Denbury Resources Offers Proved Reserves, Production Results

Denbury Resources Inc.(NYSE: DNR) ("Denbury" or the "Company") today announced that its totalestimated proved oil and natural gas reserves at December 31, 2012 were 409million barrels of oil equivalent ("MMBOE"), consisting of 329 million barrelsof crude oil, condensate and natural gas liquids, and 482 billion cubic feet(80 MMBOE) of natural gas. Reserves were 80% liquids and 60% proved developed,and 49% of such reserves were attributable to Denbury's carbon dioxideenhanced oil recovery ("CO[2] EOR" or "tertiary") operations. Nearly all ofDenbury's reserves not attributable to CO[2] EOR operations at year-end 2012relate to planned future CO[2] EOR operations. Also, year-end 2012 provedreserve estimates do not include the estimated 42 MMBOE of proved reservesassociated with Denbury's pending acquisition of property interests in theCedar Creek Anticline of Montana and North Dakota from ConocoPhillips in atransaction expected to close near the end of the first quarter of 2013 (the"CCA Acquisition").    Denbury's aggregate proved reserve additions during 2012 were 114 MMBOE,primarily consisting of 57 MMBOE from CO[2] EOR operations at Hastings andOyster Bayou fields, 26 MMBOE from the acquisition of interests in theThompson, Webster, and Hartzog Draw fields that Denbury plans to flood withCO[2] in the future, and additions of 11 MMBOE in the Bakken area prior to itssale in the fourth quarter of 2012. These 2012 additions were offset by 26MMBOE of production, the sale during the year of properties with combinedproved reserves of 124 MMBOE, and minor revisions, including those related tolower natural gas prices. Total tertiary oil reserves at December 31, 2012were 201 MMBOE, up 36% from the prior year-end level of 148 MMBOE, primarilyas a result of initial bookings at Hastings and Oyster Bayou fields.      The estimated discounted net present value of Denbury's proved reserves atDecember 31, 2012, before projected income taxes, using a 10% per annumdiscount rate ("PV-10 Value", a non-GAAP measure), was $9.9 billion, usingfirst-day-of-the-month 12-month average 2012 prices of $94.71 per barrel("Bbl") for oil and $2.85 per million British thermal unit ("MMBtu") fornatural gas. This represents a $0.7 billion decline from the prior year levelas the strategic sale of properties with a PV-10 Value of $1.9 billion atyear-end 2011 (using first-day-of-the-month 12-month average 2011 prices of$96.19 per Bbl for oil and $4.16 per MMBtu for natural gas) and the impact oflower oil and natural gas prices more than offset increases from additionaltertiary reserves and acquired properties. The year-end 2012 PV-10 Value ofproved reserves attributable to Denbury's tertiary oil activities was $6.8billion, a $1.1 billion, or 19%, increase from the prior year level.  Also,year-end 2012 PV-10 Values do not include any PV-10 Value of the pending CCAAcquisition, which is currently estimated at $1.1 billion using the samecommodity price assumptions as those in Denbury's year-end 2012 report. On apro forma basis, it is currently estimated that the CCA Acquisition wouldincrease the Company's PV-10 Value to approximately $11 billion. Following isa preliminary reconciliation of the change in the Company's proved oil andnatural gas reserve quantities between December 31, 2011 and December 31,2012, along with the pro forma impact of the pending CCA Acquisition:  MMBOEBalance at December 31, 2011 462Extensions & discoveries and improved recoveries 86Acquisitions  28Sales (124)Estimated revisions due to price changes (7)Other estimated revisions (10)Estimated 2012 production (26)Balance at December 31, 2012  409Estimated reserves from pending CCA Acquisition  42Estimated pro forma reserves 451Denbury's estimated proved CO[2] reserves at year end 2012, increased 8% to9.6 trillion cubic feet ("Tcf"). CO[2] reserves are presented on a grossworking interest or 8/8^ths basis, except those reserves recently acquiredfrom ExxonMobil which are reported net to Denbury's interest. Of these totalCO[2] reserves, 6.1 Tcf were in the Gulf Coast region and 3.5 Tcf were in theRocky Mountain region. Denbury's acquisition of approximately one-third ofExxonMobil's CO[2] reserves in LaBarge Field in Wyoming added approximately1.3 Tcf to its Rocky Mountain region CO[2] reserves.Preliminary 2012 and Fourth Quarter ProductionBased on preliminary data, Denbury's average annual production rate for 2012was 71,689 barrels of oil equivalent per day ("BOE/d") which included 35,206barrels per day ("Bbls/d") from tertiary properties and 14,847 BOE/d fromproperties sold in 2012. Preliminary estimated total fourth quarter 2012production was 70,116 BOE/d which included 37,550 Bbls/d from tertiaryproperties and 10,064 BOE/d from the Bakken area assets the Company soldduring such quarter.  Quarterly total continuing production, which excludesproduction from the Bakken area assets sold during the fourth quarter of 2012,was 60,052 BOE/d, up 7% from the prior quarter continuing production levels,driven by an 8% sequential increase in tertiary production and a 6% sequentialincrease in non-tertiary production. Fourth quarter of 2012 tertiaryproduction was 21% higher than the year ago quarter primarily due to strongcontributions from the Company's newest CO[2] floods at Hastings and OysterBayou fields and the expansion of existing CO[2] floods at Delhi and Tinsleyfields.  The sequential increase in non-tertiary production during the fourthquarter of 2012 was primarily the result of properties acquired fromExxonMobil during such quarter, which contributed approximately 1,200 BOE/d toquarterly production. Denbury estimates current average net production fromthe properties to be acquired in the pending CCA Acquisition at approximately11,000 BOE/d, of which 99% is oil and natural gas liquids. Assuming theacquisition closes as currently scheduled near the end of the first quarter of2013, Denbury estimates the properties would contribute approximately 7,700BOE/d to its full-year 2013 average daily production.Preliminary 2012 Capital ExpendituresDenbury estimates that 2012 capital expenditures, excluding expenditures onacquisitions, capitalized interest, and tertiary startup costs, wereapproximately $1.45 billion, which was in-line with the budgeted amount.  Ofthis amount, approximately $1.1 billion was spent on oil and natural gasdevelopment and exploration activities, with the remainder primarily spent onCO[2] sources and infrastructure. Capital expenditures on properties Denburysold in 2012 were approximately $0.4 billion.