Denbury Announces Bakken Sale and Asset Exchange

Denbury Announces Bakken Sale and Asset Exchange

Acquired Assets Build on Denbury's Leading Position in Enhanced Oil Recovery

PLANO, Texas, Sept. 20, 2012 (GLOBE NEWSWIRE) -- Denbury Resources Inc.
(NYSE:DNR) ("Denbury" or the "Company") announced that it has entered into an
agreement to sell its Bakken assets in North Dakota and Montana to Exxon Mobil
Corporation and its wholly owned subsidiary XTO Energy Inc. (collectively,
"ExxonMobil"). Denbury will receive $1.6 billion in cash, subject to closing
adjustments, and ExxonMobil's operating interests in Webster Field in Texas
and Hartzog Draw Field in Wyoming, both of which are ideal candidates for
carbon dioxide ("CO[2]") flooding and close to Denbury's existing or planned
CO[2] pipelines.In addition, Denbury has agreed in principle to either
purchase an interest in the CO[2] reserves in ExxonMobil's LaBarge Field in
southwestern Wyoming or purchase incremental CO[2] from that field, on terms
and conditions to be mutually agreed upon by the parties.The purchase of an
interest in CO[2] reserves would reduce the amount of cash received by

The transactions are subject to satisfactory completion of customary title and
environmental due diligence, as well as the satisfaction of customary closing
conditions and, in the case of the LaBarge Field CO[2] transaction, the
entering into of definitive agreements.The transactions are expected to close
late in the fourth quarter of 2012 with a July 1, 2012 effective date. The
sale price is subject to standard adjustments for revenues and costs of the
respective assets from the effective date to the closing date. 

Denbury intends to use the cash proceeds from the transaction to pursue the
purchase of additional oil fields in the Gulf Coast or Rocky Mountain regions
that are suited for CO[2] flooding, to fund capital expenditures, and/or to
repay outstanding debt under its bank credit facility.Additionally, Denbury
plans to resume its stock repurchase program begun in October 2011 under which
$195 million of the $500 million of authorized repurchases have been
made.Assuming no additional assets are acquired with the cash proceeds in a
manner that would qualify for like-kind exchange treatment for federal income
tax purposes, Denbury estimates that its after-tax cash proceeds from the
transaction (without giving effect to closing adjustments) will be
approximately $1.1 billion.

Proved reserves attributed to Denbury's Bakken assets being sold were
approximately 96 million barrels of oil equivalent as of December 31, 2011 and
were 84% oil and natural gas liquids and 26% proved developed
producing.Average production from the properties in the first half of 2012
was about 15,400 barrels of oil equivalent per day ("BOE/d"), of which 88% was
oil and natural gas liquids.Denbury's previously issued 2012 annual
production guidance assumed average daily production from the Bakken
properties of between 14,350 BOE/d and 16,350 BOE/d.

Asset Highlights

Webster Field – Gulf Coast Region:

  *Webster Field was discovered in 1937 by Humble Oil and oil production from
    the field peaked in the late 1970s at over 67,000 barrels per day
    ("Bbls/d"). Denbury is acquiring a nearly 100% working interest and nearly
    80% net after royalty interest in the field which is located approximately
    eight miles northeast of both Denbury's Hastings CO[2] flood and the Green
    Pipeline which transports CO[2] from Denbury's source in Mississippi.
  *Net to Denbury's acquired interest, the field is producing approximately
    1,000 BOE/d, approximately 86% of which is oil.Conventional
    (non-tertiary) proved reserves are estimated at approximately 3 million
    barrels of oil equivalent, all of which are proved developed producing.
  *Webster Field is similar to Denbury's Hastings and Thompson fields,
    producing oil from the Frio zone at similar depths, and is also believed
    to be an ideal candidate for a CO[2] flood.Denbury estimates the field's
    original oil in place ("OOIP") at approximately 900 million barrels and
    the zones initially targeted for CO[2] flood are estimated to have
    approximately 550 million barrels of OOIP.Based upon an estimated
    recovery factor of between 13% and 17% of the OOIP for the targeted Frio
    zones, Denbury estimates that a CO[2] flood of Webster Field could
    potentially recover an estimated 60 million to 75 million barrels of oil,
    net to its interest.

