Profile: Denbury Resources Inc (DNR)
25 Nov 2015
Denbury Resources Inc., incorporated on April 20, 1999, is an independent oil and natural gas company. The Company’s operations are focused in two operating areas: the Gulf Coast and Rocky Mountain regions. The Company’s properties with proved and producing reserves in the Gulf Coast region are situated in Mississippi, Texas, Louisiana and Alabama, and in the Rocky Mountain region are situated in Montana, North Dakota and Wyoming. As of December 31, 2014, the Company had estimated proved oil and natural gas reserves of 437.7 million barrels of oil equivalent (MMBOE), of which 83% is oil.
Gulf Coast Region
The Company’s primary Gulf Coast CO2 source is Jackson Dome. Jackson Dome is located near Jackson, Mississippi. Gulf Coast CO2 source, Jackson Dome, is located near Jackson, Mississippi. In addition to its natural source of CO2, the Company purchases CO2 from an industrial facility in Port Arthur, Texas and from an industrial facility in Geismar, Louisiana, which supplies, in the aggregate, approximately 185 MMcf/d of CO2 to the Company’s enhanced oil recovery (EOR) operations. The Company holds interest in the 183-mile NEJD CO2 pipeline that runs from Jackson Dome to near Donaldsonville, Louisiana. As of December 31, 2014, the Company has access to over 950 miles of CO2 pipelines, which deliver CO2 throughout the Gulf Coast region. In addition to the NEJD CO2 pipeline, the major pipelines in the Gulf Coast region are the Free State Pipeline (90 miles), the Delta Pipeline (110 miles), the Green Pipeline Texas (120 miles) and the Green Pipeline Louisiana (200 miles).
The Company’s mature properties include its longest-producing properties, which are located along its NEJD CO2 pipeline in southwest Mississippi and Louisiana and its Free State Pipeline in east Mississippi. The group of properties includes the Company’s initial CO2 field, Little Creek, as well as several other fields, including Brookhaven, Cranfield, Eucutta, Lockhart Crossing, Mallalieu, Martinville, McComb and Soso fields. Many of these fields contain multiple reservoirs that are amenable to CO2 EOR. Delhi Field is located east of Monroe, Louisiana. As of December 31, 2014, the estimated PV-10 Value of Delhi Field was $546.6 million. Hastings Field is located south of Houston, Texas. As of December 31, 2014, the estimated PV-10 Value of Hastings Field was $1 billion. Heidelberg Field is located in Mississippi and consists of an East Unit and a West Unit. As of December 31, 2014, the estimated PV-10 Value of Heidelberg Field was $904 million. Oyster Bayou Field is located in southeast Texas, east of Galveston Bay. As of December 31, 2014, the estimated PV-10 Value of Oyster Bayou Field was $508.2 million. Tinsley Field is located in Mississippi. As of December 31, 2014, the estimated PV-10 Value of Tinsley Field was $829.2 million. Webster Field is located in Texas. Conroe Field is located in north of Houston, Texas. As of December 31, 2014, Webster Field had estimated proved non-tertiary reserves of approximately 3.0 MMBOE. Thompson Field is located in Texas. Thompson Field had estimated proved non-tertiary reserves of approximately 10.2 MMBOE at December 31, 2014, net to its interest, of which approximately 77% is proved developed.
Rocky Mountain Region
The Company’s LaBarge Field is located in southwestern Wyoming. As of December 31, 2014, the Company’s interest in LaBarge Field consisted of approximately 1.2 one trillion cubic feet (Tcf) of proved CO2 reserves. The Riley Ridge Federal Unit is also located in southwestern Wyoming and produces gas from the same LaBarge Field. As of December 31, 2014, the Company’s interest in Riley Ridge and minor surrounding acreage contained net proved reserves of 368 one billion cubic feet (Bcf)of natural gas and 1.8 Tcf of CO2 reserves. The 20-inch Greencore Pipeline in Wyoming is the first CO2 pipeline the Company has constructed in the Rocky Mountain region. Bell Creek Field is located in southeast Montana. As of December 31, 2014, the estimated PV-10 Value of Bell Creek Field was $721.7 million. Cedar Creek Anticline (CCA) is located in Montana. CCA is a series of 14 different operating areas, each of which could be considered a field by itself. The non-tertiary proved reserves associated with CCA were 103.9 one million barrels (MMBbls) of oil and 15.8 Bcf of gas as of December 31, 2014. Hartzog Draw Field is located in the Powder River Basin of northeastern Wyoming, approximately 12 miles from its Greencore Pipeline. As of December 31, 2014Hartzog Draw Field had estimated proved reserves of approximately 5.0 MMBOE.
Denbury Resources Inc
5320 Legacy Dr
PLANO TX 75024-3127