Denbury Resources Announces Plans for Proposed COHO Acquisition.

Business Editors

DALLAS--(BUSINESS WIRE)--Aug. 21, 2002

Denbury Resources Inc. (NYSE:DNR), in conjunction with Denbury President and CEO Gareth Roberts' presentation today at a New York luncheon sponsored by the Company, discussed its long-term plans for development of the previously announced pending purchase of the Coho Energy Inc. ("COHO") Gulf Coast properties for $50.3 million. Consummation of the purchase through the U.S. Bankruptcy Court is currently scheduled for August 29th, subject to the resolution of title and environmental issues and other normal closing adjustments.

As previously announced, Denbury estimates that the proven reserves for this acquisition will be approximately 14.4 million barrels of oil. Included in the acquisition is Brookhaven Field, a possible tertiary carbon dioxide ("CO2") injection candidate located close to the Company's 183-mile CO2 pipeline. Initial tertiary recovery development may not be undertaken at this field for two to three years, as the field is currently producing approximately 750 barrels of oil per day and is still undergoing waterflood operations. Once tertiary operations commence, the Company anticipates spending $6 to $10 million per year for the first several years, with a total of approximately $75 to $85 million projected to be invested there over the field's predicted life. Currently, Denbury estimates the total proved reserves of the Brookhaven Field to be 2.9 million barrels of oil. The Company also has preliminary estimates that indicate around 20 million net barrels of additional oil may be recoverable from Brookhaven Field using CO2 injection, based on its success at Little Creek and Mallalieu Fields. Since a pilot project has not been performed to date at this field, the Company is not expected to immediately classify or record any of this additional potential as proved reserves. The Company expects to convert this potential to proved reserves as tertiary development of this field occurs, with the initial proved reserves expected to be recognized in two to three years.

The acquisition of Brookhaven field is part of Denbury's strategy to expand its CO2 recovery operations throughout the Lower Tuscaloosa oil fields of Southwest Mississippi. Denbury is strategically positioned to develop the potential tertiary reserves in these fields because of its ownership of CO2 reserves and associated pipeline. Denbury operates the only active CO2 tertiary recovery operations in the basin at Little Creek, Lazy Creek and Mallalieu Fields and has expertise in installing and managing such an operation. Including some fields which Denbury does not currently own and the potential at Brookhaven Field, the Company estimates that approximately 60-75 million barrels of additional net oil reserves (over and above the 19.7 million barrels of proved reserves currently booked at Little Creek and Mallalieu Fields), may be available to Denbury in the vicinity of its pipeline through tertiary recovery operations. With the addition of Brookhaven field, McComb field (another previously announced acquisition expected to close during August) and other smaller fields where leasing is still in progress (all of which are over 65% leased), the Company estimates that it would then control 75% to 85% of the aforementioned future potential in this area.

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.