Denbury Resources Inc. Announces Offering of Senior Subordinated Notes.

DALLAS -- Denbury Resources Inc. (NYSE:DNR) ("Denbury" or the "Company") announced today that it has filed a registration statement with the Securities and Exchange Commission ("SEC") relating to the public offering of $150 million of Senior Subordinated Notes Due 2015. Denbury expects to complete the offering before year-end.

Denbury plans to use the estimated net proceeds from the offering to fund a portion of the pending $250 million oil and natural gas property acquisition expected to close in late January 2006. Pending such use, a portion of the funds will be used to repay the current borrowings under the Company's bank credit facility, which were approximately $35 million as of December 1, 2005, with the balance temporarily invested in short-term investments. The offering of the notes is not conditioned on the completion of the acquisition, which is subject to certain customary closing conditions. In the event the acquisition is not completed, the net proceeds will be used for general corporate purposes.

J.P. Morgan Securities Inc. is acting as sole underwriter for the notes offering. A copy of the prospectus for the offering may be obtained on the SEC website at www.sec.gov. Alternatively, the underwriter will arrange to send you the prospectus if you request it by contacting J.P. Morgan Securities Inc. at 270 Park Avenue, 8th Floor, New York, New York 10017, attention Syndicate Desk.

Denbury 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.