Exhibit 99.1
2009
2
2008 Achievements
§ Successful resolution of Calpine litigation
§ Significant progress on strategy shift to onshore unconventional player
§ Established experienced team and filled key functions
§ Initiated comprehensive resource assessments and reviews of existing
asset positions
asset positions
§ Increased project inventory by ~150%
§ Entered several new unconventional plays with substantial upside from
meaningful positions
meaningful positions
§ Completed four property acquisitions
3
Transition to Resource Player Underway
§ Expanded Acreage Position
§ Quality Proved Reserve Base
§ Significant Project Inventory
§ Additional Resource Potential
§ Focus on Cost Control
§ Financial Flexibility
4
Expanded Acreage Position
Reserves & Inventory
6
2008 Year End Reserves
7
PDP 235.1 Bcfe
PDNP 92.2 Bcfe
PUD 70.9 Bcfe
Proved Reserves by District (Bcfe)
8
2008 Year End Capital Inventory
9
Well Count
1158
Resource Size (Bcfe)
299
Resource Inventory
10
Green River Basin: Constellation / Nielson | |
Purchase Price | $39 million |
WI / NRI | 100% / 78% |
Net Acres | 1280 |
Producing Well Count | 28 |
Net Production | 9 Mcfe/d |
Net Proven Developed | 30 Bcfe |
Acquisition Cost | $1.30 / Mcfe |
Total Net Non-Proven | 178 Bcfe |
ALONG THE PINEDALE ANTICLINE: Rosetta closed on (2) producing property acquisitions that
offered not only proven reserves and immediate cashflows, but a significant capital inventory of
opportunities that are held by production and will be developed at the company’s discretion…
offered not only proven reserves and immediate cashflows, but a significant capital inventory of
opportunities that are held by production and will be developed at the company’s discretion…
PINEDALE FIELD
90 sq.mi.
>600 wells
700 MMcfe/d
OGIP: 48 TCFE
Recoverable: 27 TCFE
JONAH FIELD
35 sq.mi.
>1,000 wells
900 MMcfe/d
OGIP: 14 TCFE
Recoverable: 9 TCFE
11
South Texas: Constellation | |
Purchase Price | $20 million |
WI / NRI | 70% / 52% |
Net Acres | 21,110 |
Producing Well Count | 285 |
Net Production | 5 Mcfe/d |
Net Proven Developed | 14 Bcfe |
Acquisition Cost | $1.43 / Mcfe |
Total Net Non-Proven | 39 Bcfe |
IN THE GREATER MAVERICK BASIN: Rosetta closed on (1) producing property acquisition
that offered not only proven reserves and immediate cashflows, but a significant capital
inventory of opportunities that are mostly held by production and will be developed at the
company’s discretion…
that offered not only proven reserves and immediate cashflows, but a significant capital
inventory of opportunities that are mostly held by production and will be developed at the
company’s discretion…
Additional Resource
Potential
Beyond Reserves & Inventory
Potential
Beyond Reserves & Inventory
13
Additional Resource Potential
Beyond Reserves & Inventory
Beyond Reserves & Inventory
§ Organic Growth
• Denver Julesburg Basin Niobrara Chalk
• Sacramento Basin Tight Capay Sand
• South Texas Eagle Ford Shale
• Alberta Basin Bakken Shale
14
30 miles
Denver
Denver Julesburg Basin Niobrara Play
Rosetta Resource’s Position:
▪ Net Undeveloped Acreage: 90,000 acres
▪ Net Projects: 1750 wells*
▪ Net Resource Potential: 350 Bcfe
* Not including the 500 locations already in inventory
Denver Julesburg Basin
15
Denver Julesburg Basin
Niobrara Downspacing Project
Niobrara Downspacing Project
16
Sacramento Basin
Tight Capay Resource Play
Tight Capay Resource Play
Sacramento Basin Tight Capay Sand Play
Rosetta Resource’s Position:
▪ Net Undeveloped Acreage: 30,000 acres
▪ Net Projects: 375 wells
▪ Net Resource Potential: 100 Bcfe
17
Sacramento Basin
Tight Capay Resource Play
Tight Capay Resource Play
WELL RESULTS | |
Well | Initial Rate (Mcfe/d) |
RVGU 242 | 475 |
RVGU 222 | 200 |
RVGU 296 | 130 |
RVGU 299 | 1300 |
Jordan 8 | 1250 |
RVGU 269U | 550 |
Average | 650 |
18
South Texas
Eagle Ford Shale Play
Eagle Ford Shale Play
19
South Texas
Eagle Ford Shale Play
Eagle Ford Shale Play
South Texas Eagle Ford Shale Play
