Company Overview: Denbury Resources
One of the most recent projects that illustrates Denbury’s strategy is the $12 million acquisition of Little Creek Field during September 1999. At the time of acquisition, this field was producing approximately 1,350 BOE/d. In the ten months that the Company has owned the field, production has increased approximately 50% to an average of approximately 2,000 BOE/d during the month of June 2000 and the Company estimates that the proven reserves have increased 50% to approximately 8.4 MMBOE as of June 30, 2000.
The Company’s largest acquisition to date has been the Heidelberg Field in Mississippi, acquired from Chevron in December 1997. This field was producing approximately 2,700 BOE/d at the time of acquisition. Even though this field was not developed as quickly as originally planned due to the low oil prices during 1998, production has increased each quarter with an aggregate increase of 144% since being acquired, to an average of 6,576 BOE/d for the first quarter of 2000. Production at this field is expected to continue to climb, primarily as a result of production responses in the waterflood units. The proven reserves increases at Heidelberg have more than offset production with proven reserves of 32.8 MMBOE as of December 31, 1999 as compared to 30.6 MMBOE as of December 31, 1997.
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