Denbury Announces $13.25 Million Property Acquisition.

DALLAS--(BUSINESS WIRE)--Aug. 16, 1999--

Denbury Resources Inc. (NYSE:DNR)(TSE:DNR.) announced today that it has entered into a purchase and sale agreement to purchase producing oil properties in Southwestern Mississippi for $13.25 million.

This tertiary carbon dioxide flood currently has approximately 37 operated producing wells, 24 operated injector wells and 43 inactive wells. The Company will acquire an average working interest of 99% and an average net revenue interest of 82.5% in this field. Closing is scheduled for early September and is subject to normal closing conditions for acquisitions of this type.

The field produces light sweet oil with average daily production during the first week of August of 1999 of approximately 1,500 Bbls/d, net to the acquired interest. This acquisition is expected to add net proved reserves of approximately 6.0 million barrels of oil as of July 1, 1999, to the Company based on preliminary estimates by Netherland, Sewell and Associates, Inc., the Company's independent petroleum engineers. Netherland, Sewell and Associates, Inc. also forecasted approximately $9.9 million of future development cost to recover these reserves.

Denbury is an independent oil and gas company with its primary operations in the states of Mississippi and Louisiana.

This press release contains forward-looking statements that involve risks and uncertainties including expected reserves and production volumes and budgeted capital expenditures and other risks and uncertainties detailed in the Company's SEC reports. Actual results may vary materially. The Toronto Stock Exchange and the SEC have neither approved nor disapproved the information contained herein.