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What: Shares of oil and gas explorer Rosetta Resources (NAS: ROSE) are sinking today, down by as much as 14%, after the company reported disappointing results from its exploratory well program in the Southern Alberta Basin.
So what: Out of the four wells drilled in the basin, two stabilized production of roughly 154 and 104 barrels of oil equivalent per day. For reference, one analyst had been expecting each well to come in at around 250 to 300 boe/d.
Now what: Rosetta CEO Randy Limbacher said the company will complete its current horizontal drilling program in the basin, located in northwestern Montana, and adjust its exploration efforts accordingly. The company will hold its current position in a wait-and-see approach. On the flip side, the company did say that it has been seeing upside from production growth in its Eagle Ford Shale assets in Texas.
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