Denbury Completes Second Phase of Bakken Sale and Asset Exchange

Mon Dec 24, 2012 7:30am EST

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Acquires Additional Carbon Dioxide ("CO2") Reserves

PLANO, Texas, Dec. 24, 2012 (GLOBE NEWSWIRE) -- Denbury Resources Inc. (NYSE:DNR) ("Denbury" or
the "Company") today announced the closing of the second and final phase of its previously
announced Bakken sale and asset exchange with Exxon Mobil Corporation and its wholly-owned
subsidiary XTO Energy Inc. (collectively, "ExxonMobil"). In the first closing, ExxonMobil retained
$350 million cash and Denbury retained a 17.5% interest in the Bakken area assets to enable an
exchange of the retained Bakken assets for roughly one-third of ExxonMobil's CO2 reserves in
LaBarge Field in Wyoming. In this second phase closing, ExxonMobil exchanged the contemplated
interest in the CO2 reserves and residual cash balances, after preliminary closing adjustments,
for Denbury's retained interest in the Bakken area assets. Denbury has now transferred all of its
Bakken area assets to ExxonMobil for approximately $1.3 billion of cash (which includes
preliminary closing adjustments) along with ExxonMobil's operating interests in Webster Field in
Texas and Hartzog Draw Field in Wyoming and a portion of its CO2 reserves in Wyoming. 

Based on the current capacity of the LaBarge plant and subject to availability, Denbury expects
that it could receive up to approximately 115 million cubic feet per day of CO2 from the plant.
Denbury will pay ExxonMobil a fee to deliver the CO2 which will initially be used to flood its
Bell Creek and Grieve fields along with the newly acquired Hartzog Draw Field. This additional
Rocky Mountain CO2 supply will allow Denbury to accelerate the planned CO2 flood of Hartzog Draw
Field and potentially defer a portion of the planned development of its Riley Ridge CO2 reserves.

Denbury continues to pursue using a portion of the cash proceeds from the transaction to purchase
interests in additional oil fields in the Gulf Coast or Rocky Mountain regions that are well
suited for CO2 enhanced oil recovery which would qualify for like-kind exchange treatment for
federal income tax purposes. Accordingly, a substantial amount of the cash paid in the transaction
remains in qualified trust accounts to fund any future potential asset purchases. 

Denbury Resources Inc. is a growing independent oil and natural gas company. The Company is the
largest combined oil and natural gas operator in both Mississippi and Montana, owns the largest
reserves of CO2 used for tertiary oil recovery east of the Mississippi River, and holds
significant operating acreage in the Rocky Mountain and Gulf Coast regions. The Company's goal is
to increase the value of acquired properties through a combination of exploitation, drilling and
proven engineering extraction practices, with its most significant emphasis relating to tertiary
oil recovery operations. For more information about Denbury, please visit

The Denbury Resources Inc. logo is available at

This press release contains forward-looking statements that involve risks and uncertainties
including those related to potential future asset acquisitions, future development plans, and
other risks and uncertainties detailed in the Company's filings with the Securities and Exchange
Commission, including Denbury's most recent reports on Form 10-K and Form 10-Q. These risks and
uncertainties are incorporated by this reference as though fully set forth herein.

         Phil Rykhoek, President and CEO, 972.673.2000
         Mark Allen, Senior Vice President and CFO, 972.673.2000
         Jack Collins, Executive Director, Investor Relations,