Denbury Resources Announces 24% Increase in Production Expected for 2001.

Business/Energy Editors

DALLAS--(BUSINESS WIRE)--Oct. 10, 2000

Sets 2001 Capital Expenditure Budget; Ms. Carrie Wheeler of

Texas Pacific Group Joins Board of Directors

Denbury Resources Inc. (NYSE:DNR) (TSE:DNR) ("Denbury" or the "Company") today announced its projected 2001 capital expenditure ("CAPEX") budget and estimated 2001 daily production volumes.

Capital Expenditure Program

The Company's CAPEX budget for 2001 approximates $100 million. The CAPEX budget is geared to further increase the Company's production from its existing fields and to expand its activity in the offshore Gulf of Mexico. An estimated 25% of the budget has been allocated to Heidelberg Field, 15% to Little Creek Field, 15% to offshore fields, 18% to seismic, acreage, corporate overhead and other discretionary items and the balance to be applied to additional existing fields.

Increase in Daily Production Volumes

Using the Company's normal methodology for forecasting production and based on the 2001 CAPEX budget, the Company's targeted production for next year is a Company record 25,000 BOE per day, comprised of an estimated 17,000 barrels of oil per day and 48 million cubic feet of natural gas per day. This represents a 24% increase from its anticipated average daily production for 2000.

Mr. Gareth Roberts, Chief Executive Officer of Denbury, said, "We will exit 2000 with a significant increase in our reserve and production base. If we achieve our targets for 2001, it will be the second straight year of 20% to 25% growth in base production at an expected cost of less than $25,000 per daily producing BOE. Through our successful exploitation drilling efforts around and in the Gulf of Mexico, we've calculated that our percentage of natural gas production should increase to about 35% of our total production by year-end 2001. Based on our current capital structure and assuming current commodity prices and these anticipated production levels, we fully expect to generate our best ever cash flow per share in 2001".

The Company also announced that it has elected Ms. Carrie Wheeler, of San Francisco, California, to the Board of Directors to fill a vacancy created by the resignation of Mr. David Stanton on October 4, 2000. Ms. Wheeler has been a principal with the Texas Pacific Group since 1996 and prior to joining the Texas Pacific Group was with Goldman, Sachs & Co. Ms. Wheeler also serves on the board of a private technology company.

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 and holds key operating acreage in the onshore Louisiana and 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 and uncertainties including expected drilling activity and results, production levels, commodity prices, financial results and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including the reports on Form 10-Q. These reports are incorporated by this reference as though fully set forth herein. These statements are based on assumptions concerning commodity prices, scheduling, drilling and completion results 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.