Denbury Resources Announces Successful Exploration Well; Management Increases 4th Quarter 2000 Production Forecast 6%.

Business/Energy Editors

DALLAS--(BUSINESS WIRE)--Sept. 6, 2000

Denbury Resources Inc. (NYSE:DNR) (TSE:DNR) ("Denbury" or the "Company") today announced that it is performing completion operations on the Fina Fee No. 1 exploratory well, located in the Lirette Field, Terrebonne Parish, Louisiana. Denbury operates the discovery with a 67% working interest and a 50% net revenue interest. Production is expected to commence in the next 30 days.

Analysis of electric logs and core samples indicate approximately 100 net feet of pay in the Tex W sands at approximately 17,000 feet. This well is expected to add approximately 11 billion cubic feet ("Bcf") of additional net proved natural gas reserves and 200,000 barrels ("Bbls") of additional net proved oil reserves, based on preliminary estimates by the Company. The Company anticipates that this well will produce at a rate of 10 to 15 million cubic feet of natural gas per day ("MMcf/d") (5 to 7.5 MMcf/d net to the Company) based on rates from similar recently completed wells in the same field.

Denbury also announced today that new production is expected to commence from four non-operated Gulf of Mexico wells in two fields before year-end. The aggregate production from these four wells is expected to provide additional natural gas production of approximately 8 to 12 Mmcf/d, net to the Company. Denbury's offshore drilling program is continuing with plans to drill an additional four or five offshore natural gas wells before year-end.

Gareth Roberts, Chief Executive Officer of Denbury, said, "The results of these recent wells makes it possible to increase our targeted fourth quarter daily production rate to 22,000 barrels of oil equivalent per day ("BOE/d") (comprised of an estimate of 15,750 barrels of oil per day ("Bbls/d") and 37.5 MMcf/d), a 6% increase from our previously estimated target of 20,800 BOE/d. These recent successes in drilling for natural gas not only add reserves and production, but also increase the percentage of our production relating to natural gas from 25% during the first half of the year to over 30% by year-end. The total net proved reserves estimated to be added in 2000 now exceed 22 MMBOE's, an increase of 37% from year-end 1999's proved reserves of 60.2 MMBOE, giving a finding cost to date for 2000 of less than $2.00 per Bbl."

Denbury Resources Inc. (www.denbury.com) is an independent oil and gas company with its primary operations in the states of Mississippi and Louisiana.

This press release, other than historical financial information, contains forward looking statements that involve risks and uncertainties including expected drilling activity, production, reserve additions, 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 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.