Denbury Prices $1B Offering of 2020 Notes

Denbury Resources has priced its offering of $1 billion principal amount of Senior Subordinated Notes due 2020. The notes will carry a coupon rate of 8.25% and are being sold at 100% of par. The Company expects to close the sale of the notes on February 10, 2010.

The net proceeds from the offering will be placed in escrow pending the closing of the previously announced merger of Encore Acquisition Company with and into Denbury. Upon the closing of the merger, $400 million of the escrowed proceeds will be released to Denbury to finance a portion of the merger consideration. In addition, on or about the date of the closing of the notes offering, Denbury intends to offer to purchase three series of Encore's outstanding senior subordinated notes (other than Encore's 9.5% Senior Subordinated Notes due 2016). The remaining $600 million of escrowed proceeds will be used to fund repurchases pursuant to these offers or any change of control offers to be made upon consummation of the merger.