Denbury Agrees to Acquire Rocky Mountain Properties for $1.05 Billion

Denbury Agrees to Acquire Rocky Mountain Properties for $1.05 Billion

             Builds on Leading Position in Cedar Creek Anticline

Announces Energy Conference Presentation and Fourth Quarter Results Conference

PLANO, Texas, Jan. 15, 2013 (GLOBE NEWSWIRE) -- Denbury Resources Inc.
(NYSE:DNR) ("Denbury" or the "Company") today announced that it has entered
into an agreement to acquire producing property interests in the Cedar Creek
Anticline ("CCA") of Montana and North Dakota from a wholly-owned subsidiary
of ConocoPhillips for $1.05 billion cash. The assets to be purchased include
additional interests in certain of Denbury's existing operated fields in CCA
along with operating interests in other CCA fields. 

The acquisition is subject to satisfactory completion of customary title and
environmental due diligence, as well as the satisfaction of customary closing
conditions.The acquisition is expected to close near the end of the first
quarter of 2013 with a January 1, 2013 effective date. The purchase price is
subject to standard adjustments for revenues and costs of the properties to be
acquired from the effective date to the closing date.

Denbury plans to fund the purchase out of the approximately $1.3 billion of
cash received from its Bakken sale and asset exchange with ExxonMobil
completed in December 2012, $1.05 billion of which was deposited in qualified
trust accounts to allow for potential future asset purchases that would
qualify for like-kind exchange treatment.The utilization of federal tax rules
on like-kind exchanges for both the CCA properties to be acquired and the
Rocky Mountain carbon dioxide ("CO[2]") reserves acquired in the ExxonMobil
exchange transaction is expected to allow Denbury to defer more than $400
million of the $500 million of cash taxes originally estimated on the Bakken
transaction prior to completing the CO[2] reserves acquisition and agreeing to
acquire the CCA properties.

Denbury estimates that at year-end 2012 the proved conventional (non-tertiary)
reserves associated with the CCA properties to be acquired were approximately
42 million barrels of oil equivalent of which approximately 95% was oil and 4%
natural gas liquids and 91% was proved developed producing.Net to the
acquired interest, Denbury estimates current average production from the
to-be-acquired properties at approximately 11,000 barrels of oil equivalent
per day ("BOE/d"), of which 99% is oil and natural gas liquids.Assuming the
acquisition closes at the end of the first quarter of 2013, Denbury estimates
that its full-year 2013 average daily production would increase by
approximately 7,700 BOE/d. 

Transaction Highlights

  *CCA is a major geological feature in eastern Montana and western North
    Dakota that extends for approximately 126 miles in a northwest-southeast
    direction and ranges from two to six miles in width.CCA is a series of
    producing oil units, each of which could be considered a field by
    itself.Commercial quantities of oil were first discovered in the South
    Pine Unit of CCA in the early 1950s.The original oil in place at all CCA
    fields, including those not owned by Denbury, is estimated at over three
    billion barrels of oil.
  *CCA produces from numerous reservoirs, although the primary reservoir is
    the Red River formation, which is a series of carbonate reservoirs that
    have produced significant amounts of oil.The gross producing interval at
    CCA is approximately 2,000 feet thick, and ranges in depth from
    approximately 7,000 feet to 9,000 feet.The reservoir characteristics of
    CCA are similar in many respects to oil fields successfully flooded with
    CO[2] in the Permian Basin of West Texas and Weyburn Field in the Canadian
    Williston Basin.
  *CCA is located approximately 110 miles north of Denbury's Bell Creek
    Field, which the Company plans to start flooding with CO[2] in the first
    half of 2013, and the current terminus of the recently completed Greencore
    Pipeline which will initially transport CO[2] from Denbury's source in
    central Wyoming. Denbury currently plans to extend the Greencore Pipeline
    both north and southwest in order to deliver the CO[2] necessary to flood
    its CCA fields. 
  *Denbury is currently designing a CO[2] development plan for its CCA
    assets, and will incorporate the newly acquired CCA properties into these
    plans.The Company estimates that a CO[2] flood of the to-be-acquired
    properties could recover between 60 million and 80 million barrels of
    oil.As a result, Denbury estimates a CO[2] flood of its CCA assets,
    including the assets to be acquired, could recover between 260 million to
    280 million barrels of oil.

