ROSE
Posted: Sat Feb 08, 2014 2:44 pm
Rosetta Resources (ROSE) is developing a second core area in the Permian Basin. Their primary focus will remain on the Eagle Ford, but the Permian adds a second layer of growth potential for us. - Dan
In Reeves County, Rosetta successfully completed the first of three horizontal Wolfcamp wells spud during the fourth quarter of 2013. The Gaucho State 15-2H well was completed in the upper Wolfcamp interval with 13 frac stages across an effective 4,000-foot lateral length. The well was brought on-line in December and tested at a seven-day gross stabilized rate of 613 Bbls/d of oil, 788 Mcf/d of residue gas, and 85 Bbls/d of NGLs for an equivalent rate of 829 Boe/d. Based on the Company's current evaluation of offset well production data, the estimated ultimate recovery ("EUR") for a horizontal upper Wolfcamp well, assuming a normalized 5,000-foot lateral, is projected to be approximately 500 - 600 gross MBoe (74% oil / 10% NGLs). Utilizing this EUR range, one typical horizontal upper Wolfcamp well has a pre-tax rate of return of 40 -- 60 percent, based on drilling and completion costs of $8.0 - $9.0 million and current strip pricing.
On December 30, 2013, Rosetta entered into a definitive agreement with several private parties to acquire Delaware Basin assets for a purchase price of $85 million. The acquisition covers 5,078 net acres (14,985 gross) located in Reeves County. The acquired assets include 13 gross producing wells (11 operated). The Company estimates the addition of 49 net (145 gross) future horizontal upper Wolfcamp drilling locations to expand the capital project inventory. The transaction is expected to close on or about February 28, 2014, subject to customary closing conditions.
In Reeves County, Rosetta successfully completed the first of three horizontal Wolfcamp wells spud during the fourth quarter of 2013. The Gaucho State 15-2H well was completed in the upper Wolfcamp interval with 13 frac stages across an effective 4,000-foot lateral length. The well was brought on-line in December and tested at a seven-day gross stabilized rate of 613 Bbls/d of oil, 788 Mcf/d of residue gas, and 85 Bbls/d of NGLs for an equivalent rate of 829 Boe/d. Based on the Company's current evaluation of offset well production data, the estimated ultimate recovery ("EUR") for a horizontal upper Wolfcamp well, assuming a normalized 5,000-foot lateral, is projected to be approximately 500 - 600 gross MBoe (74% oil / 10% NGLs). Utilizing this EUR range, one typical horizontal upper Wolfcamp well has a pre-tax rate of return of 40 -- 60 percent, based on drilling and completion costs of $8.0 - $9.0 million and current strip pricing.
On December 30, 2013, Rosetta entered into a definitive agreement with several private parties to acquire Delaware Basin assets for a purchase price of $85 million. The acquisition covers 5,078 net acres (14,985 gross) located in Reeves County. The acquired assets include 13 gross producing wells (11 operated). The Company estimates the addition of 49 net (145 gross) future horizontal upper Wolfcamp drilling locations to expand the capital project inventory. The transaction is expected to close on or about February 28, 2014, subject to customary closing conditions.