Denbury's Q1 Production Stays Same as Q4 2007 Production
Denbury Resources reported that production for the quarter was 44,900 BOE/d, approximately the same as fourth quarter of 2007 production after adjusting for production from our Louisiana natural gas properties, 70% of which were sold in December 2007 and 30% in February 2008, and a 17% increase over the first quarter of 2007 average of 38,305 BOE/d (a 33% increase after adjusting for the Louisiana sale).
The sold Louisiana properties produced 5,097 BOE/d in the fourth quarter of 2007 and only 302 BOE/d was recorded in the first quarter of 2008 representing the production prior to closing for the remaining portion of that sale in February. Oil production from the Company's tertiary operations averaged 17,156 BOE/d, an increase of 46% over 2007's first quarter tertiary production level, and about the same as fourth quarter 2007 tertiary production levels of 17,428 BOE/d. The Company's tertiary production was about the same as the fourth quarter levels as a result of various operational issues and delays, coupled with normal and expected fluctuations in the forecasted production growth curve.
Average production from the Barnett Shale increased 84% to 12,801 BOE/d in the first quarter of 2008 as compared to average production of 6,971 BOE/d for the first quarter of 2007. The Barnett production was about the same as fourth quarter 2007 production of 12,729 BOE/d, as expected, as the Barnett production is not expected to fluctuate significantly during 2008 based on the Company's plans to drill between 45 and 50 wells this year. The balance of the Company's other production declined slightly from fourth quarter 2007 levels, as expected.
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- Denbury Finalizes Second Phase of Bakken Exchange (Dec 24)