Rosetta Resource’s Position:
▪ Net Undeveloped Acreage: 25,000 acres
▪ Net Projects: 150 wells
▪ Net Resource Potential: 300 Bcfe
20
Alberta Basin
Bakken Shale Resource Play
Bakken Shale Resource Play
Alberta Basin Bakken Play
Rosetta Resource’s Position:
▪ Net Undeveloped Acreage: 231,000 acres
▪ Net Projects: 723 wells*
▪ Net Resource Potential: 60 - - 300 MMBOE
* 320 acre development
21
Growth Opportunities
Summary of Projects in Addition to Our PUD, Probable & Possible Inventories
Summary of Projects in Addition to Our PUD, Probable & Possible Inventories
Areal Extent (Net Acres) | Projects (Project Count) | Net Resource (Bcfe) | |||
DJ Basin Niobrara Chalk | 90,000 | 1750 | 350 | ||
California Tight Capay Sand | 30,000 | 375 | 100 | ||
South Texas Eagle Ford Shale | 25,000 | 150 | 300 | ||
Alberta Basin Bakken Shale | 230,000 | 700 | 600 | ||
TOTAL | 375,000 | 2975 | 1350 |
22
Combined Opportunities
Inventory + Additional Resource Potential
Inventory + Additional Resource Potential
Service Costs
24
☑ | Drilling rig rates (incl. mob/demob/fuel and power) - Down 24% from 4Q 2008 |
☑ | Tubulars - spot market supply |
▪ Down ~41% since peak in Q3-2008 | |
▪ Down ~2% since Q4-2008 | |
r | Stimulation |
r | Cementing |
r | Equipment rentals |
r | Wireline |
r | Drilling mud |
r | Other |
☑ | Seismic - 120 sq. mile shoot in South Texas ~$5.5MM vs. ~$8MM bid in early 2008 |
§ Major areas of savings
▪ Initial market price reduction captured
▪ Should continue to decline as broad pullback in
activity adds price pressure
activity adds price pressure
Reduce Capex by Bidding Out Major Services and Supplies
25
r | Equipment Rentals (mainly compression) |
☑ | Chemicals - Pricing down 13% vs. 2008 |
r | Contract labor / consulting |
r | Salt water disposal / water hauling |
r | Reduction in LOE in non-operated properties |
Continue to Drive Down LOE Costs
Approx. ~$4MM of opportunities identified to lower the current LOE budget
of $40MM.
of $40MM.
§ Major areas of savings
Financial Summary
27
Financial Capacity to Grow
§ Revolving line of credit - conforming borrowing base remains at $400
million
million
§ $300 million debt outstanding at year end 2008
§ ~$200 million liquidity from unused capacity and cash on hand
§ Protected 2009 natural gas production with 52 BBtu/d swapped at an
average price of $7.65 and 5 BBtu/d of collars at $8.00 by $10.05
average price of $7.65 and 5 BBtu/d of collars at $8.00 by $10.05
§ Protected 2010 natural gas production of 10 BBtu/d swapped at $8.31
§ Goal to maintain optionality and flexibility
28
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
1/1/2008
4/1/2008
7/1/2008
10/1/2008
1/1/2009
4/1/2009
7/1/2009
NYMEX Gas
Rosetta Investment Deck
Strip > ROSE Price Deck
■ Preference for organic activities
■ Ramp up drilling in existing assets and convert
price-sensitive inventory
price-sensitive inventory
■ Consider adding hedges
■ Maintain financial discipline to position for cycles
Strip < ROSE Price Deck
■ Preference for inorganic activities
■ Ramp up asset studies to build inventory
■ Maintain flexibility to respond to environment
Flexibility - How Will We Act?
29
2009 Business Plan
§ Maintain balance between cash flow and capital activity
§ Re-engineer existing opportunity set
• Sacramento Basin workovers
• Lobo program
§ Pursue bolt-on/strategic acquisitions
§ Evaluate new play opportunities
• Eagle Ford
• Bakken
§ Evaluate sale of non-core assets
§ Focus on cost reductions
30
It’s a Great Time to Look at Rosetta
§ Post-Calpine reserves and financial position is high quality
§ Unconventional approach on existing assets will be impactful
§ Ground floor opportunity to participate in significant new play
entry
entry
§ Experienced management with passion and commitment
§ Very attractive risk-reward profile for Company our size
§ Today trading at significant discount on valuation basis to
companies with similar business model
companies with similar business model