Eagle Ford Shale

Rosetta Resources To Spend $590 Million In Eagle Ford Shale In 2012

Rosetta Resources (ROSE) announced a 2012 capital budget of $640 million and will spend $590 million or 90% of the funds on the company’s acreage in the Eagle Ford Shale.  The expenditures will be funded through cash flow and the company’s credit facility.

Rosetta Resources expects these expenditures to increase production from the Eagle Ford Shale by 40% over 2011.  The company will operate four rigs and complete sixty wells during the year in the company’s Gates Ranch project as well as on other parts of its properties.

2011 Eagle Ford Shale Summary

Rosetta Resources completed 45 net wells into the Eagle Ford Shale in 2011 and expects to exit 2011 with production of 195 million cubic feet of natural gas equivalent per day. 

Rosetta Resources Increases EUR Of Eagle Ford Shale Wells In Gates Ranch Area

Rosetta Resources (ROSE) reported an update on the development of the Eagle Ford Shale during the second quarter of 2011. 

Rosetta Resources increased the gross estimated ultimate recovery (EUR) of Eagle Ford Shale wells in the Gates Ranch area to 10 Bcfe, from 7.2 Bcfe previously.  This increase is based on up to two years of performance in some areas, according to the company.

Rosetta Resources estimates that each Eagle Ford Shale well in the Gates Ranch area has a pretax net present value of $20 million.

Rosetta Resources reported average production of 129 million cubic feet of natural gas equivalents per day in the second quarter of 2011, up from 89 million cubic feet of natural gas equivalents per day in the previous quarter.  This represented sequential growth of 45% and Eagle Ford Shale production is now 80% of the company’s total production.

Rosetta Resources has completed forty horizontal wells into the Eagle Ford Shale as of 6/30/2011, and is currently operating three rigs in the play. The company plans to drill between 25 and 28 additional Eagle Ford Shale wells in 2011

Rosetta Resources recently started two pilot infill drilling programs at the Gates Ranch area to test fifty acre down spacing.  The first pilot program has been drilled and the company expects the wells to be completed by the end of 2011.

Rosetta Resources Forced To Curtail Production In Gates Ranch Area

Rosetta Resources (ROSE) disclosed a temporary interruption of production from the company’s Eagle Ford Shale properties in Texas.  The interruption was due to an “operational upset” at a gathering and processing facility owned by a third party.

Rosetta Resources said that the approximately 75 million cubic feet per day of production from the Gates Ranch area has been curtailed since 7/20/2011.  The company reported total production from the Eagle Ford Shale of 120 million cubic feet of natural gas equivalents per day at the end of the first quarter of 2011.  The total curtailed production is 525 million cubic feet during the first seven days. 

Rosetta Resources guidance called for total company production at the end of 2011 to be in a range between 185 and 195 million cubic feet of natural gas equivalents per day.  The company did not indicate whether the curtailment would impact this goal.

Rosetta Resources has 65,000 net acres exposed to the Eagle Ford Shale as of 6/5/2011.  Additional details on the acreage:

Dry Gas – 15,000 net acres and 145 potential drilling locations.

Oil and Liquids – 50,000 net acres and 450 potential drilling locations.