Denbury Resources Announces 2003 Hedge Positions.Business Editors DALLAS--(BUSINESS WIRE)--March 7, 2002 Denbury Resources Inc. (NYSE NYSE See: New York Stock Exchange :DNR See dynamic noise reduction and domain name resolver. ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DNR), in conjunction with Denbury President Mr. Gareth Roberts' presentation today at the Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. 2002 High Yield Bond and Leveraged Loan Conference, announced that as part of its regular hedging program it has recently obtained no-cost natural gas collars from three different financial institutions for its 2003 production. These collars cover 70 MMcf/d, with a price floor of $2.75 per MMBtu and a weighted average ceiling price of $4.025 per MMBtu. Although the Company has not completed its forecast for 2003, it expects that these hedges will cover between 50% and 75% of its anticipated 2003 natural gas production. The Company has previously acquired hedges for 2002 which cover approximately 58% of the Company's anticipated oil production and approximately 87% of the Company's anticipated natural gas production as further listed below.
Hedges as of March 7, 2002:
Volume Floor Volume Floor Ceiling
Period Per Day Price Period Per Day Price Price
Oil Price Floors (Bbls/d): Gas Price Collars (MMBtu/d):
2002 20,000 $2.50 $4.10
2002 10,000 $21.00 2002 20,000 $2.50 $4.10
2002 25,000 $2.50 $4.20
Gas Price Floors (MMBtu/d): 2002 25,000 $2.50 $4.17
Q1 -2002 5,269 $3.65
Q2 -2002 3,775 $3.40 2003 45,000 $2.75 $4.00
Q3 -2002 2,873 $3.38 2003 25,000 $2.75 $4.07
Q4 -2002 2,135 $3.38
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 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 Mexico Golfo 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks such as those involved in drilling activity and those due to price volatility, and uncertainties as to drilling results, 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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