Rosetta Resources Inc. recently announced approval of a 2012 capital budget of $640 million. More than 90% (approximately $590 million) will be dedicated to looking for natural gas in the Eagle Ford shale play in South Texas. Approximately 5% of the new budget will be used to evaluate the Southern Alberta Basin.
“Our 2012 budget reflects the continuing success of our Eagle Ford program that has resulted in strong growth in production and reserves while generating significant returns on our investments. More than 50 percent of our current production is now associated with liquids, lowering our cost structure and delivering increased cash margin performance. Our primary focus remains the evaluation and development of our Eagle Ford assets which we expect to deliver production increases of approximately 40 percent in 2012,” said Randy Limbacher, chairman, chief executive officer and president.
Part of the expenditure will include a four-rig program in the Eagle Ford shale and the completion of 60 new wells, an increase from Rosetta’s 45 wells in 2011.
Eagle Ford production is nothing but good news for Texas, with the creation of more jobs, better local infrastructure and higher returns for everyone involved. Kudos to Rosetta Resources!