Rosetta Resources (ROSE) issued an update on the company’s activities in the Eagle Ford Shale for the second quarter of 2010. The company has a total position of 64,000 net acres in the Eagle Ford Shale, and estimates that 75% of its position is in the liquids rich area. The average cost for the acreage is approximately $900 per acre.
Rosetta Resources is currently operating two rigs in the Eagle Ford Shale and will add a third rig shortly. The company expects to drill 30 to 35 wells in 2010, including 25 to 30 wells in the Gates Ranch area.
Rosetta Resources estimates that the average cost to drill and complete an Eagle Ford Shale well is from $6.5 to $7.5 million, and the company is using lateral lengths of approximately 5000 feet and 13 to 15 hydraulic fracturing stages.
Gates Ranch
The main liquids project area for the company in the Eagle Ford Shale is in the Gates Ranch area, where Rosetta Resources has 29,500 net acres. The company has drilled fourteen total horizontal wells in this area since beginning its development program, and completed twelve of these wells.
Rosetta Resources reported that the average seven day gross production rate for wells here was 320 barrels per day of condensate, 500 barrels per day of natural gas liquids and 3.1 million cubic feet per day of natural gas. This converts to 8 million cubic feet equivalent per day.
Total production from the Gates Ranch area is 59 million gross cubic feet equivalent per day, or 44 million net cubic feet equivalent per day.
Encinal/Springer Ranch
The company’s dry gas position in the Eagle Ford Shale is in the Encinal/Springer Ranch area. Rosetta Resources is cutting its drilling back in this area due to low natural gas prices. The company has drilled four total horizontal wells in this area since beginning its development program, and completed two of these wells.
