drilling activity.

Rosetta’s acreage is almost entirely in the gas-condensate or liquids-rich window of the Eagle Ford Shale.  The company has minor oil lease positions in La Salle County and Gonzales County.  Rosetta also has acreage prospective for the dry gas window of the play in Webb County and Southern La Salle County.  All wells utilize horizontal drilling and multi-stage completions.  Hydraulic fracturing (fracking) is needed across the company’s acreage for economic production rates.

Rosetta Resources (NASDAQ: ROSE) is an oil and gas exploration and production with a focus in the EAgle Ford Shale and the Bakken Shale in the Southern Alberta Basin of Montana.  The company has undergone a strategic shift over the past few years to move into these two liquids-rich plays. Eagle Ford drilling will be at the center of the company’s portfolio for years to come.  Rosetta’s headquarters is in Houston, Texas. The company Eagle Ford field offices in Laredo, TX, and Catarina, TX.

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Rosetta Resources Eagle Ford Shale Quarterly Commentary

November 7, 2012

During Q3 of 2012, Rosetta made capital investments of $188.4 million, drilling 25 gross wells in the Eagle Ford shale with a 100 percent success.  16 wells were completed. Five rigs were operated during the quarter.

Daily Eagle Ford Shale production grew 13 percent from Q2 of 2012, increasing from 32.2 mboe/d to 36.5 mboe/d.

Rosetta is currently conducting development drilling activities in four areas of the Eagle Ford shale.  In the Gates Ranch area, 15 gross wells were drilled and 12 were completed during the third quarter. Favorable well performance continues at 55-acre spacing. Approximately 344 of the estimated 428 Gates Ranch well locations remain to be completed.

Three oil wells were drilled on the Klotzman lease located in the Karnes Trough area. A total of eight Klotzman wells are currently on production and tied into the dedicated crude oil gathering, storage, and trucking terminal located in DeWitt County, Texas.

Drilling and completion activities are in progress on the central Dimmit County leases and at Briscoe Ranch where the first three-well pad was completed during the third quarter. Those three wells continue to perform in line with the recently released type curve for Briscoe Ranch. In the central Dimmit County area, Rosetta successfully tested its Lasseter & Eppright acreage, one of three leases on an 8,100-acre tract. Rosetta is the operator and holds a 100 percent working interest in the exploratory well. The Lasseter & Eppright 1 well is located in the oil window and was completed with a 5,404 ft lateral and 15 frac stages. The well was brought on-line on September 23, 2012 and tested at a seven-day gross stabilized rate of 667 b/d of oil, 1.8 mmcfd of residue gas, 262 b/d of NGLs for an equivalent rate of 1,228 boe/d.

As of September 30, 2012, Rosetta had completed a total of 107 horizontal Eagle Ford wells. About 11 percent of the Company’s identified Eagle Ford inventory is drilled and on production. At the end of the third quarter, 28 drilled wells were awaiting completion, 24 of which were drilled during the third quarter. Rosetta plans to complete 15 to 20 Eagle Ford wells during the fourth quarter and continue to operate five rigs in the play, including two to three rigs at Gates Ranch.

August 7, 2012

Production from the Eagle Ford shale grew 6 percent from the first quarter of 2012, increasing from 30.4 MBoe/d to 32.2 MBoe/d. The area accounted for 96 percent of Rosetta’s total production.

Rosetta has been evaluating Gates Ranch well-spacing performance in several areas of the lease with wells spaced from 425 to 565 feet apart, or 50 to 65 acres per well. The down-spaced areas continue to perform without interference. As a result, Rosetta has begun drilling its Gates Ranch program with wells spaced 475 feet apart or on roughly 55-acre spacing, a change from the previous 565 feet or 65-acre spacing. This increased well density will result in the ultimate development of roughly 428 wells of which an estimated 356 wells remain to be completed, representing a 29 percent growth in project inventory at Gates Ranch. Based on Rosetta’s current evaluation, the estimated ultimate recovery (“EUR”) of the down-spaced wells is projected to be approximately 1.67 million barrels of oil equivalent (“MMBoe”) gross per well or fully incremental reserves as compared to the original 100-acre spacing assumption.

