Rosetta Shifts Focus To Eagle Ford Shale

By Houston Business Journal

Rosetta Resources Inc. said it will invest $325 million on Eagle Ford shale activities in 2011.

The commitment is part of a $360 million capital budget approved by the Houston-based oil and gas company, and now represents the largest producing area in its portfolio.

To fund the capital budget, Rosetta (NASDAQ: ROSE) will use current cash flow as well as proceeds from planned sales of assets in the Denver-Julesburg Basin in Colorado and Sacramento Basin in California.

The company has shifted more than 30 percent of its production to liquids, according to Randy Limbacher, president and chief executive officer, and the new program calls for the drilling of 40 new wells.

⿿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,⿝ Limbacher said in a statement.

In addition, Rosetta expects to allocate funds toward the continued evaluation of the Southern Alberta Basin in Montana, where the company holds about 300,000 net acres in the Bakken shale.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/houston/news/2011/01/05/rosetta-shifts-focus-to-the-eagle-ford.html?ana=thestreet

Copyright bizjournals.com 2010

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