PLANO, Texas, Feb. 11, 2014 (GLOBE NEWSWIRE) -- Denbury Resources Inc. (DNR) ("Denbury" or the "Company") announced today that its total estimated proved oil and natural gas reserves at December 31, 2013 were 468 million barrels of oil equivalent ("MMBOE"), consisting of 387 million barrels of crude oil, condensate and natural gas liquids (together, "liquids"), and 81 MMBOE (or 490 billion cubic feet) of natural gas. Reserves were 83% liquids and 62% proved developed, and 49% of such reserves were attributable to Denbury's carbon dioxide ("CO2") enhanced oil recovery ("tertiary") operations. Total tertiary reserves at December 31, 2013 were 230 MMBOE, up 15% from the prior year-end level of these reserves of 201 MMBOE, primarily as a result of initial tertiary reserves bookings at Bell Creek Field in the Rocky Mountain region during the fourth quarter.
Denbury's aggregate proved reserves additions during 2013 were 85 MMBOE, representing a 330% reserves replacement-to-production ratio. The proved reserve additions consisted primarily of 34 MMBOE of reserves from tertiary development of Bell Creek Field and 42 MMBOE of reserves acquired in the Cedar Creek Anticline of Montana and North Dakota during the first quarter of 2013. These additions were offset by 26 MMBOE of production during the year.
The estimated discounted net present value of Denbury's proved reserves at December 31, 2013, before projected income taxes, using a 10% per annum discount rate ("PV-10 Value", a non-GAAP measure), was $10.6 billion, as compared to $9.9 billion at December 31, 2012.
I dropped DNR from the Sweet 16 because they no longer have 10% annual production growth locked in. However, it is clearly trading at a deep discount to its break-up value. I think First Call's Price Target of $21.69 is very conservative. DNR is heavily weighted to oil.