Approximately one-half of Rosetta’s 2012 Eagle Ford activity is concentrated in areas outside of Gates Ranch. Drilling and completion operations are ongoing in the Karnes Trough, Briscoe Ranch, and central Dimmit County areas. During the second quarter, the Company began development at Briscoe Ranch with the drilling of the first three-well pad and completion activity is underway. Based on production data from the October 2011 Briscoe Ranch discovery well, the EUR is projected to be approximately 890 thousand barrels of oil equivalent (“MBoe”) gross per well (24% oil/36% NGLs) with 68 total wells to be developed. Utilizing this EUR, one typical Briscoe Ranch well has a before income tax net present value discounted at 10 percent (“BFIT NPV10″) of $6.9 million after capital recovery, assuming an oil price of $85 per barrel.

During the second quarter in the Karnes Trough area, four Klotzman oil wells were drilled and six were completed. A total of eight wells are currently on production. The average EUR estimate for Klotzman is approximately 665 MBoe gross per well (68% oil/13% NGLs) yielding a BFIT NPV10 of approximately $12.1 million per well after capital recovery, assuming an oil price of $85 per barrel.

In late July 2012, Rosetta began operations from its newly constructed crude oil gathering, storage, and trucking terminal located in DeWitt County, Texas. The facility will ultimately provide 10,000 to 12,000 barrels per day (“Bbls/d”) of capacity for the Klotzman oil lease in the Karnes Trough area. Additionally, Rosetta has firm gas transportation and processing capacity in place to meet planned total Eagle Ford production levels for at least the next two years.

As of June 30, 2012, Rosetta has completed a total of 91 horizontal Eagle Ford wells. About 10 percent of the Company’s identified Eagle Ford inventory is drilled and on production. At the end of the second quarter, 19 drilled wells were awaiting completion and tie-in to facilities, 17 of which were drilled during the second quarter. Also, eight producing wells were temporarily shut-in for offset fracturing activity. Rosetta plans to complete 16 Eagle Ford wells during the third quarter and continue to operate five rigs in the play, including two rigs at Gates Ranch.

May 8, 2012

Production for the quarter averaged an all-time quarterly record of 33.8 thousand barrels of oil equivalent per day (“MBoe/d”), up 31 percent from the same period in 2011 and six percent from the prior quarter. The year-over-year increase was primarily driven by production growth from the Eagle Ford shale, which averaged approximately 30.4 MBoe/d for the first quarter of 2012, up from 14.9 MBoe/d for the same period in 2011. Total liquids production also reached all-time high levels for the period, averaging 17.4 thousand barrels per day (“MBbls/d”) for the quarter.

Production from the Eagle Ford shale grew 11 percent from the fourth quarter of 2011, increasing from 27.4 MBoe/d to 30.4 MBoe/d. The area accounted for 90 percent of Rosetta’s total production for the quarter.

In April 2012, Rosetta began operations from its contracted crude oil gathering, storage, and trucking terminal located in Gardendale, Texas. The long-term agreement provides 25,000 barrels per day (“Bbls/d”) firm oil transportation capacity for Gates Ranch, Briscoe Ranch and Central Dimmit Countyproperties. Additionally, Rosetta has firm gas transportation and processing capacity in place to meet planned total production levels for at least the next two years.

The Company plans to complete 16 Eagle Ford wells during the second quarter and operate five rigs in the play. A new crude oil gathering, storage, and truck loading facility to serve the Karnes Trough area is scheduled to begin operations this summer. At quarter end, Rosetta had 14 drilled wells awaiting completion and tie-in to facilities.

As of March 31, 2012, Rosetta has completed a total of 75 horizontal Eagle Ford wells. Less than 10 percent of its identified Eagle Ford inventory is drilled and on production.

