Denbury Resources Completes Acquisition of Producing and Tertiary Oil Properties.

DALLAS -- Denbury Resources Inc. (NYSE:DNR) ("Denbury" or the "Company") today announced the completion of its previously announced acquisition of three oil fields that are potential carbon dioxide tertiary oil flood candidates: Tinsley Field approximately 40 miles northwest of Jackson, Mississippi; Citronelle Field in Southwest Alabama, and the smaller South Cypress Creek Field near the Company's Eucutta Field in Eastern Mississippi. The adjusted purchase price is approximately $248 million, after adjusting for interim net cash flow and minor purchase price adjustments. The acquisition was funded with the $150 million of senior subordinated notes issued in December 2005 and bank financing under the Company's existing credit facility, bringing the currently outstanding balance of the Company's bank debt to approximately $100 million.

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, owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River, and holds key operating acreage in the onshore Louisiana and Texas Barnett Shale areas. The Company increases the value of acquired properties in its core areas through a combination of exploitation drilling and proven engineering extraction practices.