Denbury Resources Adds Oil Hedges On COHO Properties.Business Editors Denbury Resources Inc. (NYSE NYSE See: New York Stock Exchange :DNR See dynamic noise reduction and domain name resolver. ), today announced that it has acquired oil hedges for 2003 and 2004 covering 4,500 barrels of oil per day ("Bbls/d"). These volumes are approximately equal to the net forecasted oil production, for those periods, of the COHO Energy Inc. ("COHO") properties on which Denbury was named the high bidder yesterday, based on the Company's internal proved developed reserve estimates. Closing on this acquisition is scheduled for August, subject to the completion of title review, field and environmental inspections, completion of an asset purchase agreement and final authorization The right or permission to use a system resource; the process of granting access. See access control. and approval by the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. . The oil hedges are no-cost swaps with an average fixed price of $24.27 per barrel during calendar 2003 and an average fixed price of $22.93 per barrel during calendar 2004. The Company also supplemented the COHO 2002 oil hedges that the Company expects to receive as part of the COHO asset purchase, by acquiring an oil swap for the fourth quarter of 2002 covering 2,750 Bbls/d at a fixed price of $25.50 per barrel. The existing COHO hedges that are expected to be included in the acquisition cover 3,750 Bbls/d for the third quarter of 2002 and 1,250 Bbls/d for the fourth quarter of 2002. The COHO third quarter hedges have an average floor price of $22.80 and an average ceiling price of $27.38 per barrel while the fourth quarter hedges have an average floor price of $22.60 and an average ceiling price of $27.63 per barrel. 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 Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by , holds key operating acreage onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. and has a growing presence in the offshore Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of MexicoGolfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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. |
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