Management Comment

Phil Rykhoek, Denbury's President and CEO, commented, "This transaction,
combined with the recently completed ExxonMobil transaction, results in the
trade of our Bakken assets for three assets with significant oil production,
proved reserves, cash flow and CO[2] EOR potential, along with additional
CO[2] reserves and a little bit of cash, all in a tax efficient
manner.Strategically, we are now purely focused on what we do best, CO[2]
enhanced oil recovery, which we believe offers one of the lowest risk, and
most compelling rates of return in the oil and gas industry today.

"We estimate that CO[2] flooding these newly acquired and to-be-acquired
properties (Hartzog Draw Field, Webster Field, and CCA properties) will allow
us to recover a combined estimated 140 million to 185 million barrels of
otherwise stranded oil.Also, these assets currently produce almost as much
oil equivalent as our divested Bakken area assets while generating
substantially more free cash flow.Our interests in CCA make up our largest
oil property in the Rocky Mountain region and are a key strategic reason we
acquired Encore in 2010 to expand our successful enhanced oil recovery
strategy to a new region.The acquisition of additional assets in CCA should
allow us to benefit from economies of scale and to leverage our technical
knowledge and planned CO[2] transportation infrastructure.

"On a separate note, we believe our common stock remains undervalued and, with
our improved liquidity position, we intend to continue to execute our
repurchase program.Through January 11, 2013, we had repurchased approximately
20 million shares since we announced the Bakken transaction in September 2012
to bring our total purchases under the program since its inception in October
2011 to approximately 34 million shares at an average cost of $15 per share,
or $507 million.Repurchases to date under the program effectively improve our
per-share metrics by about 8.5% through reduction of our outstanding shares.
Approximately $265 million of additional repurchases remain currently
authorized under our repurchase program."

Presentation and Fourth Quarter 2012 Results Conference Call

Denbury plans to post an updated corporate presentation to its website,, this morning that includes additional details on the CCA
acquisition, which presentation will be available on such website for
approximately three weeks after posting. In addition, the Company plans to
announce its estimated year-end 2012 proved oil and natural gas reserves,
estimated average annual daily oil and natural gas production rate for 2012,
and estimated 2012 capital expenditures in a news release on or about Monday,
February 4, 2013.Also, Phil Rykhoek, Denbury's President and CEO, will be
presenting at the Credit Suisse Energy Summit on Wednesday, February 6, 2013,
at 7:30 A.M. (Mountain) in Vail, Colorado. Denbury plans to post the slides
for the presentation to its website on February 5, and such presentation will
be webcast live and otherwise be available on Denbury's website for
approximately 30 days thereafter.

Denbury will host a conference call to review and discuss fourth quarter 2012
financial and operating results on Thursday, February 21, 2013 at 10:00 A.M.
(Central).Results will be released before the market opens on the day of the
conference call and the full text of the news release will be available on the
Company's website.Individuals who would like to participate should dial the
applicable dial-in number listed below ten minutes before the scheduled start
time and provide the confirmation number referenced below to the operator.

What: Fourth Quarter 2012 Results Conference Call
Date: Thursday, February 21, 2013
Time: 10:00 A.M. (Central) / 11:00 A.M. (Eastern)
Dial-in number: 800.230.1096
International dial-in number: 612.332.0725
Confirmation number: 260589

To access a live audio webcast of the conference call, please visit the
investor relations section of the Company's website.The call will be archived
on the website for at least 30 days, and a telephonic replay will be
accessible for one month, after the call by dialing 800.475.6701 or
320.365.3844 and entering confirmation number 260588.

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 news release contains forward-looking statements that involve risks and
uncertainties including estimated oil equivalent reserves or reserves
potential, original oil in place, future volumes recoverable with a CO[2]
flood, daily production volumes of the acquired assets, tax payments on
property sale proceeds, 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 news 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 risk.

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

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