Eagle Ford Shale

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 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.