2010-09-15-2009-11-02-2010-09-02

Canceled sale of Elk Basin Field in WY following inability to agree on the value of the potential tertiary reserves.

Denbury Resources Inc., Dallas, (NYSE: DNR), as the owner of Encore Energy Partners GP LLC, the general partner of MLP Encore Energy Partners LP (NYSE: ENP), reports that it has terminated the previously announced consideration of a sale or other asset transaction between the company and Encore regarding Elk Basin Field.

The process had been initiated in light of the substantial future capital requirements to flood that field as a possible CO2 tertiary project. No agreement could be reached on the value of the potential tertiary reserves. Denbury will now focus on its previously announced intent to sell its interest in Encore Energy Partners and all or part of the Encore common units it owns.

In March, Denbury closed its acquisition of Fort Worth, Texas-based Encore Acquisition Co. (NYSE: EAC) for approximately $4.5 billion in cash, stock and debt assumption, including the value of the minority interest in Encore Energy Partners, making it one of the largest oil-focused independent oil and gas companies in the U.S.