HOUSTON, Dec. 10, 2012 (GLOBE NEWSWIRE) -- Rosetta Resources Inc. (Nasdaq:ROSE) ("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.
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