2010-01-07-2009-12-03-2010-01-04

Acquired remaining 40% WI in Barnett shale assets, gaining 4,596 BOE/d.

Dallas-based, privately held Talon Oil & Gas LLC has closed its acquisition of Barnett shale assets from Dallas-based Denbury Resources Inc. (NYSE: DNR) for $210 million. Talon is an EnCap Investments LP-backed company formed in 2007 and led by Grant Henderson. Talon purchased 60% of the company's Barnett shale assets earlier in 2009. Production for this acquisition averaged approximately 4,596 barrels of oil equivalent per day during the third quarter. The effective date is Dec. 1, 2009. Denbury structured the deal as a tax-deferred like-kind exchange. It used proceeds to pay debt. Mitchell Wurschmidt, an analyst with KeyBanc Capital Markets Inc., estimates Denbury realized approximately $1.15 per proved Mcfe based on estimated proved reserves associated with the interest at 183.2 Bcfe, and $7,615 per flowing Mcfe/d.