Denbury Resources to Consider Sale of Offshore Operations

Denbury Resources has retained Credit Suisse First Boston to assist with the strategic sale of its offshore operations to better focus on its core operations, particularly its tertiary recovery properties.

Denbury owns interests in 81 offshore wells, which had average daily production during 2003 of 47.7 million cubic feet of natural gas equivalent per day ("MMcfe/d"), although with its recent well completions offshore, production for January and February averaged just over 50 MMcfe/d.

No buyer has been identified as yet, and if the sales price is less than anticipated, the Company may withdraw the sales package. The Company has targeted the end of June 2004 for completing the disposition. Denbury intends to focus its capital expenditures on its CO2 tertiary recovery oil projects in Mississippi and other potential areas and will continue to evaluate and consider acquisitions that fit within this strategy.

"Our long-term plan is to concentrate our energy and investment on our tertiary operations where we have lower risk, greater predictability, virtually no competition in our areas of operation and higher profitability," Gareth Roberts, Denbury President and CEO said.

Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours