Eagle Ford Shale

Rosetta Resources Updates Eagle Ford Shale Operations For 2011

Rosetta Resources (ROSE) updated investors on its 2011 development plan for its properties in Texas that are prospective for the Eagle Ford Shale.  The company plans to spend more than 90% of its $360 million capital budget in this area in 2011.

Rosetta Resources plans to drill forty wells in the Eagle Ford Shale in 2011 and has contracts in place for hydraulic fracturing services as well as processing and transportation of production from these wells.

Rosetta Resources exited 2010 with production of 86 million cubic feet of natural gas equivalents per day, with approximately 50% of this production composed of oil, condensate and natural gas liquids. 

Rosetta Resources has 26,500 net acres under lease in the Gates Ranch project area in Texas and raised the gross estimated ultimate recovery (EUR) rates on wells here to 7.2 billion cubic feet equivalent.  The company estimates the before income tax net present value for each well at $13.4 million. 

Rosetta Resources Details 2011 Eagle Ford Shale Budget

Rosetta Resources (ROSE) announced a $360 million capital budget for 2011, including $325 million in spending directed toward the development of the Eagle Ford Shale in Texas.

Rosetta Resources will use this capital to drill forty Eagle Ford Shale wells in 2011, compared to 29 in 2010. The company will focus its development efforts mainly at the Gates Ranch property.

Rosetta Resources has 21 Eagle Ford Shale wells currently on production.  The company exited 2010 with net production from the Eagle Ford Shale of 86 million cubic feet of natural gas equivalents per day.  This production was composed of 3,100 barrels of oil, 3,900 barrels of natural gas liquids and 44 million cubic feet of natural gas per day.

Rosetta Resources Updates Eagle Ford Shale Operations

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.