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Rosetta Resources Inc.
("Rosetta" or the "Company") today announced its Board of
Directors has approved a 2013 capital budget of $700 million. Approximately
$600 million, or more than 85 percent, will be spent for activities in the
liquids-rich window of the Eagle Ford shale in South Texas, including about
$55 million allocated to facilities projects. In addition, the 2013 budget
allocates approximately ten percent of funds for evaluation of new venture
opportunities outside of the Eagle Ford area. This capital expenditure program
will be funded from internally-generated cash flow supplemented by borrowings
under our current credit facility.
"The 2013 budget reflects our continued confidence in our Eagle Ford
development program that has yielded significant growth in production and
reserves at very favorable returns. Liquids production now represents more
than 60 percent of our current production and we are maintaining a very
competitive cost structure for our business," said Randy Limbacher, chairman,
chief executive officer and president. "Going forward, we will continue to
focus our efforts on expanding the development of our Eagle Ford assets and
expect to deliver production growth of approximately 30 percent in 2013."
Rosetta's 2013 capital program is based on an average five-rig program and
includes the drilling of 75 wells along with the completion of 62 Eagle Ford
wells. Approximately half of the completions will be located in the Gates
Ranch area with the remainder in other areas in the liquids-rich window of the
play, including the Karnes Trough area, Briscoe Ranch and Central Dimmit
County.
Guidance
Based on the approved capital level, Rosetta expects full year 2013 production
guidance to range from 46 – 50 thousand barrels of oil equivalent per day
("MBoe/d") or about 30 percent year-over-year production growth. The projected
2013 exit rate is anticipated to range from 52 – 56 MBoe/d, including liquids
production of 32 – 35 MBoe/d. During the first quarter of 2013, an additional
50 million cubic feet per day ("MMcf/d") of Eagle Ford firm gross wet gas
capacity will become available for a total of 245 MMcf/d of takeaway capacity.
Rosetta expects approximately a six percent average decline in direct LOE unit
costs in 2013 compared to 2012. Total lifting costs, including direct LOE,
workover expenses, insurance, and ad valorem tax, are anticipated to range
from $2.87 – $3.23 per Boe in 2013. A summary of the Company's cost per unit
expense guidance for full year 2013 is outlined in the attached "Summary of
Expense Guidance" table.
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