Rosetta Resources Inc. provides an update on several operational matters, including updates on its Eagle Ford Shale, Alberta Basin Bakken program and its outlook on production volumes.
In announcing these items, Randy Limbacher, Rosetta's chairman, chief executive officer and president commented:
"2010 is off to a strong start for Rosetta. We have added acreage in both of our emerging shale plays, and taken measures to concentrate our operational footprint in the liquids-prone Gates Ranch area of the Eagle Ford. This will serve us well in carrying out our planned development program. Our Eagle Ford drilling results are exceeding expectations and our ongoing studies of the Alberta Basin Bakken opportunity continue to support our constructive view of that play. We are maintaining our discipline in the current low gas price environment, while funding our liquids-prone programs to profitably achieve our stated goals for growth in production and reserves."
Eagle Ford Shale Program
During the first quarter of 2010, Rosetta Resources drilled or spud nine horizontal wells in the Eagle Ford Shale play. Seven wells are drilled to total depth, and two wells are currently drilling. The lateral length of the seven drilled wells averaged approximately 4,650 feet, roughly a 20% increase compared to Rosetta's two 2009 horizontal wells. Three of the seven drilled wells were fracture-stimulated during the first quarter using 12-14 frac stages per well. Two of the completed wells are on production and one is currently cleaning up. The other drilled wells are pending completion.
The gross seven-day rate on the two recently completed and producing wells averaged 3.2 MMcf/d of gas, approximately 350 Bbls of condensate and approximately 490 Bbls of NGL's, for a total of over 8.2 MMcfe/d per well. This is up significantly from the seven-day rate of the 2009 wells. Importantly, about 80% of the value of these recently completed wells is comprised from liquids. The Company also reported that the first quarter 2010 exit rate for its four producing Eagle Ford wells was over 13 MMcfe/d, which is also exceeding expectations.
In other Eagle Ford activities, the Company executed the previously announced commitments to acquire additional acreage and working interest in its Gates Ranch area. The Company now has approximately 29,500 contiguous acres under lease and a 100% working interest in the Gates Ranch area, which is located in the condensate window of the Eagle Ford play. The Company believes this degree of operational control and concentration will positively impact program economics, cycle times and operating flexibility. Additionally, the Company holds approximately 32,000 net acres located in other prospective areas of the Eagle Ford. The Company holds a total of over 61,000 net acres in the play.
Rosetta is currently executing a two-rig program in the Eagle Ford play, which will focus primarily on Gates Ranch development drilling for the remainder of 2010. A total of 25-30 wells are expected to be drilled during 2010, with completions scheduled throughout the year. On an 80-acre spacing basis, Rosetta has identified over 350 development locations on the Gates Ranch area alone. The 2010 drilling program represents only 10% of this significant future opportunity.
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Rosetta Resources Inc.
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