November 7, 2011

Rosetta successfully completed 12 Eagle Ford wells during the quarter ended September 30, 2011. As of September 30, 2011, the Company has completed 52 horizontal wells. During the third quarter, Rosetta operated three to four rigs in the Eagle Ford area. Rosetta is the operator and holds a 100 percent working interest in the following three wells drilled in new areas outside of Gates Ranch:

  • The Briscoe Ranch 1H well is located north of Gates Ranch in a 3,500-acre section of Rosetta’s leasehold in the condensate window in Dimmit County. The well was completed with a 5,500-foot lateral and 15 frac stages and brought on-line on October 26, 2011. The well tested at a gross stabilized rate of 850 Bbl/d of oil, 3.9 MMcf/d of residue gas, 490 Bbl/d of NGLs.
  • The Vivion 1H well is located in central Dimmit County in the oil window on an 8,100-acre tract. The well was completed with a 5,600-foot lateral and 15 frac stages and brought on-line on September 14, 2011. The well tested at a gross stabilized rate of 506 Bbl/d of oil, 436 Mcf/d of residue gas, 102 Bbl/d of NGLs.
  • The Klotzman #1 well is located on 1,900 acres in DeWitt County in the oil window. The well was completed with a 5,100-foot lateral and 15 frac stages and brought on-line on November 1, 2011. The well tested at a gross stabilized rate of 2,450 Bbl/d of oil, 2.0 MMcf/d of residue gas, 250 Bbl/d of NGLs.

Rosetta plans to complete 13 Eagle Ford wells during the fourth quarter and continue to operate four rigs in the area.

As Rosetta moves forward with the delineation, development, and down-spacing of its Eagle Ford leasehold, the total inventory portfolio in the area has grown 45 percent to 2.7 Tcfe compared to year-end 2010. The Company has identified roughly 800 Eagle Ford drilling locations based on well spacing plans between 60 and 80 acres. At a targeted pace of approximately 60 completions per year, Rosetta expects to develop its current Eagle Ford inventory over the next 10 to 15 years.

August 8, 2011

“EAGLE FORD SHALE

Rosetta successfully completed 9 Eagle Ford wells during the quarter ended June 30, 2011. Production from the area grew 45 percent from the first quarter of 2011, increasing from 89 MMcfe/d to 129 MMcfe/d. The Eagle Ford shale contributed 80 percent of Rosetta’s total production for the current quarter.

As of June 30, 2011, the Company has completed 40 horizontal wells. During the second quarter, Rosetta operated two to three rigs in the Eagle Ford area. The Company also initiated two separate infill drilling pilot programs at Gates Ranch to test the feasibility of 50-acre spacing. The first pilot program has been drilled and both pilots are expected to be drilled and completed by the end of the year. Rosetta plans to drill from 25 to 28 Eagle Ford wells during the remainder of the year and currently has three rigs operating in the Eagle Ford shale.”

May 6, 2011

“…Rosetta successfully completed nine Eagle Ford wells during the period ended March 31, 2011. Production from the area grew 31 percent from the fourth quarter of 2010, increasing from 68 MMcfe/d to 89 MMcfe/d. The Eagle Ford play contributed 58 percent of Rosetta’s total production for the quarter.

Overall Eagle Ford well performance continues to surpass expectations. The current Eagle Ford production rate as of May 2, 2011 was 120 MMcfe/d compared to a March 2011 exit rate of 94 MMcfe/d. As a result of increased volumes from Eagle Ford wells, the Company’s total annual production rate and exit rate guidance has been adjusted.

Through March 31, 2011, the Company has completed 31 horizontal wells which represent approximately seven percent of the potential net drilling locations. During the first quarter of 2011, Rosetta operated two rigs in the Eagle Ford area drilling nine horizontal wells. Rosetta plans to drill from 10 to 12 Eagle Ford wells during the second quarter and has recently added a third rig to test new areas in the play.

During the first quarter of 2011, Rosetta’s contracted crude oil gathering, storage, and trucking terminal located in Catarina, Texas began operations….”

Source: rosettaresources.com

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