Rosetta Resources Q3 2008 Earnings Call Transcript

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2008-11-10 11:15:32.0

Tags: Success, Call Transcript, Earnings, Productivity, Pricing, Marketing, Seeking Alpha, Success, Call Transcript, Earnings, Productivity, Pricing, Marketing, Seeking Alpha, Rosetta Resources Inc.

Question-and-Answer Session

Operator

Thank you. The question-and-answer session will be conducted electronically today. (Operator Instructions). And we’ll take our first question from Neal Dingmann from Dahlman Rose.

Neal Dingmann - Dahlman Rose & Co.

Good morning guys.

Randy Limbacher

Neil.

Neal Dingmann - Dahlman Rose & Co.

Say, question on the Rockies first. It looks like I know it says last Friday that pricing that I was seeing was roughly around $4 at those levels. Wonder what you're seeing as far as the realized price, are you shutting anything in and what are the plans for the remainder for the year.

Randy Limbacher

Yes, I mean we are seeing the same thing you are. We are not shutting anything in currently. I mean starting and stopping these things don't make a lot of sense. A lot of it is tied to we think to [shoulder] month activity. Going forward, again this is one of those areas that we would probably swing off of.

So we are going to have drilling permits in place for 270 or so wells, but probably would start out due to the differentials you are seeing at much lower levels than that and again be willing to adjust depending on what prices actually do and what's signal we get throughout 2009.

Neal Dingmann - Dahlman Rose & Co.

Got it. Then there was some in the latest conference call one or two year periods, in that DJ mentioned that they were seeing somewhere around 76% success rate to [size] down a little bit, definitely a little bit lower than what we've seen historically. What kind of success are you currently seeing and what do you expect there?

Randy Limbacher

John, do you have this quarter's number on the..

John Clayton

DJ, I recall it's been pretty strong but ..

Randy Limbacher

We have John Clayton to answer.

Neal Dingmann - Dahlman Rose & Co.

It's historic by (inaudible) that's real strong, so that's why I asked.

John Clayton

Yes, we've been fairly successful out there. Just for the specifics, in the quarter, I believe we drilled 18 wells, 17 of the 18 were productive. We are in a very good position, the basin. We've got significant technical coverage over the areas we are in, and what we've been successful in is actually taking some of the lower resistivity pay, changing our stimulation techniques and making that commercial. And that's driven our success rate up.

 

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