Denbury Says Selling Some Bakken Assets, Exchanging Others
Denbury Resources Inc. (NYSE: DNR) ("Denbury" or the "Company") announced that it has entered into an agreement to sell its Bakken assets in North Dakota and Montana to Exxon Mobil Corporation and its wholly owned subsidiary XTO Energy Inc. (collectively, "ExxonMobil"). Denbury will receive $1.6 billion in cash, subject to closing adjustments, and ExxonMobil's operating interests in Webster Field in Texas and Hartzog Draw Field in Wyoming, both of which are ideal candidates for carbon dioxide ("CO") flooding and close to Denbury's existing or planned CO pipelines. In addition, Denbury has agreed in principle to either purchase an interest in the CO reserves in ExxonMobil's LaBarge Field in southwestern Wyoming or purchase incremental CO from that field, on terms and conditions to be mutually agreed upon by the parties. The purchase of an interest in CO reserves would reduce the amount of cash received by Denbury.
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