- Provides new basin entry in Permian and access to oil-weighted multi-pay areas
- Adds 40,200 net acres in Delaware Basin delineated Wolfbone play
- Expands capital project inventory by approximately 1,300 gross drilling locations
- Adds 13,100 net acres with multiple exploratory opportunities in Midland Basin
- Accretive to cash flow per share in 2014
HOUSTON, March 15, 2013 (GLOBE NEWSWIRE) -- Rosetta Resources Inc. (Nasdaq:ROSE) ("Rosetta" or the "Company") today announced it has entered into a definitive agreement to acquire Permian Basin assets from Comstock Resources, Inc. (NYSE:CRK) ("Comstock") for a purchase price of approximately $768 million, subject to customary closing adjustments.
The acquisition covers 53,306 net acres (87,373 gross) located in Reeves and Gaines counties in West Texas. The Reeves County assets located in the Delaware Basin include 40,182 net acres and 74 producing (52 operated) primarily Wolfbone wells. Total current net production is approximately 3,300 barrels of oil equivalent per day (Boe/d) of which more than 73 percent is oil. Rosetta projects significant growth potential for the area based on an estimated 1,300 gross, or nearly 800 net well locations targeting the Wolfbone on 40-acre vertical well spacing. The Company estimates total net risked resources potential of 145 million barrels of oil equivalent (MMBoe) of which 67 percent is oil and 82 percent liquids. Potential upside also exists from further vertical well down-spacing and potential horizontal drilling, including the Wolfcamp formation, none of which is currently included in the resource estimate. Rosetta would be the operator of the majority of the Reeves County assets.
The Gaines County assets located in the Midland Basin cover 13,124 net acres and are currently un-delineated. Potential exists for multiple exploratory opportunities in the area. The Company's resource estimate for the Permian Basin acquisition excludes potential future resources from the Gaines County acreage.