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Denbury completes second phase of Bakken sale and asset exchange

PLANO, Texas -- Denbury Resources Inc. has announced the closing of the second and final phase of its previously announced Bakken sale and asset exchange with Exxon Mobil Corporation and its wholly-owned subsidiary XTO Energy Inc.

In the first closing, ExxonMobil retained $350 million cash and Denbury retained a 17.5% interest in the Bakken area assets to enable an exchange of the retained Bakken assets for roughly one-third of ExxonMobil' s CO2 reserves in LaBarge Field in Wyoming. In this second phase closing, ExxonMobil exchanged the contemplated interest in the CO2 reserves and residual cash balances, after preliminary closing adjustments, for Denbury' s retained interest in the Bakken area assets.

Denbury has now transferred all of its Bakken area assets to Exxon Mobil for approximately $1.3 billion of cash along with ExxonMobil' s operating interests in Webster Field in Texas and Hartzog Draw Field in Wyoming and a portion of its CO2 reserves in Wyoming.

Based on the current capacity of the LaBarge plant and subject to availability, Denbury expects that it could receive up to approximately 115 MMcfd of CO2 from the plant. Denbury will pay Exxon Mobil a fee to deliver the CO2 which will initially be used to flood its Bell Creek and Grieve fields along with the newly acquired Hartzog Draw Field. This additional Rocky Mountain CO2 supply will allow Denbury to accelerate the planned CO2 flood of Hartzog Draw Field and potentially defer a portion of the planned development of its Riley Ridge CO2 reserves.

12/24/2012

 

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