Market Overview

Denbury Says Selling Some Bakken Assets, Exchanging Others

Related USO
How ETNs Differ From ETFs
ETF Outlook For The Week Of March 31, 2014 (QQQ, XLE, EEM, TOLZ, XOM)

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[2]") flooding and close to Denbury's existing or planned CO[2] pipelines. In addition, Denbury has agreed in principle to either purchase an interest in the CO[2] reserves in ExxonMobil's LaBarge Field in southwestern Wyoming or purchase incremental CO[2] from that field, on terms and conditions to be mutually agreed upon by the parties. The purchase of an interest in CO[2] reserves would reduce the amount of cash received by Denbury. 

Posted-In: News Commodities Asset Sales Markets


Most Popular

Related Articles (USO + DNR)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free