PLANO, Texas, June 18, 2018 (GLOBE NEWSWIRE) -- Denbury Resources Inc. (NYSE:DNR) (“Denbury” or the “Company”) today announced that the Company has sanctioned a CO2 enhanced oil recovery (“EOR”) project at Cedar Creek Anticline (“CCA”). CCA is a massive geological feature stretching approximately 125 miles in length across parts of Montana, North Dakota and South Dakota. Denbury’s portion of CCA covers approximately 175,000 acres and is estimated to hold up to five billion barrels of original oil in place.
KEY PROJECT HIGHLIGHTS:
Chris Kendall, Denbury’s President and CEO, commented, “The decision to sanction this significant project marks a major milestone for the Company and highlights our confidence in the significant long-term oil production and cash flow potential of this key asset. Over the last few years, the Denbury team has worked diligently to prepare this project for execution, capitalizing on our vast EOR experience, and I am proud of all the efforts that made the sanctioning of this project possible.
“We expect this project could ultimately produce more than 400 million barrels of oil through CO2 enhanced oil recovery, much greater than Denbury’s entire current proved reserves base and is attractive at $50 oil. I believe CCA will deliver significant value to Denbury and our stakeholders for many years.”
PLANNED DEVELOPMENT SUMMARY
CONFERENCE AND SLIDE PRESENTATION
Chris Kendall, Denbury’s President and CEO, presented at the 2018 J.P. Morgan Energy Conference earlier today, which presentation included information contained in this press release. An updated corporate slide presentation and a link to a replay of the live webcast of today’s presentation is available in the Investor Relations section of the Company’s website at www.denbury.com.
Denbury is an independent oil and natural gas company with operations focused in two key operating areas: the Gulf Coast and Rocky Mountain regions. The Company’s goal is to increase the value of its properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to CO2 enhanced oil recovery operations. For more information about Denbury, please visit www.denbury.com.
This press release, contains forward-looking statements including currently estimated capital costs, estimated production and expected time of first tertiary response, along with potential recoverable reserves of CCA and estimated future cash flows, which are subject to numerous risks and uncertainties involved in large field development, along with other risks and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission (“SEC”), including Denbury’s most recent report on Form 10-K. These risks and uncertainties are incorporated by this reference as though fully set forth herein. These statements are based on engineering, geological, financial and operating 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. In addition, any forward-looking statements represent the Company’s estimates only as of today and should not be relied upon as representing its estimates as of any future date. Denbury assumes no obligation to update its forward-looking statements.
Current SEC rules regarding oil and gas reserves information allow oil and gas companies to disclose in filings with the SEC not only proved reserves, but also probable and possible reserves that meet the SEC’s definitions of such terms. The Company discloses only proved reserves in its filings with the SEC. In this press release, the Company refers to estimates of original oil in place, resource or reserves “potential,” barrels recoverable or other descriptions of volumes potentially recoverable, which in addition to reserves generally classifiable as probable and possible (2P and 3P reserves), include estimates of resources that do not rise to the standards for possible reserves, and which SEC guidelines strictly prohibit the Company from including in filings with the SEC. Portions of these amounts are based upon estimates by the Company’s independent engineers or by Denbury’s internal staff of engineers, and are by their nature more speculative than estimates of proved reserves and are subject to greater uncertainties, and accordingly the likelihood of recovering those reserves is subject to substantially greater risk.
DENBURY CONTACTS: Mark C. Allen, Executive Vice President and Chief Financial Officer, 972.673.2000 John Mayer, Director of Investor Relations, 972.673.2383