Denbury Resources Provides Operational Update Acquires Additional Hedges.Business Editors DALLAS--(BUSINESS WIRE)--Oct. 3, 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 reported that the increase in third quarter production related to the properties acquired from COHO, which closed in late August, was approximately equally offset by shut-ins and delays in its operations as a result of 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 in late September. The Company's preliminary estimate of third quarter 2002 production volumes is between 35,000 and 35,500 BOE/d, within the range of its production guidance prior to the COHO acquisition. The Company has shut-in shut-in n. A person confined indoors by illness or disability. adj. 1. Confined to a home or hospital, as by illness. 2. Disposed to avoid social contact; excessively withdrawn or introverted. most of its 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 and 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. production again due to deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: weather conditions from 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. . Total production volumes affected by the closure are in excess of 90 million cubic feet of natural gas equivalent per day, predominately natural gas. It is anticipated that the onshore production will be shut-in for only one to two days, while the offshore production will remain shut-in for up to a week, assuming that there is no significant damage as a result of the hurricane. All Denbury personnel and associated contract personnel have been evacuated e·vac·u·ate v. e·vac·u·at·ed, e·vac·u·at·ing, e·vac·u·ates v.tr. 1. a. To empty or remove the contents of. b. To create a vacuum in. 2. . Additional Hedging Separately, the Company announced that as part of its regular hedging program it has recently obtained additional swaps (forward sales forward sales npl → ventas fpl a término ) and no-cost collars from five different institutions for its 2003 and 2004 production. For 2003, the Company swapped 2,000 Bbls/d at $25.70 and swapped 10 MMcf/d at $3.90 per MMBtu. For 2004, the Company swapped 5,000 Bbls/d at an average price of $23.04 and obtained a no-cost natural gas collar for 30 MMcf/d with a price floor of $3.50 per MMBtu and a ceiling price of $4.45 per MMBtu. Although the Company has not completed its production forecast for 2003 or 2004, it expects that these hedges, combined with its prior hedges, will cover between 70% and 80% of its anticipated 2003 oil and natural gas production, between 40% and 50% of its anticipated 2004 oil production and between 20% and 30% of its anticipated 2004 natural gas production. A summary of the Company's hedges as of September 30, 2002 are listed below:
Crude Oil Contracts:
Average NYMEX Contract Prices Per Bbl
----------------------------------------
Collar Prices
--------------
Type of Contract
and Period Bbls/d Swap Price Floor Price Floor Ceiling
-------------------- ------ ---------- ----------- ------- -------
Floor Contracts
Balance of 2002 10,000 $ -- $21.00 $ -- $--
--------------- ------ ------ ------- ----- -----
Swap Contracts
Balance of 2002 2,750 25.50 -- -- --
2003 4,500 24.25 -- -- --
2003 2,000 25.70 -- -- --
2004 4,500 22.94 -- -- --
2004 5,000 23.04 -- -- --
Collar Contracts
Balance of 2002 1,250 -- -- 22.60 27.63
2003 10,000 -- -- 20.00 30.00
Natural Gas Contracts:
Average NYMEX Contract Prices Per MMBtu
----------------------------------------
Collar Prices
---------------
Type of Contract
and Period MMcf/d Swap Price Floor Price Floor Ceiling
------------------- ------ ---------- ---------- ------ ------
Floor Contracts
Balance of 2002 2.1 $ -- $3.38 $ -- $ --
Collar Contracts
Balance of 2002 90.0 -- -- 2.50 4.15
2003 70.0 -- -- 2.75 4.02
2004 30.0 -- -- 3.50 4.45
Swap Contracts
2003 10.0 3.90 -- -- --
Denbury Resources Inc. is a growing independent oil and natural gas company engaged in acquisition, development and exploration activities in the U.S. Gulf Coast region. The Company holds significant reserves and production in 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 , where it is the largest producer of oil and natural gas, onshore in 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 contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , consisting of opinions, forecasts, projections, guidance and other statements, other than historical financial information, regarding budgeted capital expenditures, expected production and financial results, among others. These statements are based on assumptions that are subject to change and to risks and uncertainties, especially volatility in oil and gas prices, geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. risks, drilling results and production costs, and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including the Company's reports on Forms 10-K and 10-Q. Although management believes the expectations reflected in such forward-looking statements are reasonable based on currently available information, 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. Estimates of future financial or operating performance provided by the Company are based on existing market conditions and engineering and geologic ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. information available at this time. Actual financial and operating performance may vary from these estimates. Future performance is dependent upon oil and gas prices, exploratory and development drilling results, engineering and geologic information and risks and changes in market conditions. |
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