Denbury Announces Proved Reserves and Production

Denbury Announces Proved Reserves and Production

                  Increases Tertiary Proved Reserves by 36%

      Increases Quarterly Tertiary Production by 8% Sequentially and 21%

PLANO, Texas, Feb. 4, 2013 (GLOBE NEWSWIRE) -- Denbury Resources Inc.
(NYSE:DNR) ("Denbury" or the "Company") today announced that its total
estimated proved oil and natural gas reserves at December 31, 2012 were 409
million barrels of oil equivalent ("MMBOE"), consisting of 329 million barrels
of crude oil, condensate and natural gas liquids, and 482 billion cubic feet
(80 MMBOE) of natural gas. Reserves were 80% liquids and 60% proved developed,
and 49% of such reserves were attributable to Denbury's carbon dioxide
enhanced oil recovery ("CO[2] EOR" or "tertiary") operations. Nearly all of
Denbury's reserves not attributable to CO[2] EOR operations at year-end 2012
relate to planned future CO[2] EOR operations. Also, year-end 2012 proved
reserve estimates do not include the estimated 42 MMBOE of proved reserves
associated with Denbury's pending acquisition of property interests in the
Cedar Creek Anticline of Montana and North Dakota from ConocoPhillips in a
transaction expected to close near the end of the first quarter of 2013 (the
"CCA Acquisition"). 

Denbury's aggregate proved reserve additions during 2012 were 114 MMBOE,
primarily consisting of 57 MMBOE from CO[2] EOR operations at Hastings and
Oyster Bayou fields, 26 MMBOE from the acquisition of interests in the
Thompson, Webster, and Hartzog Draw fields that Denbury plans to flood with
CO[2] in the future, and additions of 11 MMBOE in the Bakken area prior to its
sale in the fourth quarter of 2012.These 2012 additions were offset by 26
MMBOE of production, the sale during the year of properties with combined
proved reserves of 124 MMBOE, and minor revisions, including those related to
lower natural gas prices. Total tertiary oil reserves at December 31, 2012
were 201 MMBOE, up 36% from the prior year-end level of 148 MMBOE, primarily
as a result of initial bookings at Hastings and Oyster Bayou fields. 

The estimated discounted net present value of Denbury's proved reserves at
December 31, 2012, before projected income taxes, using a 10% per annum
discount rate ("PV-10 Value", a non-GAAP measure), was $9.9 billion, using
first-day-of-the-month 12-month average 2012 prices of $94.71 per barrel
("Bbl") for oil and $2.85 per million British thermal unit ("MMBtu") for
natural gas.This represents a $0.7 billion decline from the prior year level
as the strategic sale of properties with a PV-10 Value of $1.9 billion at
year-end 2011 (using first-day-of-the-month 12-month average 2011 prices of
$96.19 per Bbl for oil and $4.16 per MMBtu for natural gas) and the impact of
lower oil and natural gas prices more than offset increases from additional
tertiary reserves and acquired properties.The year-end 2012 PV-10 Value of
proved reserves attributable to Denbury's tertiary oil activities was $6.8
billion, a $1.1 billion, or 19%, increase from the prior year level. Also,
year-end 2012 PV-10 Values do not include any PV-10 Value of the pending CCA
Acquisition, which is currently estimated at $1.1 billion using the same
commodity price assumptions as those in Denbury's year-end 2012 report.On a
pro forma basis, it is currently estimated that the CCA Acquisition would
increase the Company's PV-10 Value to approximately $11 billion.Following is
a preliminary reconciliation of the change in the Company's proved oil and
natural gas reserve quantities between December 31, 2011 and December 31,
2012, along with the pro forma impact of the pending CCA Acquisition:

Balance at December 31, 2011                     462
Extensions & discoveries and improved recoveries 86
Acquisitions                                    28
Sales                                            (124)
Estimated revisions due to price changes         (7)
Other estimated revisions                        (10)
Estimated 2012 production                        (26)
Balance at December 31, 2012                     409
Estimated reserves from pending CCA Acquisition  42
Estimated pro forma reserves                     451

