Denbury Resources Closes Farm-Down of 50% of Its Working Interest in Four Texas Conventional Oil Fields
March 05 2020 - 6:30AM
Denbury Resources Inc. (NYSE: DNR) (“Denbury” or the “Company”)
today announced that it has closed the previously-announced
farm-down transaction with a subsidiary of Navitas Petroleum (TASE:
NVPT.L, “Navitas”) for the sale of half of its nearly 100% working
interest position in four southeast Texas oil fields (consisting of
Webster, Thompson, Manvel and East Hastings) for $50 million cash
and a carried interest in ten wells to be drilled by Navitas.
Estimated net cash to Denbury from the sale is approximately $40
million after adjusting for interim cash flow from the properties
between the January 1, 2019 effective date and the closing
date. Production associated with the working interests sold
averaged 1,170 barrels of oil equivalent per day for the fourth
quarter of 2019, and proved reserves associated with the working
interests sold were approximately 4.1 million barrels of oil as of
December 31, 2019.
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 carbon dioxide
enhanced oil recovery (CO2 EOR) operations. For more
information about Denbury, please visit www.denbury.com.
DENBURY CONTACTS:
Mark C. Allen, Executive Vice President and Chief Financial Officer, 972.673.2000
John Mayer, Director of Investor Relations, 972.673.2383
Denbury Resources (NYSE:DNR)
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