Denbury Resources Files $200 Million Shelf Registration Statement Operational Update by CEO.

Business Editors

DALLAS--(BUSINESS WIRE)--March 23, 2001

Denbury Resources Inc. (NYSE:DNR)(TSE:DNR.) today announced that late yesterday it filed a universal shelf registration statement with the SEC to give it and its selling shareholders, if they so choose, the flexibility to offer securities when and if market conditions improve.

In the future, Denbury or selling shareholders may sell up to $200 million of securities under the registration statement, which may be common stock, debt securities, preferred stock, depositary shares or warrants, or any combination of such securities. Following effectiveness of the registration statement, Denbury or its selling shareholders may periodically, over a two year period, offer one or more of these securities in amounts, prices, and on terms to be announced when, and if, the securities are offered. The use of the proceeds will be set forth in a prospectus supplement at the time of any such offering.

Mr. Gareth Roberts, President and CEO, reported, "Operationally, we are on track to meet our previously announced production targets which should provide a good year with strong cash flows. We recently had three offshore wells at High Island 521 and one offshore well at High Island 286 commence production, as expected, and our other operations are also performing as we had planned. Accordingly, although the market is currently experiencing turbulence, we want to be prepared for improved market conditions and potential opportunities from time to time by having a shelf on file."

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.

The securities registered under the shelf registration statement may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective and a prospectus supplement setting forth the specific terms of the applicable offering is available. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state.

This press release, other than historical financial information, contains forward-looking statements 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 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.