Attached files
| file | filename |
|---|---|
| 10-K - ROSETTA RESOURCES 10-K 12-31-2009 - NBL Texas, LLC | form10k.htm |
| EX-32.1 - EXHIBIT 32.1 - NBL Texas, LLC | ex32_1.htm |
| EX-31.1 - EXHIBIT 31.1 - NBL Texas, LLC | ex31_1.htm |
| EX-21.1 - EXHIBIT 21.1 - NBL Texas, LLC | ex21_1.htm |
| EX-23.2 - EXHIBIT 23.2 - NBL Texas, LLC | ex23_2.htm |
| EX-23.1 - EXHIBIT 23.1 - NBL Texas, LLC | ex23_1.htm |
| EX-31.2 - EXHIBIT 31.2 - NBL Texas, LLC | ex31_2.htm |
| EX-10.42 - EXHIBIT 10.42 - NBL Texas, LLC | ex10_42.htm |
Exhibit 99.1
February
2, 2010
Mr. Randy
L. Limbacher
Rosetta
Resources Inc.
717
Texas, Suite 2800
Houston,
Texas 77002
Dear Mr.
Limbacher:
In
accordance with your request, we have audited the estimates prepared by Rosetta
Resources Inc. (Rosetta), as of December 31, 2009, of the proved reserves to the
Rosetta interest in certain oil and gas properties located in the United
States. It is our understanding that the proved reserves estimates
shown herein constitute all of the proved reserves owned by
Rosetta. Economic analysis was performed by Rosetta only to confirm
commercial viability and determine economic limits for the properties, using the
price and cost parameters discussed in subsequent paragraphs of this
letter. We have examined the estimates with respect to reserves
quantities, reserves categorization, and future producing rates, using the
definitions set forth in U.S. Securities and Exchange Commission (SEC)
Regulation S-X Rule 4-10(a). The estimates of reserves have been
prepared in accordance with the definitions and guidelines of the SEC and
conform to the FASB Accounting Standards Codification Topic 932, Extractive
Activities—Oil and Gas. This report has been prepared for Rosetta's
use in filing with the SEC.
The
following table sets forth Rosetta's estimates of the net reserves, as of
December 31, 2009, for the audited properties:
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Net
Reserves
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Oil
|
NGL
|
Gas
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Category
|
(Barrels)
|
(Barrels)
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(MCF)
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|||||||||
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Proved
Developed Producing
|
1,452,639 | 2,179,983 | 194,245,984 | |||||||||
|
Proved
Developed Non-Producing
|
0,870,905 | 0,165,114 | 042,366,910 | |||||||||
|
Proved
Undeveloped
|
1,501,753 | 2,875,707 | 060,156,004 | |||||||||
|
Total
Proved
|
3,825,298 | 5,220,804 | 296,768,938 | |||||||||
| Totals may not add because of rounding. | ||||||||||||
The oil
reserves shown include crude oil and condensate. Oil and natural gas
liquids (NGL) volumes are expressed in barrels that are equivalent to 42 United
States gallons. Gas volumes are expressed in thousands of cubic feet
(MCF) at standard temperature and pressure bases.
When
compared on a field-by-field basis, some of the estimates of Rosetta are greater
and some are less than the estimates of Netherland, Sewell & Associates,
Inc. However, in our opinion the estimates of Rosetta's proved
reserves shown herein are, in the aggregate, reasonable and have been prepared
in accordance with generally accepted petroleum engineering and evaluation
principles. These principles are set forth in the Standards
Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information
promulgated by the Society of Petroleum Engineers. We are satisfied
with the methods and procedures used by Rosetta in preparing the December 31,
2009, estimates of reserves, and we saw nothing of an unusual nature that would
cause us to take exception with the estimates, in the aggregate, as prepared by
Rosetta.
The
estimates shown herein are for proved reserves. Rosetta's estimates
do not include probable or possible reserves that may exist for these
properties, nor do they include any value for undeveloped acreage beyond those
tracts for which undeveloped reserves have been estimated. Reserves
categorization conveys the relative degree of certainty; reserves
subcategorization is based on development and production status. The
estimates of reserves included herein have not been adjusted for
risk.
