Rosetta Resources Inc. said it achieved double-digit growth in production and proved reserves while it “significantly reduced” well costs during 2012. The company said it replaced 472% of production from all sources at a reserve replacement cost of $10.03/boe.

“During 2012 we ramped up our development efforts in the Eagle Ford Shale, expanding our drilling program into four areas,” said CEO Randy Limbacher. “Our results were favorably impacted by rapidly decreasing well costs during the second half of the year that further enhanced asset values and will provide greater flexibility in implementing our 2013 capital program.”

Last month the company said it was devoting the lion’s share of its spending this year to the Eagle Ford (see Shale Daily, Dec. 12, 2012).

Fourth quarter production averaged a record 44,300 boe/d, up 38% from the same period in 2011 and 20% from the prior quarter. Total liquids production for the fourth quarter reached all-time high levels, averaging 27,600 b/d. Total liquids represent 62% of total production for the period, up from 49% a year ago and 60% in the third quarter of 2012.

For the full-year, production averaged 37,200 boe/d, while total daily production increased by 35% versus the prior year and total liquids production increased by 76% over that same period. Production growth throughout the year was driven by continued success in the development of Eagle Ford assets, Rosetta said. The 2012 exit rate averaged 47,3000 boe/d, and production is currently averaging 49,000 boe/d, of which 63% is liquids, the company said.

Drilling and completion costs declined in the Eagle Ford areas with anticipated price decreases for services and materials and improvements in well completion design, Rosetta said. Total well costs in the Gates Ranch and Briscoe Ranch areas and the Lasseter and Eppright lease in the Central Dimmit area are currently averaging between $6.5 and $7.0 million per well. Drilling and completion costs in these areas are on average $1.0 million per well lower than prior guidance. On the remaining central Dimmit area leases, Vivion and Light Ranch, total well costs are projected to range from $5.5 to $6.0 million per well.

Proved reserves as of Dec. 31 increased by 25% to 201 million boe composed of 44.4 million bbl of crude oil and condensate, 71.6 million bbl of natural gas liquids and 509 Bcf of natural gas. Included in the total are 65.6 million boe of reserves additions primarily from success in the Eagle Ford offset by 10.6 million boe of reserves divested during the year and 1.7 million boe in net downward revisions.

Of total proved reserves, 58% are liquids and 37% are classified as proved developed.

“The company continues its solid operational track record in the Eagle Ford, and given that current production levels are already at the high end of 2013 targets, guidance looks conservative to us,” said Wells Fargo Securities analysts in a recent note. “As a result, we are increasing our estimates to $2.91 and $3.69 in 2012 and 2013 respectively from $2.85 and $3.48 previously.”