DNR's Proven Reserves up 16%
Posted: Mon Feb 06, 2012 2:58 pm
PLANO, Texas, Feb. 6, 2012 (GLOBE NEWSWIRE) -- Denbury Resources Inc. (NYSE:DNR - News) ("Denbury" or the "Company") today announced its total estimated proved oil and natural gas reserves as of December 31, 2011, were 461.9 million barrels of oil equivalent ("MMBOE"), consisting of 357.7 million barrels ("MMBbls") of crude oil, condensate and natural gas liquids and 625.2 billion cubic feet ("Bcf") (104.2 MMBOE) of natural gas.
> Reserves were 77% oil, 56% proved developed, and 32% were attributable to tertiary oil operations.
> Denbury's reserve quantities increased approximately 64.0 MMBOE, or 16%, from reserves a year ago and the Company replaced approximately 367% of 2011 production.
> Reserve growth was mainly driven by additions from Denbury's Bakken drilling activity and Riley Ridge acquisition.
The estimated discounted net present value of Denbury's proved reserves, before projected income taxes, using a 10% per annum discount rate ("PV-10") was $10.6 billion at December 31, 2011, an increase of 45% from $7.3 billion a year earlier.
Bakken is their primary source of production growth
Denbury's aggregate proved reserve additions of 88.0 MMBOE during 2011 include approximately 48.2 MMBOE from the development of Bakken properties and approximately 39.5 MMBOE of natural gas reserves added by the Riley Ridge acquisition. Total tertiary oil reserves were 147.6 MMBOE, essentially flat from a year ago after adjusting for estimated 2011 production as the Company did not commence any new tertiary oil floods during the year. With the recent startup of the Hastings and Oyster Bayou tertiary floods, Denbury anticipates significant tertiary oil reserve additions in 2012. Year-end proved Bakken reserves were approximately 93.9 MMBOE, approximately double the prior year-end level. The year-end PV-10 of proved reserves attributable to Denbury's tertiary oil and Bakken properties were $5.7 billion and $1.5 billion, respectively.
> Reserves were 77% oil, 56% proved developed, and 32% were attributable to tertiary oil operations.
> Denbury's reserve quantities increased approximately 64.0 MMBOE, or 16%, from reserves a year ago and the Company replaced approximately 367% of 2011 production.
> Reserve growth was mainly driven by additions from Denbury's Bakken drilling activity and Riley Ridge acquisition.
The estimated discounted net present value of Denbury's proved reserves, before projected income taxes, using a 10% per annum discount rate ("PV-10") was $10.6 billion at December 31, 2011, an increase of 45% from $7.3 billion a year earlier.
Bakken is their primary source of production growth
Denbury's aggregate proved reserve additions of 88.0 MMBOE during 2011 include approximately 48.2 MMBOE from the development of Bakken properties and approximately 39.5 MMBOE of natural gas reserves added by the Riley Ridge acquisition. Total tertiary oil reserves were 147.6 MMBOE, essentially flat from a year ago after adjusting for estimated 2011 production as the Company did not commence any new tertiary oil floods during the year. With the recent startup of the Hastings and Oyster Bayou tertiary floods, Denbury anticipates significant tertiary oil reserve additions in 2012. Year-end proved Bakken reserves were approximately 93.9 MMBOE, approximately double the prior year-end level. The year-end PV-10 of proved reserves attributable to Denbury's tertiary oil and Bakken properties were $5.7 billion and $1.5 billion, respectively.