Denbury Resources Adds 2003 Oil Hedges; $15 Million Increase to 2002 Budget.

Business Editors

DALLAS--(BUSINESS WIRE)--June 11, 2002

Denbury Resources Inc. (NYSE:DNR), today announced that it has acquired oil hedges for 2003 covering 10,000 Bbls/d, or 40% to 60% of its estimated 2003 oil production, with a floor price of $20.00 and a ceiling price of $30.00 per Bbl, at a total cost of approximately $1.2 million.

In light of the recently higher commodity prices and current 2002 pricing expectations, the Company has increased its 2002 exploration and development ("CAPEX") budget by $15 million, from $100 million (including $5 million carried over from 2001) to $115 million.

2003 Oil Hedges

As part of its regular hedging program, the Company has recently obtained oil collars from three different financial institutions for a portion of its anticipated 2003 oil production. These collars cover 10,000 Bbls/d, with a price floor of $20.00 per Bbl and a ceiling price of $30.00 per Bbl. Although the Company has not finalized its production forecast for 2003, it expects that these hedges will cover between 40% and 60% of its anticipated 2003 oil production.

The Company has previously acquired natural gas hedges for 2003 which cover between 50% and 75% of the Company's anticipated natural gas production, with a floor price $2.75 per MMBtu and an average ceiling price of approximately $4.02 per MMBtu.

Increase in Capital Expenditure Program

In light of recently higher commodity prices and associated higher cash flow currently anticipated in 2002 based upon these prices, the Company's 2002 CAPEX budget was recently increased from approximately $100 million to approximately $115 million. These totals include five million dollars that was expected to be spent in 2001 but was carried over into 2002. The majority of the $15 million increase is targeted for drilling three additional wells, two of which are on the Company's offshore properties, with the balance allocated to several workovers, recompletions, and additional facilities. The increase in spending is not expected to significantly impact the Company's forecasted 2002 production rate as the higher impact projects are not expected to come on production until 2003.

Denbury Resources Inc. (www.denbury.com) is a growing independent oil and gas company. The Company is the largest oil and natural gas operator in Mississippi, holds key operating acreage onshore Louisiana and has a growing presence in the offshore Gulf of Mexico areas. The Company increases the value of acquired properties in its core areas through a combination of exploitation drilling and proven engineering extraction practices.

This press release, other than historical financial information, contains forward looking statements that involve risks such as those involved in drilling activity, reserve forecasts and those caused by price volatility, and uncertainties as to drilling results, reserve quantities, production levels, commodity prices, and financial results as detailed in the Company's filings with the Securities and Exchange Commission, including its reports on Form 10-K and 10-Q. These reports are incorporated by reference as though fully set forth herein. These statements are based on assumptions concerning commodity prices, existing market conditions, scheduling, drilling and completion results and costs and engineering 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.