Rio
Vista
O
C T O
B E R 4, 2 0 0 6
Issuer
Free
Writing Prospectus
Filed
Pursuant To Rule 433
Registration Statement No. 333-128888
October
4,
2006
The
issuer has filed
a registration statement (including a
prospectus)
with the
SEC for the offering to which this
communication relates. Before you invest, you should read the
prospectus in that registration statement and other documents
the issuer has filed with the SEC for more complete information
about the issuer and this offering. You may get these
documents for free by visiting EDGAR on the SEC Web site at
communication relates. Before you invest, you should read the
prospectus in that registration statement and other documents
the issuer has filed with the SEC for more complete information
about the issuer and this offering. You may get these
documents for free by visiting EDGAR on the SEC Web site at
www.sec.gov.
dealer
participating in the offering will arrange to
send
you
the prospectus if you request it by calling (713) 335-4000.
The
prospectus relating to this offering is available by clicking on
the
following link:
following link:
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1
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D
isclaimer
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2
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Forward-Looking
Statements
Forward-Looking
Statements: All statements, other than statements of historicalfact,
included in
this presentation are forward-looking statements within the meaning
of the
Private Securities Litigation Reform Act of 1995. These statements
are based
upon current expectations and are subject to a number of risks, uncertainties
and assumptions, which are more fully described in Rosetta Resources
Inc.’s
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed
with the
Securities and Exchange Commission. These risks, uncertainties and
assumptions could cause actual results to differ materially from those
described
in the forward-looking statements. Rosetta Resources Inc. assumes no
obligation
and expressly disclaims any duty to update the information contained
herein
except as required by law.
D
e t e r d
i n g # 8 , R i o V i s t a , C a l i f o r n i
a
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3
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K
ey
Facts
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4
-
§
Rio
Vista is the
largest onshore gas field in
California
–
3.6
TCF produced to date.*
§
Peak
production was
600 MMCFE/D in 1945.*
§
Field
was
discovered in 1936 by Amerada.*
§
Interest
in Rio
Vista Field acquired from
Amerada
Hess by
Sheridan Energy January 25, 1999.
§
Sheridan
Energy
acquired by Calpine October 1, 1999
§
Sold
to Rosetta
Resources Inc. July 7, 2005.
*
California Department of
Conservation.
W
ell
Count
-
5
-
|
§
Currently
producing wells
|
135
|
|
§
Wells
waiting on completion
|
4
|
|
§
Shut-in
wells with recompletion potential
|
63
|
|
Total *
|
202
|
*
Gross
F
ield
Geology
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6
-
The
stratigraphic
section of Rio Vista is madeup of Cretaceous to Eocene marine rocks that
are
unconformably overlain by Miocene and Pliocene non-marine sediments.
All of the
section is known to be productive. The deepest well in Rio Vista has seen
the Forbes section at a TD of 15,050’.
The
gas field trap
is described as adownthrown rollover anticline that is elongate to the
NW.
The Eocene Domingene and Paleocene Hamilton formations, which are massive
marine
sandstones, have been the most prolific producers in Rio Vista. Middle
shelf sequences of the Eocene Capay and Paleocene Martinez have been
found
productive and there is considerable
production from deeper marine turbidites of the Cretaceous Petersen and Winters formations.
production from deeper marine turbidites of the Cretaceous Petersen and Winters formations.
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7
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2
0 0 0
’ t o 1 2 0 0 0 ’
R
io
Vista Type Log
N
ew
Technology
Implemented Since 1997
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8
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§
Hydraulic
fracturing – new to Sacramento Basin
§
3D
seismic survey
utilizing specialacquisition recording and processing procedures to optimize
data for amplitude versus offset interpretation (AVO)
§
Under-balanced
drilling in low pressure reservoirs
§
Petrophysical/log
processing using neuralnetwork
processing techniques
§
Frac
pack sand
control
P
roduction
Curves -
Gross
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9
-
Forecast
Rio
Vista
Daily Wellhead Production – Gross Operated
Current
rate = 52 MMCFE/D
R
io
Vista Wells
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10
-
(
N o v e m
b e r 5, 2 0 0 5 – S e p t e m b e r 2 5, 2
0 0 6)
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11-
R
io
Vista
Production
Total
130
Locations
R
io
Vista Production
P
r o d u c
t i o n b y R e s e r v o i r
52
Mmcfe/d
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12
-
S
o u t h e r n E x t e n s i o n
R
io
Vista – Upper Capay and Martinez
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13
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§
Recently
drilled
wells have extended the
Upper,
Middle, Lower
Capay and also
the Martinez within the Rio Vista Gas
Field.
the Martinez within the Rio Vista Gas
Field.
§
Two
Capay wells
drilled in the Southern
Extension,
RVGU 265
and RVGU 270
are producing 0.6 and 1.5 MMCFE/D
respectively and the two Martinez wells
drilled in the extension, Twitchell 4 and
Twitchell 5 are producing 1.8 and 3.2
MMCFE/D respectively.
are producing 0.6 and 1.5 MMCFE/D
respectively and the two Martinez wells
drilled in the extension, Twitchell 4 and
Twitchell 5 are producing 1.8 and 3.2
MMCFE/D respectively.
§
This
extension has
added 18 Bcf of
proved
and probable
reserves to date.
Capay
Extension
Martinez
Extension
§
Acquiring
12.0 sq.
mi. (~7700 acres)proprietary 3D seismic data over the Southern Rio Vista
Gas
Unit.
Approximately 70% (~ 5400 acres) of the 3D covers acreage with no seismic coverage.
Approximately 70% (~ 5400 acres) of the 3D covers acreage with no seismic coverage.
