Denbury Resources Provides Guidance for 2003; Adds Additional 2004 Natural Gas Hedges.Business Editors DALLAS--(BUSINESS WIRE)--Dec. 11, 2002 Denbury Resources Inc. (NYSE NYSE See: New York Stock Exchange :DNR See dynamic noise reduction and domain name resolver. ) ("Denbury" or the "Company") today announced certain operational and financial guidance for 2003, including an update on hedging activities. Capital Expenditure Program The Company has approved its 2003 development and exploration expenditures budget set at an estimated $130 million, excluding any potential acquisitions. Approximately one-third of the budget will be spent on projects relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's tertiary tertiary (tûr`shēârē), in the Roman Catholic Church, member of a third order. The third orders are chiefly supplements of the friars—Franciscans (the most numerous), Dominicans, and Carmelites. recovery (CO2) projects in western Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by , which includes additional development of the Little Creek and Mallalieu Mallalieu is a surname, and may refer to:
This page or section lists people with the surname Mallalieu. Fields, in addition to the commencement of a new CO2 flood at McComb Field and the drilling of three additional CO2 producing wells. Approximately 25% of the budget is being allocated to the offshore Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east area where the Company expects to drill 8-10 wells during 2003, split almost equally between development and exploration. The balance of the 2003 budget is almost equally weighted between the remaining two core areas of 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 Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. and eastern Mississippi and funds reserved for discretionary
spending, seismic, acreage and other general corporate costs. Included
in this portion of the budget are approximately 15 wells onshore
Louisiana and 20 wells in eastern Mississippi.
Anticipated Production Growth Based on this capital budget program, the Company anticipates that its production will average around 37,500 BOE/d during 2003, with an estimated 50/50 oil and natural gas production ratio. This represents a production increase of between five and six percent over anticipated 2002 totals, even after adjustment for the estimated 2,200 BOE/d relating to properties that are expected to be sold during the fourth quarter of 2002 or in early 2003. The Company expects fourth quarter of 2002 daily production to average between 35,500 and 36,000 BOE/d, slightly less than originally expected, primarily due to further delays and shut-ins attributable to Tropical Storm tropical storm n. A cyclonic storm having winds ranging from approximately 48 to 121 kilometers (30 to 75 miles) per hour. tropical storm Isidore and Hurricane Lili This article is about the Atlantic hurricane in 2002. For other storms of the same name, see Hurricane Lili (disambiguation) Hurricane Lili was a powerful hurricane during the 2002 Atlantic hurricane season that caused damage across the Caribbean and into Louisiana. in late September and early October. Natural Gas Hedges Separately, the Company announced that as part of its regular hedging program it has recently hedged additional natural gas for 2004 in the form of a no-cost natural gas collar for 30 MMcf/d, consisting of a price floor of $3.00 per MMBtu and an average price ceiling of $5.84 per MMBtu. Although the Company has not completed its production forecast for 2004, it expects that this hedge, combined with its prior hedges, will cover between 50% and 60% of its anticipated 2004 natural gas production. The Company had previously hedged between 40% and 50% of its anticipated 2004 oil production. "We continue to execute on our plan to increase net asset value per share by increasing production, increasing reserves and at the same time reducing debt," commented Gareth Roberts Gareth Roberts may refer to:
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 and holds key operating acreage onshore Louisiana and in the offshore Gulf of Mexico. The Company increases the value of acquired properties in its core areas through a combination of exploitation drilling and proven engineering extraction practices. This press release, other than historical financial information, contains forward looking statements that involve risks and uncertainties, including expected drilling activity and results, production levels, commodity prices, financial results, sales proceeds and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including the reports on Form 10-Q Form 10-Q See 10-Q. . These reports are incorporated by this reference as though fully set forth herein. These statements are based on assumptions concerning pricing, 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. |
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