Oil, NGL,
and gas prices were used only to confirm commercial viability and determine
economic limits for the properties. Prices used by Rosetta are based
on the 12-month unweighted arithmetic average of the first-day-of-the-month
price for the period January through December 2009. For oil and NGL
volumes, the average West Texas Intermediate posted price of $57.65 per barrel
is adjusted by lease for quality, transportation fees, and regional price
differentials. For gas volumes, the average Henry Hub spot price of
$3.866 per MMBTU is adjusted by lease for energy content, transportation fees,
and regional price differentials. All prices are held constant
throughout the lives of the
properties.
Operating
costs and capital costs were used only to confirm commercial viability and
determine economic limits for the properties. Lease and well
operating costs used by Rosetta are based on historical operating expense
records. For nonoperated properties, these costs include the per-well
overhead expenses allowed under joint operating agreements along with estimates
of costs to be incurred at and below the district and field
levels. Lease and well operating costs for the operated properties
are limited to direct lease- and field-level costs and Rosetta's estimate of the
portion of its headquarters general and administrative overhead expenses
necessary to operate the properties. Lease and well operating costs
are held constant throughout the lives of the properties. Rosetta's
estimates of capital costs are included as required for workovers, new
development wells, production equipment, and abandonment. The future
capital costs are held constant to the date of expenditure.
The
reserves shown in this report are estimates only and should not be construed as
exact quantities. Proved reserves are those quantities of oil and gas
which, by analysis of engineering and geoscience data, can be estimated with
reasonable certainty to be economically producible. If the reserves
are recovered, the revenues therefrom and the costs related thereto could be
more or less than the estimated amounts. Because of governmental
policies and uncertainties of supply and demand, the sales rates, prices
received for the reserves, and costs incurred in recovering such reserves may
vary from assumptions made while preparing these estimates. Estimates
of reserves may increase or decrease as a result of future operations, market
conditions, or changes in regulations.
It should
be understood that our audit does not constitute a complete reserves study of
the audited oil and gas properties. Our audit consisted primarily of
substantive testing, wherein we conducted a detailed review of major properties
making up 81 percent of the company's total proved reserves. In the
conduct of our audit, we have not independently verified the accuracy and
completeness of information and data furnished by Rosetta with respect to
ownership interests, oil and gas production, well test data, historical costs of
operation and development, product prices, or any agreements relating to current
and future operations of the properties and sales of
production. However, if in the course of our examination something
came to our attention that brought into question the validity or sufficiency of
any such information or data, we did not rely on such information or data until
we had satisfactorily resolved our questions relating thereto or had
independently verified such information or data. We used standard
engineering and geoscience methods, or a combination of methods, such as
performance analysis, volumetric analysis, and analogy, that we considered to be
appropriate and necessary to establish the conclusions set forth
herein. Our audit did not include a review of Rosetta's overall
reserves management processes and practices.
In
evaluating the information at our disposal concerning this audit, we have
excluded from our consideration all matters as to which the controlling
interpretation may be legal or accounting, rather than engineering and
geoscience. As in all aspects of oil and gas evaluation, there are
uncertainties inherent in the interpretation of engineering and geoscience data;
therefore, our conclusions necessarily represent only informed professional
judgment.
Supporting
data documenting this audit, along with data provided by Rosetta, are on file in
our office. The technical persons responsible for conducting this
audit meet the requirements regarding qualifications, independence, objectivity,
and confidentiality set forth in the Standards Pertaining to the Estimating and
Auditing of Oil and Gas Reserves Information promulgated by the Society of
Petroleum Engineers. We are independent petroleum engineers,
geologists, geophysicists, and petrophysicists; we do not own an interest in
these properties and are not employed on a contingent basis.
|
Sincerely,
|
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|
NETHERLAND,
SEWELL & ASSOCIATES, INC.
|
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Texas
Registered Engineering Firm F-002699
|
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/s/
C.H. (Scott) Rees III
|
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By:
|
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C.H.
(Scott) Rees III, P.E.
|
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Chairman
and Chief Executive Officer
|
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|
/s/
Danny D. Simmons
|
/s/
David E. Nice
|
||
|
By:
|
By:
|
||
|
Danny
D. Simmons, P.E. 45270
|
David
E. Nice, P.G. 346
|
||
|
President
and Chief Operating Officer
|
Vice
President
|
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Date
Signed: February 2, 2010
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Date
Signed: February 2, 2010
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WKB:JJH
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