UPDATE 1-Denbury lowers 2009 production view, shares fall
* Lowers '09 production view by 3,500 BOE/d * Bank borrowing base reduced to $900 mln from $ 1 bln * Shares down 6 pct
July 6 (Reuters) - Oil and gas company Denbury Resources Inc (DNR.N) lowered its 2009 production view, following the close of the sale of 60 percent of its Barnett Shale natural gas assets.
The company said production from the properties sold averaged about 45.7 million cubic feet equivalent per day (mmcfe/d) during 2008, about 16 percent of its 2008 production.
"As a result of the sale, the company is lowering its 2009 production guidance by 3,500 barrels of oil equivalent per day (boe/d) to an adjusted average of 47,500 boe/d," Denbury said.
In May, the company said it will sell 60 percent of its Barnett Shale natural gas assets for $270 million to privately held Talon Oil & Gas LLC. At the time, the company also said its $1.0 billion bank borrowing base would likely decrease. [ID:nBNG368319]
On Monday, Denbury said while its bank borrowing base was reduced to $900 million from $1.0 billion, as a result of the sale, the bank commitment amount remained unchanged at $750 million.
Shares of the company were down 6 percent at $12.98 in trading before the bell Monday. They had closed at $13.83 Thursday on the New York Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Jarshad Kakkrakandy)
