ROSETTA RESOURCES INC.

ROSETTA RESOURCES INC.

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Company Overview
Rosetta Resources Inc. is an independent oil and gas company engaged in the acquisition, exploration, development and production of oil and gas properties. The company was formed in June of 2005. It has registered business establishment located in Houston, Texas.
The company’s operations concentrate in the Sacramento Basin of California, the Lobo and Perdido Trends in South Texas, the State Waters of Texas, the Gulf of Mexico and the Rocky Mountains. The company’s proved reserves are composed of natural gas and proved developed with a reserve life index of approximately 12 years.
The company operates approximately 90% of proved reserves and maintains high degree of control over capital expenditure budget and other operating matters.
As of December 31, 2006, the company’s total proved oil and natural gas reserves were approximately 408 Bcfe, including 390 Bcf of natural gas and 2,930 MBbls of oil and condensate.
Business Summary
Rosetta Resources Inc. (Rosetta) is an independent oil and gas company engaged in the exploration, development, acquisition and production of oil and gas properties. The Company’s operations are concentrated in the areas of the Sacramento Basin of California, the Rockies, and South Texas. In addition, the Company has non-core positions in the State Waters of Texas and the Gulf of Mexico. During the year ended December 31, 2009, the Company drilled 43 gross and 36 net wells, with a success rate of 83%. On February 4, 2009, the Company acquired the remaining 10% working interest in the 1,280-acre position Pinedale Anticline in the Rockies.
Description and history
Rosetta Resources Inc. (Rosetta), is an independent oil and gas company engaged in the exploration, development, acquisition and production of oil and gas properties. The Company’s operations are concentrated in the areas of the Sacramento Basin of California, the Rockies, and South Texas. In addition, the Company has non-core positions in the State Waters of Texas and the Gulf of Mexico. During the year ended December 31, 2009, the Company drilled 43 gross and 36 net wells, with a success rate of 83%. On February 4, 2009, the Company acquired the remaining 10% working interest in the 1,280-acre position Pinedale Anticline in the Rockies.

California

The Sacramento Basin is located near the Northern California natural gas markets and has an established natural gas gathering and pipeline infrastructure. As of December 31, 2009, the Company owned approximately 60,000 net acres in the Rio Vista Field and other fields in the Sacramento Basin areas. During the year ended December 31, 2009, the Company’s average net daily production from the Rio Vista Field and surrounding fields in the Sacramento Basin was 42.4 millions of cubic feet equivalent/day (MMcfe/d). In 2009, the Company drilled one gross well, which was successful.

The Rio Vista Gas Unit and a portion of the deep rights below the Rio Vista Gas Unit, which together constitute the Rio Vista Field, is the onshore natural gas field in California. The field has produced a cumulative 3.7 trillion cubic feet (Tcfe) of natural gas reserves to date since its discovery in 1936. The Company produce from or have behind-pipe reserves in multiple zones at depths ranging from 2,000 feet to 11,000 feet in the field. The Rio Vista Field trap is a faulted, downthrown rollover anticline, elongated to the northwest. The productive area is approximately 10 miles long and nine miles wide.

Rockies

During the year ended December 31, 2009, the Company owned approximately 160,000 net acres in the Rockies and had approximately 230,000 net acres under an exploration option in the Alberta Basin of Montana. The production is concentrated in three basins: the DJ Basin, San Juan Basin and Greater Green River Basin. During 2009, the average net production was 19 MMcfe/d. In 2009, the Company drilled five gross wells, all of which were successful. As of December 31, 2009, the Company had a majority working interest in 94,000 net acres with 154 square miles of three-dimensional (3D) seismic data. For the year ended December 31, 2009, the Company’s average net daily production from the DJ Basin was 7.9 MMcfe/d.

The San Juan Basin is the gas basin in North America with contribution coming from the Fruitland coal bed methane (CBM) trend. There is CBM production from depths of 1,600 feet surrounding the Company’s leasehold. As of December 31, 2009, the Company had a 100% working interest in approximately 16,000 net acres. During 2009, the Company drilled three CBM wells, all of which were successful. During the year ended December 31, 2009, its average net daily production from the San Juan Basin was 5 MMcfe/d.

South Texas

As of December 31, 2009, the Company owned approximately 170,000 net acres in South Texas. The Company’s production in South Texas comes primarily from the Lobo, Olmos and Perdido sand trends and the Eagle Ford Shale trend, and averaged 55.7 MMcfe/d for the year ended December 31, 2009. In 2009, Rosetta drilled 31 gross wells of which 25 were successful.

Rosetta is a producer in the South Texas Lobo Trend, with 470 square miles of 3-D seismic and 255 operated producing wells. In 2009, the Company shot a new 3-D seismic survey covering 112 square miles of its Lobo acreage. For the year ended December 31, 2009, its average net daily production from the Lobo trend was 44.1 MMcfe/d. In 2009, the Company drilled 27 gross wells, of which 21 were successful.

Rosetta owns a 50% non-operated working interest in the South Texas Perdido Sand trend. The Perdido Sands are comprised of tight natural gas sands and are in isolated fault blocks that are stratigraphically trapped below the Upper Wilcox structures at approximately 8,000 to 9,500 feet. During 2009, the average net daily production was 6.5 MMcfe/d from 37 producing wells (24 horizontal and 13 vertical).

Texas State Waters

The Company owns a 50% operated working interest through a joint venture in Sabine Lake, within Texas State Waters of Jefferson County and Louisiana State Waters of Cameron Parish. and additional non-operated properties in Texas State Waters near Nueces Bay. During 2009, the Company drilled three gross wells, which were successful. The net production averaged 5.4 MMcfe/d during 2009. As of December 31, 2009, the Company held interests in approximately 4,000 net acres with 72 square miles of 3-D seismic data.

Gulf of Mexico

Rosetta owns working interests in 12 offshore blocks ranging from 20% to 100% working interest with approximately 28,000 net acres. During 2009, the average net daily production from these blocks was 6.4 MMcfe/d.

Business Line
Acquisition, exploration, development and production of oil and gas properties
Subsidiary
ROSETTA RESOURCES GATHERING LP
Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
2/2006
US SIC Code
1311
Company Address
Suite 2800
717, Texas
City province or state postal code
77002, HOUSTON, TX
Phone: +1 713 335 4000
Fax:
Country address: UNITED STATES OF AMERICA
Website url: www.rosettaresources.com