Denbury Says Production has Returned to Pre-Hurricane Levels

Denbury Resources reports that its production has been restored to pre-hurricane production levels with only minor, isolated wells still shut-in. The Company did not incur any significant property damage as a result of the storms, although it has spent approximately $1.5 million to provide food, water, gasoline, power generators and other essential supplies to its employees and other charitable organizations in Mississippi and Louisiana following the storms. The Company estimates that it lost between 350,000 and 375,000 BOE of production during the third quarter as a result of the two storms, about two-thirds of which was oil production. As a result, based on preliminary data, production for the third quarter is expected to be between 27,000 and 27,500 BOE/d. The hurricane's impact on production during the fourth quarter will be much less, currently estimated at around 500 BOE/d or about 45,000 BOE of production, primarily related to natural gas wells that were shut-in during the first portion of October following Hurricane Rita.