Denbury Finalizes Sale of Utah Assets
by Denbury Resources Inc.
|Wednesday, April 11, 2012
Denbury Resources Inc. has entered into a definitive agreement and completed the sale of certain non-operated assets in the Greater Aneth Field in the Paradox Basin of Utah for $75 million to Resolute Energy Corporation and the Navajo Nation Oil and Gas Company. Denbury's proved reserves related to the assets sold were approximately 6.4 million barrels of oil equivalent (boe) as of December 31, 2011 and were 98 percent oil and 58 percent proved developed producing. The Company's previously issued 2012 production guidance assumed daily production from the assets of approximately 650 boepd. Denbury also announced that at the end of February, it had completed the previously announced sale of certain non-core assets for $155 million. Taking into account their respective closing dates, the asset sales will reduce Denbury's 2012 production guidance by approximately 1,625 boepd.
Phil Rykhoek, Denbury's President and CEO, said, "This sale completes our planned 2012 non-core asset divestitures. Altogether, we sold assets for approximately $313.5 million, before taxes and closing adjustments, consisting of the sale of Vanguard Natural Resources units in January for $83.5 million, the sale of Gulf Coast assets at the end of February for $155 million, and now the sale of Paradox Basin assets for $75 million. Total proceeds from the sales exceeded the upper end of our budgeted range of $150 million to $300 million."
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