Denbury's estimated proved CO[2] reserves at year end 2012, increased 8% to
9.6 trillion cubic feet ("Tcf").CO[2] reserves are presented on a gross
working interest or 8/8^ths basis, except those reserves recently acquired
from ExxonMobil which are reported net to Denbury's interest.Of these total
CO[2] reserves, 6.1 Tcf were in the Gulf Coast region and 3.5 Tcf were in the
Rocky Mountain region.Denbury's acquisition of approximately one-third of
ExxonMobil's CO[2] reserves in LaBarge Field in Wyoming added approximately
1.3 Tcf to its Rocky Mountain region CO[2] reserves.

Preliminary 2012 and Fourth Quarter Production

Based on preliminary data, Denbury's average annual production rate for 2012
was 71,689 barrels of oil equivalent per day ("BOE/d") which included 35,206
barrels per day ("Bbls/d") from tertiary properties and 14,847 BOE/d from
properties sold in 2012.Preliminary estimated total fourth quarter 2012
production was 70,116 BOE/d which included 37,550 Bbls/d from tertiary
properties and 10,064 BOE/d from the Bakken area assets the Company sold
during such quarter. Quarterly total continuing production, which excludes
production from the Bakken area assets sold during the fourth quarter of 2012,
was 60,052 BOE/d, up 7% from the prior quarter continuing production levels,
driven by an 8% sequential increase in tertiary production and a 6% sequential
increase in non-tertiary production.Fourth quarter of 2012 tertiary
production was 21% higher than the year ago quarter primarily due to strong
contributions from the Company's newest CO[2] floods at Hastings and Oyster
Bayou fields and the expansion of existing CO[2] floods at Delhi and Tinsley
fields. The sequential increase in non-tertiary production during the fourth
quarter of 2012 was primarily the result of properties acquired from
ExxonMobil during such quarter, which contributed approximately 1,200 BOE/d to
quarterly production.Denbury estimates current average net production from
the properties to be acquired in the pending CCA Acquisition at approximately
11,000 BOE/d, of which 99% is oil and natural gas liquids.Assuming the
acquisition closes as currently scheduled near the end of the first quarter of
2013, Denbury estimates the properties would contribute approximately 7,700
BOE/d to its full-year 2013 average daily production.

Preliminary 2012 Capital Expenditures

Denbury estimates that 2012 capital expenditures, excluding expenditures on
acquisitions, capitalized interest, and tertiary startup costs, were
approximately $1.45 billion, which was in-line with the budgeted amount. Of
this amount, approximately $1.1 billion was spent on oil and natural gas
development and exploration activities, with the remainder primarily spent on
CO[2] sources and infrastructure.Capital expenditures on properties Denbury
sold in 2012 were approximately $0.4 billion.

Management Comment

Phil Rykhoek, Denbury's President and CEO, commented, "We finished a highly
successful year for Denbury on a positive note with strong fourth quarter
production.Annual production from our core business, CO[2] EOR, increased 14%
year-over-year in 2012, and was in the upper half of our production
estimates.Also, the stock repurchase program we commenced in the fourth
quarter of 2011 effectively improves our per-share metrics by about 8.5%
through reduction of our outstanding shares.Our strong fourth quarter
tertiary production rate sets us up to continue to deliver on our production
estimates in 2013.

"Over the last year, we completed or entered into agreements on several
strategic and tax efficient property transactions which not only add value,
but more importantly, make us a nearly-pure CO[2] EOR company.These asset
transactions (i) increased our un-booked EOR reserve potential by 208 MMBOE
(using the mid-point of the estimated ranges), a slight increase over our
estimated un-booked reserve potential of the assets sold and a significant
increase in expected value, (ii) nearly replaced the production of sold assets
with that from the acquired or to-be-acquired assets, (iii) exchanged proved
reserves with a high proved undeveloped component for reserves that are nearly
all proved developed, which significantly increases our current free cash
flow, and (iv) increased our Rocky Mountain CO[2] reserves by 1.3 Tcf.We are
now well positioned to execute on our long-term strategy, which we believe
will continue to increase shareholder value for many years to come.

