Denbury Agrees to Sell $155 Million of Non-Core Assets
PLANO, Texas, Jan. 12, 2012 (GLOBE NEWSWIRE) -- Denbury Resources Inc. (DNR) ("Denbury" or the "Company") today announced that it has entered into a definitive agreement with privately held Petro Harvester Oil and Gas to sell certain non-core assets primarily located in central and southern Mississippi and in southern Louisiana for $155 million. The sale is subject to customary closing conditions and is expected to close by late February. Denbury anticipates using the sale proceeds to partially pay down its credit facility.
Proved reserves for the assets being sold were approximately 6.2 million barrels of oil equivalent as of December 31, 2010 and were 93% oil and 54% proved developed producing and 46% proved developed non-producing. These reserve estimates reflected SEC NYMEX oil prices at the time of $79.43 per barrel. Denbury's previously issued 2012 annual production guidance assumed daily production from the properties of approximately 1,400 barrels of oil equivalent per day. This estimated production was entirely from proved developed producing reserves. The Company continues to market its non-operated interest in the Greater Aneth oil field in Utah and therefore anticipates additional proceeds from asset sales in 2012.
Phil Rykhoek, Denbury's President and CEO, said, "With the announcement of a portion of our non-core asset sales and the earlier than expected start of oil production at our Oyster Bayou tertiary CO2 flood, 2012 is off to a solid start. The sale demonstrates execution on a portion of our 2012 plan, which we project will allow us to fund our previously announced $1.35 billion capital investment program and stock repurchases without incurring significant incremental debt."
Denbury Resources Inc. is a growing independent oil and natural gas company. The Company is the largest oil and natural gas operator in both Mississippi and Montana, owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River, and holds significant operating acreage in the Rockies and Gulf Coast regions. The Company's goal is to increase the value of acquired properties through a combination of exploitation, drilling and proven engineering extraction practices, with its most significant emphasis relating to tertiary recovery operations. For more information about Denbury, please visit www.denbury.com.
The Denbury Resources Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11385
This press release, other than historical financial information, contains forward-looking statements that involve risks and uncertainties, including forecasted 2012 production levels from properties being sold, potential proceeds from future asset sales, estimated 2012 capital expenditures, estimated debt levels, and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including Denbury's most recent reports on Form 10-K and Form 10-Q. These risks and uncertainties are incorporated by this reference as though fully set forth herein. These statements are based on engineering, geological, financial and operating assumptions that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks, and there is no assurance that these goals and projections can or will be met. Actual results may vary materially.
CONTACT: DENBURY CONTACTS: Phil Rykhoek, President and CEO, 972-673-2000 Mark Allen, Sr. VP and CFO, 972-673-2000 Jack Collins, Executive Director, Investor Relations, 972-673-2028
Source: Denbury Resources Inc. 2012 GlobeNewswire, Inc.