Denbury Resources Inc. Announces New CO2 Pipeline; Updates Tertiary Recovery Operations and Projections; Announces Presentation at Lehman Conference.DALLAS -- Denbury Resources Inc. (NYSE NYSE See: New York Stock Exchange :DNR See dynamic noise reduction and domain name resolver. ), announced that it has commenced the acquisition of leases and right-of-way for the construction of an 84 mile pipeline to transport carbon dioxide carbon dioxide, chemical compound, CO2, a colorless, odorless, tasteless gas that is about one and one-half times as dense as air under ordinary conditions of temperature and pressure. ("CO2") from the Company's CO2 source fields located near Jackson, Miss. to planned tertiary recovery operations Operations conducted to search for, locate, identify, rescue, and return personnel, sensitive equipment, or items critical to national security. in East Mississippi, initially terminating at Eucutta Field. Denbury is still reviewing financing options for the pipeline, expected to cost between $40 and $50 million, and anticipates the pipeline will be ready for use during the first half of 2006. The Company also announced the completion of its fourth CO2 well drilled during 2004, confirming the addition of an estimated 300 Bcf of CO2 reserves, resulting in an estimated total increase in CO2 reserves during 2004 of approximately 1.0 Tcf. This increase in CO2 reserves is sufficient to satisfy the projected CO2 requirements of Denbury's initial plans for tertiary recovery operations in Eastern Mississippi (phase II of Denbury's tertiary recovery operations). Phase II will initially consist of tertiary recovery operations at six oil fields This list of oil fields includes major fields of the past and present. The list is incomplete; there are more than 40,000 oil and gas fields of all sizes in the world[1]. in that region, but it is ultimately expected to expand to several other oil fields in the area, which would also be serviced by the new pipeline. In conjunction with these plans, the Company has updated its development schedule and targeted oil production from tertiary recovery operations, reflecting Denbury's acceleration of both phase I and II of its tertiary operations as a result of the availability of additional capital generated by the sale of its offshore properties in July. The revised model projects a 28% compounded increase in oil production solely from tertiary recovery operations between 2003 and 2010, increasing from 4,670 BOE/d in 2003 to a projected 33,500 BOE/d in 2011. The model assumes that the first production from tertiary recovery operations in Eastern Mississippi will occur in 2007. Oil production from tertiary recovery operations for 2004 is expected to average just under 7,000 BOE/d, up from an average of 6,603 BOE/d during the second quarter of 2004. The Company has posted a new slide presentation that includes this new tertiary recovery operations business model on its web site. Denbury also announced that Gareth Roberts Gareth Roberts may refer to:
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of on September 9 at 10:25 A.M. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The Lehman conference presentation will be webcast and available through Denbury's website, www.denbury.com, and archived for approximately 30 days thereafter. 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 carbon dioxide used for tertiary oil recovery east of the Mississippi River Mississippi River River, central U.S. It rises at Lake Itasca in Minnesota and flows south, meeting its major tributaries, the Missouri and the Ohio rivers, about halfway along its journey to the Gulf of Mexico. , and holds significant operating acreage in onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. Louisiana. The Company increases the value of acquired properties in its core areas through a combination of exploitation drilling and proven engineering extraction practices, including secondary and tertiary recovery operations. 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, proved and potential reserves, production levels (including long-term projections of targeted tertiary operations production levels in future periods), 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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, field operational performance, 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. |
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