Rosetta Resources shares could double - Barron's

NEW YORK, June 19 Sun Jun 19, 2011 12:09pm EDT

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NEW YORK, June 19 (Reuters) - Shares of oil and gas producer Rosetta Resources Inc (ROSE.O) could double as it exploits vast acreage in two shale fields, according to financial weekly Barron's.

One is Southern Alberta Basin in northern Montana and the other Eagle Ford in south Texas. Production is on pace to outstrip early estimates. [ID:nL3E7G92JT]

Fueled by Eagle Ford, earnings are expected to reach $1.80 a share this year and $3.30 next while cash flow is pegged just under $6 a share this year and near $9 in 2012, Barron's said.

The company said it found "large accumulations of oil in every well" after 11 vertical test wells were drilled in Alberta Basin, and has shelved the idea of a partner, opting to drill three horizontal wells on its own dime, Barron's said.

Rosetta's stock, which closed just under $43 a share on Friday, "sells well below a net asset value of $60 to $65, which by no means fully reflects the terrific potential of the Alberta Basin. Should that play pan out, the stock could double." (Reporting by Lynn Adler, editing by Bernard Orr)

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