Rosetta Resources is planning to down space to 65-acres per well in the Eagle Ford. That's a nice jump from the 100+ acres spacing most are utilizing across the play. Well results will tell the story, but Rosetta has the confidence to go forward based on what it has seen to date. Development of the company's entire acreage position is expected at a range of 60-80 acres per well. The company also proved the potential of 13,600 acres outside of Gates Ranch. At ~65-acre spacing, that's an additional 200 drilling locations. In addition, Rosetta has a 10,000 acre position that will be tested during 2012.
12 Eagle Ford wells were completed in the third quarter and the company plans to complete 13 wells in the fourth quarter. That pace is close to the long-term target of 60 completions per year. With an inventory of more than 800 wells to be drilled, the Eagle Ford is becoming a 10-15 year development for Rosetta Resources.
Our Eagle Ford position continues to drive the success of our company as we expand our operations into new parts of the play that will serve as a further catalyst for growth,..
Progressed midstream expansions — Rosetta is benefiting from improved performance by Eagle Ford midstream providers. Recent expansions that became operational in October almost three weeks ahead of schedule increased total firm gross wet gas capacity for the Eagle Ford to 123 million cubic feet per day ("MMcf/d"). This will allow the Company to move 166 million cubic feet equivalent per day ("MMcfe/d") of net Eagle Ford volumes on a firm basis. Firm gross wet gas capacity of 160 MMcf/d will become available in January 2012 increasing Rosetta's net total firm capacity to 216 MMcfe/d.
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. 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.