Denbury Completes North Lirette Field Well

Denbury has completed its second well in the North Lirette Field in onshore Louisiana, a follow-up to the discovery well announced in August 2003. DeGolyer & MacNaughton, the Company's independent reservoir engineering firm, has estimated that the two North Lirette wells have total proven reserves of approximately 8.9 Bcf, net to the Company's interest. The initial well is currently producing approximately 16 MMcf/d gross (8.0 MMcf/d net) and 150 Bbls/d gross (75 Bbls/d net) while the second well, which commenced production during the last two weeks, is currently producing approximately 15 MMcf/d gross (9.6 MMcf/d net) and 200 Bbls/ gross (125 Bbls/d net).

The Company has also recently drilled a successful well in the Brazos A-21 Field in the Gulf of Mexico offshore Texas, the first of five to six offshore wells scheduled by Denbury for the last half of 2003. DeGolyer & MacNaughton has estimated that this well has total proved reserves of approximately 4.8 Bcf, net to the Company's interest. The Brazos well encountered nine productive reservoirs, seven of which have not been seen in down-dip wells. The Company believes that there may be significant additional potential reserves associated with this well. This well is expected to be on production within the next month.