Rosetta Resources grew proved reserves by 25% and production by 35% in 2012. All while the company was driving Eagle Ford well costs down by $1 million per well.
The company shifted its focus to liquids resources in the Eagle Ford over the past few years and the company's production mix reflects the change. Production in the fourth quarter of 2012 was 62% liquids versus just 49% a year earlier.
The company spent $514 million drill 80 Eagle Ford wells and complete 62 in 2012. Over the past few quarters, the company has driven its well costs down to $6.5-7 million per well. That's approximately $1 million less than prior guidance.
"During 2012 we ramped up our development efforts in the Eagle Ford shale expanding our drilling program into four areas," said Randy Limbacher, Rosetta's CEO.......Our results were favorably impacted by rapidly decreasing well costs during the second half of the year that further enhanced asset values and will provide greater flexibility in implementing our 2013 capital program."
Rosetta plans to spend approximately $600 million in the Eagle Ford in 2013 to drill 75 wells and complete 62 wells. $55 million of the $600 will be spent on facilities in the area.