Anticipated Production in 2004
Based on this capital budget program, the Company anticipates that its production will be between 34,000 and 35,000 BOE/d, approximately the same as 2003's expected average. These 2004 estimates do not include any potential natural gas liquid volumes. The Company's production from its tertiary CO2 projects is expected to increase approximately 50%, from an anticipated 2003 average of approximately 4,700 BOE/d to a projected 2004 average of approximately 7,100 BOE/d.
"We expect to increase net asset value per share during 2003 and anticipate that this budget will give us the best chance to continue this increase in 2004," commented Gareth Roberts, Chief Executive Officer of Denbury. "Even though we are spending more in 2004 on our core CO2 projects, some of which will not have an immediate impact on production, our overall base production (excluding offshore and Thornwell Fields) is continuing to grow. During 2004, one of our goals is to increase our CO2 reserves and production to setup the future expansion of our tertiary recovery operations to Eastern Mississippi. Our capital spending should be at or near our total cash flow, keeping our leverage relatively consistent, assuming no significant acquisitions or divestitures. Our future continues to look bright."
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