Hartzog Draw Field – Rocky Mountain Region:

  *Hartzog Draw Field, located in the Powder River Basin of northeastern
    Wyoming, was discovered in 1975 and oil production from the field peaked
    in 1978 at over 35,000 Bbls/d.In the transaction Denbury is receiving an
    83% working interest and 71% net after royalty interest in the oil
    producing Shannon Sandstone zone and a 67% working interest and 53% net
    after royalty interest in the natural gas producing Big George Coal zone.
    The field is located approximately 12 miles from Denbury's Greencore
    Pipeline which is under construction and anticipated to be completed in
    late 2012, and which will transport CO[2] from Denbury's source near Lost
    Cabin, Wyoming to its Bell Creek Field in Montana.
  *Net to Denbury's acquired interest, the field is producing approximately
    2,600 BOE/d, approximately 52% of which is oil.Conventional
    (non-tertiary) proved reserves are estimated at approximately 7 million
    barrels of oil equivalent, all of which are proved developed producing and
    58% of which is oil.
  *Denbury estimates the Hartzog Draw Field's OOIP at approximately 370
    million barrels and, based upon an estimated recovery factor of between 8%
    and 11% of this amount, that a CO[2] flood of the field could potentially
    recover an estimated 20 million to 30 million barrels of oil, net to its

LaBarge Field:

  *ExxonMobil has agreed in principle to either sell Denbury roughly
    one-third of the LaBarge field CO[2] reserves or to expand the volume of
    CO[2] it will sell to Denbury under an existing sales contract, subject to
    completion of definitive documentation.Based on the current capacity of
    the LaBarge plant and availability, either option would allow for the
    delivery of up to 115 MMcf/d of CO[2].The CO[2] would initially be used
    to flood Denbury's Bell Creek Field and the Hartzog Draw Field being
    acquired in this transaction.

Management Comment

Phil Rykhoek, Denbury's President and CEO, commented, "We acquired our Bakken
assets in the 2010 Encore acquisition.We are pleased with our development
activities in the Bakken, which have increased the value of these assets from
very little at the time of the acquisition to their current value of nearly $2
billion.This trade allows us to realize that value and leverage our Bakken
position to acquire two of the top oil fields in our core operating regions
that are candidates for CO[2] flooding, while also adding incremental CO[2]
resources in the Rocky Mountain region and increasing liquidity by over $1
billion.We can now focus on what Denbury does best, CO[2] enhanced oil
recovery ("EOR"), which we believe offers one of the most compelling rates of
return in the oil and gas industry today."

"This trade illustrates our CO[2] EOR strategy wherein we start with a large
anchor oil field, acquire or build the necessary CO[2] supply and
transportation infrastructure, and then acquire other oil fields in the
expansion area that we can flood with CO[2].This concept works particularly
well for the incremental acquisitions, which generally have better economics
since the significant infrastructure dollars are already invested and only
minor CO[2] pipeline expansions are required.Webster Field will become the
fifth acquired Texas oil field since we began our expansion into the state
with the construction of the Green Pipeline completed in 2010.Hartzog Draw
Field marks our first significant oil field acquisition in the Rocky Mountain
region since we entered the area with our 2010 acquisition of
Encore.Combined, these two fields will add an estimated 80 million to 105
million barrels of potentially recoverable oil to our existing CO[2] flood
inventory.We are also pleased to have the opportunity to secure additional
CO[2], which will allow us to accelerate the development of Hartzog Draw Field
and potentially defer a portion of our planned Riley Ridge development."

"We are continuing to pursue other oil field acquisitions that may qualify for
like-kind exchange treatment for federal income tax purposes, although based
upon marketplace conditions at this time, we currently do not expect to use a
substantial portion of the cash proceeds for this purpose.We initially expect
to pay down our outstanding bank debt with a portion of the transaction
proceeds.We also plan to renew our stock repurchase program, as we deem
appropriate.We are reviewing our development plans in light of this trade and
may consider revising the order and timing of our future CO[2] floods.With
the sale of the Bakken assets, we will have even more control over the timing
and magnitude of our capital expenditures, as we operate all of our remaining
significant assets.We are excited about this trade as we continue to enhance
and improve our already profitable CO[2] EOR strategy."

Conference Call and Presentation

Denbury management will discuss the transaction on a conference call that is
scheduled for today, September 20, 2012 at 10:00 A.M. (Central).Interested
parties are invited to listen to a live broadcast of the conference call that
will be accessible through the Company's website at
Company will post an updated corporate presentation with additional
information on the transaction to its website in advance of the conference

Denbury Resources Inc. is a growing independent oil and natural gas company.
The Company is the largest combined oil and natural gas operator in both
Mississippi and Montana, owns the largest reserves of CO[2] used for tertiary
oil recovery east of the Mississippi River, and holds significant operating
acreage in the Rocky Mountain 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 oil recovery operations. For
more information about Denbury, please visit

The Denbury Resources Inc. logo is available at

This press release contains forward-looking statements that involve risks and
uncertainties including estimated oil reserve potential, original oil in
place, future volumes recoverable with a CO[2] flood, daily production volumes
of the acquired assets, after-tax cash proceeds from property sales, 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. The
estimates of potential reserves in this press release, comprised of proved,
probable and possible reserves based on the most recent drilling and technical
data available to the Company, are more speculative than estimates of proved
reserves and are subject to greater uncertainties, and accordingly the
likelihood of recovering these reserves is subject to substantially greater

         Phil Rykhoek, President and CEO
         Mark Allen, Senior Vice President and CFO
         Jack Collins, Executive Director, Investor Relations

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