§
Prospective
zones
include the
Nortonville,
Capay,
Hamilton,
Martinez, and McCormick.
Martinez, and McCormick.
§
Only
17 wells in
survey – only 4
below 5000’.
§
20
BCF reserve
potential.
B
r a d f o
r d I s l a n d 3 D S h o o t
R
io
Vista
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14
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§
Over
1.1 Tcf of gas
produced to the North,
East
and South of
Rio Vista field. Only 5
penetrations to date in this 90-square mile
field area.
penetrations to date in this 90-square mile
field area.
§
Welch
with
producing rate
of 3 MMcfe/d.
13
well drilled in April in the Winters§
W
K1
but not logged
due to hole conditions.
ilcox
13 has good mud log shows in the§
Wilcox
14 well has
good mud log shows and
calculated
pay on
open hole logs but tests
show zone to be wet. Maddie location to be
drilled with deep rig in 2007.
show zone to be wet. Maddie location to be
drilled with deep rig in 2007.
§
Identification
of
additional locations is
currently
underway.
Plans underway for K1
test in Wilcox 13 fault block.
test in Wilcox 13 fault block.
Rio
Vista
Unit
K
1 & W i n t e r s P l a
y
R
io
Vista
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15
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C
ash
Cost Structure 2006
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16
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|
Rio
Vista
|
Total
Company
|
|||
|
Costs/MCFE
|
||||
|
§
Direct
LOE
|
$
|
0.70
|
$
|
0.64
|
|
§
Ad
Valorem Tax
|
0.47
|
0.22
|
||
|
§
Production
Tax
|
0.00
|
0.21
|
||
|
§
Workover
|
0.04
|
0.14
|
||
|
§
Insurance
|
0.01
|
0.02
|
||
|
Total
Lifting Costs
|
$
|
1.22
|
$
|
1.23
|
C
ost
Control Innovation
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17
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F
ield
Trip
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18
-
§
Rio
Vista
Office
§
Detering
Compressor
§
Big
Brannan
§
Baby
Brannan
§
Emigh
#1
F
ield
Delivery Points
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19
-
•
CPN
Delivery
Points
§
Main
CPN Delivery
Point
(High
Pressure)
§
Secondary
CPN
Delivery
Point
(High
Pressure)
•
PG&E
Delivery
Points
§
Twitchell-PG&E
Delivery Point
(Low
Pressure)
§
Main-PG&E
Delivery Point
(High
Pressure)
§
West-PG&E
Delivery Point
(High
Pressure)
West-PG&E
Delivery
Point
Secondary-CPN
Delivery
Point
Main-CPN
Delivery
Point
Main-PG&E
Delivery
Point
Twitchell-PG&E
Delivery
Point
C
ompressor
Stations
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20
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|
Comp
Station
|
BHP
|
Suction
PSIG
|
Discharge
PSIG
|
Capacity
MCFPD
|
Market
Delivery
Capacity |
Current
MCFPD
|
Deliver
To
|
|
Deterding
|
3,100
|
3
|
850
|
9,000
|
9,000
|
4,500
|
Calpine
/PG&E
|
|
Big
Brannan
|
6,600
1,600
|
75
|
900
|
37,500
9,000
|
37,500
|
21,000
|
Calpine/PG&E
|
|
Baby
Brannan
|
|
3
|
80
|
|
0
|
0
|
Big
Brannan
|
|
46,500
|
Total
|
G
as
Marketing
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21
-
C
a l p i n
e G a s S a l e s C o n t r a c
t S u m m a r y
§
Covers
all
production from leases in producing as of
May
2006 (including
new wells).
§
Expires
December
31, 2009 with a Right of First
Refusal
for an
additional 10 years.
§
Price
based on
published index market prices for Sac
Basin
(PG&E
Citygate)
§
Gas
is delivered to
Calpine pipeline for delivery to
Calpine
power
plants or PG&E during plant
curtailments.
curtailments.
§
Gas
is paid for one
business day in arrears to minimize
credit
exposure.
G
athering
System
Projects
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22
-
§
PG&E
Gathering System
Ø
Reduce
operating
cost and increase gathering
efficiencies
Ø
Assets
Identified
and PSA complete
Ø
Requires
851 filing
with PUC
Ø
Expected
acquisition
in mid to late 2007
§
PG&E
Bradford
Island Pipeline
Ø
PG&E
line from
emerging development area
Ø
Completing
due
diligence
Ø
Expected
closing in
November (no PUC filing)
§
PG&E
Twitchell
Island Pipeline
Ø
Provides
additional
capacity on East side of the
unit
Ø
Under
evaluation
§
ConocoPhillips
Pipelines
Ø
Abandoned
lines that
extend into future
development
areas
Ø
Started
preliminary
negotiations
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23
-
alifornia
Demand
C
California
Gas Production
13%
87%
Gas
Imports
State
Avg.
Gas Use = 6 bcf/d
Calpine
Local
Gas Use 350 MMCFE/D
|
Calpine
Power
Plants
|
MW/h
|
MMcf/d
|
|
|
Greenleaf
1
|
50
|
11
|
|
|
Greenleaf
2
|
50
|
11
|
|
|
Feather
River
|
35
|
10
|
|
|
Sutter
|
500
|
90
|
|
|
DEC
|
800
|
130
|
|
|
LMEC
|
500
|
80
|
|
|
Dow
|
65
|
18
|
|
|
Total
|
2,000
|
350
|
*
California Energy Commission Report Natural Gas Facts
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24
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H
istorical
Prices
PG&E
H
H
GD vs.
PG&E Historical
-
25
-
-
26
-
B
asis
Differential
HH GD vs. PG&E
-
27-
P
G&E
as a % of
Henry Hub GD
