Denbury Resources Inc., Dallas, (NYSE: DNR) plans to acquire oil properties in Mississippi and Alabama for $250 million from an undisclosed seller. The acquisition is expected to close by the end of January 2006. The purchase includes controlling interests in the Tinsley Field near Jackson, Miss.; the Citronelle Field in southwest Alabama; and the South Cypress Creek Field in eastern Mississippi. All three fields are potential carbon dioxide tertiary flood candidates with reserve potential from the CO2 tertiary floods of approximately 60- to 75 million net barrels of oil equivalent. The acquisition also includes an eight-inch pipeline from the company's Jackson Dome area to the Tinsley Field. Based on initial company estimates, these properties have estimated conventional (non-CO2) proved reserves of 14.3 million barrels of oil equivalent. The fields have current production of approximately 2,200 barrels of oil equivalent per day, increasing the company's preliminary 2006 production forecast to 37,000 barrels per day, a 24% increase over 2005's estimated average production. Denbury will operate all three fields and own the majority of the working interest. Standard & Poor's reports its rating on Denbury of BB/Stable/-- will not be affected by this acquisition because it expects the transaction to be financed in a manner that is consistent with the expectations for the current ratings.
Recommended Reading
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
Equinor Says EQT Asset Swap Upgrades International Portfolio
2024-04-30 - Equinor CFO Torgrim Reitan says the company’s recent U.S. asset swap with EQT Corp. was an example of the European company “high-grading” its international E&P portfolio.
Barnett & Beyond: Marathon, Oxy, Peers Testing Deeper Permian Zones
2024-04-29 - Marathon Oil, Occidental, Continental Resources and others are reaching under the Permian’s popular benches for new drilling locations. Analysts think there are areas of the basin where the Permian’s deeper zones can compete for capital.
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.