Rosetta Resources Inc. Announces 2011 Capital Budget And Guidance

Company Will Spend $360 Million In 2011 to Continue to Accelerate Development of Its Eagle Ford Shale Position and Further Evaluate the Company's Position in the Southern Alberta Basin

Eagle Ford Production is Expected to Grow Steadily Throughout the Year

HOUSTON, Jan. 4, 2011 (GLOBE NEWSWIRE) -- Rosetta Resources Inc. (Nasdaq:ROSE) ("Rosetta" or the "Company") today announced its Board of Directors has approved a 2011 capital budget of $360 million. Approximately 90 percent, or $325 million, will be spent for activities in the liquids-rich window of the Eagle Ford shale in South Texas, the largest producing area in the Company's portfolio. This capital expenditure program will be funded from a combination of internally generated cash flow plus proceeds from planned sales of assets in the DJ Basin and California.

"Our 2011 budget completes the successful shift of our asset portfolio from natural gas to predominantly liquids-rich unconventional shale plays that is significantly boosting production volumes, creating double-digit reserve growth and more significantly creating tremendous returns on our investments," said Randy Limbacher, chairman, chief executive officer and president. "More than 30 percent of our current production is now associated with liquids, reducing our exposure to weak natural gas prices and lowering our cost structure. While we intend to move prudently as we take advantage of our highly competitive Eagle Ford shale position, we are confident that Rosetta will increase current daily production to in excess of 200 million cubic feet equivalent in 2012 and when we do so, the majority of our production base and revenues will be from liquids."

Rosetta is confident in its ability to execute the 2011 capital program. This program calls for the drilling of 40 new wells in the Eagle Ford shale, primarily in the Gates Ranch which was successfully delineated in 2010. In conjunction with the accelerated activity, Rosetta has entered into a favorable two-year agreement to secure fracture stimulation services for three weeks per month. During 2010, Rosetta drilled 29 wells in the Eagle Ford area. Twenty-one completed Eagle Ford wells are currently producing 3,100 Bbls/d of oil, 3,900 Bbls/d of NGLs, and 44 MMcf/d of residue gas for a total net 2010 exit rate of 86 MMcfe/d. The Company's total exit rate for 2010 is about 159 MMcfe/d. During the fourth quarter, the Company successfully resolved capacity constraint issues in the Gates Ranch area with the opening of the new Dos Hermanas pipeline. Rosetta recently entered into new agreements which provide for gathering and processing for production from its Dimmit County properties, and increase its firm capacity rights on the Dos Hermanas pipeline beginning in the third quarter of 2011. The Company also entered into new agreements that provide for firm gathering and processing capacity on new facilities that will be available beginning in the fourth quarter of 2011.