Denbury closed the previously announced $900 million sale of oil and natural gas assets (primarily located in the Permian Basin, the Mid-continent area, and the East Texas Basin) to Quantum Resources Management on May 14, 2010. To date, the Company has received net proceeds of approximately $889 million (including a prior $45 million deposit) and anticipates receiving an additional $5.5 million within the next few weeks relating to exercised preferential rights. The net proceeds of the sale will be used to repay approximately $830 million of the $869 million in bank debt currently outstanding on the Company’s $1.6 billion revolving credit facility.
The Company also announced today that in conjunction with the sale of these properties, its banks performed a re-determination of the Company’s borrowing base under its $1.6 billion revolving credit facility and left the borrowing base in that amount unchanged.
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