Rosetta Resources plans to spend over 90% of its 2012 budget in the South Texas Eagle Ford. Of the $640 million the company plans to spend, $590 million will be spent to run four rigs with a target of drilling 60+ wells. The company has committed to and will have pipeline capacity of 263 mmcfe/d by mid-year 2012. Those are impressive numbers Eagle Ford plans from Rosetta. Rosetta also announced it would complete its exploration program in the Alberta Basin Bakken of Montana, but has not further development plans at this time. That's not a real surprise. We haven't been high on the Alberta Bakken. It's simply too remote and costly to develop. The 300,000 plus acres the company holds in the area will become a nice option on oil prices.
Rosetta's 2012 capital program includes a four-rig program in the Eagle Ford shale and the completion of 60 new wells, located both in the Gates Ranch area as well as new sections in the liquids window of the play. During 2011, Rosetta completed 45 wells in the Eagle Ford area. The Company's total exit rate for the year is expected to be approximately 195 million cubic feet equivalent per day ("MMcfe/d"). In January 2012, Eagle Ford firm gross wet gas capacity of 160 million cubic feet per day ("MMcf/d") will become available allowing Rosetta to move 216 MMcfe/d of net Eagle Ford volumes on a firm basis. By mid-year 2012, the Company's net Eagle Ford firm capacity will increase to 263 MMcfe/d.