"Also of note, we recently began accepting CO[2] from our first man-made
("anthropogenic") source, Air Products' Port Arthur hydrogen production
facility in Texas for injection into our operated Hastings Field.This project
illustrates our unique ability to use and store anthropogenic CO[2] that would
otherwise be released into the atmosphere.

"At Denbury we have built a highly attractive asset base with excellent
visibility on long-term oil production growth, a strong balance sheet that
gives us tremendous financial flexibility and a workforce of highly technical,
dedicated, and motivated employees focused on executing our plan.We look
forward to more positive results in 2013 as we continue to build on our highly
profitable, low-risk oil platform."

Presentation and Fourth Quarter 2012 Results Conference Call

Phil Rykhoek 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, which will
include additional detail on estimated year-end 2012 reserves and 2012
production, to its website the evening of 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 260589.

Information on Reserves and PV-10 Value

Based upon Securities and Exchange Commission reserves regulations, Denbury's
proved reserves at December 31, 2012 were computed using
first-day-of-the-month 12-month average 2012 prices of $94.71 per Bbl of oil
(based on NYMEX prices) and a Henry Hub cash price of $2.85 per MMBtu of
natural gas, with necessary adjustments applied to each field to arrive at the
net prices received by the Company. Using these prices, the PV-10 Value of
Denbury's estimated proved reserves was $9.9 billion at December 31,
2012.Denbury's proved reserves at December 31, 2011 were computed using
first-day-of-the-month 12 month-average 2011 prices of $96.19 per Bbl of oil
and $4.16 per MMBtu of natural gas. PV-10 Value is a non-GAAP measure and is
different than the Standardized Measure of Discounted Future Net Cash Flows
("Standardized Measure"), which measure will be presented in Denbury's
upcoming Form 10-K, in that PV-10 Value is a pre-tax number, while the
Standardized Measure includes the effect of estimated future income taxes.
The Company estimates that its PV-10 Value at December 31, 2012 would change
by $164 million for each dollar change in the oil price per barrel and $10
million for each $0.10 change in the natural gas price per MMBtu, if oil and
natural gas prices were to change by relatively minor amounts. If oil and/or
natural gas prices were to change significantly, it is likely that the price
differentials and cost assumptions used in estimating the proved reserves
would also need to be adjusted. Denbury's 2011 and 2012 year-end oil and
natural gas reserves and its proved CO[2] reserve quantities were prepared by
the independent reservoir engineering firm of DeGolyer and MacNaughton.

Denbury 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

In this press release Denbury provides estimated year-end 2012 proved reserves
information and preliminary production and capital expenditure information for
its fiscal year 2012.Denbury has prepared the summary preliminary data in
this release based on the most current information available to
management.Denbury's normal closing and financial reporting processes with
respect to the preliminary data herein have not been fully completed and, as a
result, its actual results could be different from this summary preliminary
information presented herein, and any such differences could be material.

This press release, contains forward-looking statements that involve risks and
uncertainties, including estimated production along with quantities and PV-10
Value of proved oil and natural gas reserves of pending acquisitions,
estimated quantities and PV-10 Value of proved oil and gas reserves and
quantities of CO[2] reserves, preliminary estimates of fourth quarter 2012
production, full-year 2012 production, and 2012 capital expenditures, CO[2]
EOR reserve potential, 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.

         Phil Rykhoek, President and CEO, 972.673.2000
         Mark Allen, Senior Vice President and CFO, 972.673.2000
         Jack Collins, Executive Director, Investor Relations,

Denbury Resources Inc. Logo
Press spacebar to pause and continue. Press esc to stop.