Denbury Buys Interest In Cedar Creek Anticline

Purchases producing property interests in the Cedar Creek Anticline of Montana and North Dakota.

Denbury Resources Inc. (NYSE: DNR) has closed on the purchase of producing property interests in the Cedar Creek Anticline of Montana and North Dakota from a wholly-owned subsidiary of ConocoPhillips (NYSE: COP) for cash consideration of about $1.05 billion.

The acquired assets include additional interests in certain of Denbury's existing operated fields in Cedar Creek Anticline (CCA) along with operating interests in other CCA fields.

The company estimates the final adjusted purchase price will be closer to $1.0 billion after adjustment for the net cash flows from the assets between the January 1, effective date and the closing date. The purchase was part of a like-kind exchange transaction that was funded with a portion of the cash received from the company's Bakken sale and asset exchange with ExxonMobil completed in December 2012.

As previously announced, Denbury estimates the acquired properties will contribute approximately 7,700 barrels of oil equivalent per day to its full-year 2013 average daily production, which reflects estimated average daily production of about 10,200 BOE per day for the remainder of the year. Approximately 99% of this production is estimated to be oil and natural gas liquids.

Denbury is a domestic independent oil and natural gas company whose primary focus is on enhanced oil recovery utilizing carbon dioxide and its operations are focused in two key operating areas: the Gulf Coast region and Rocky Mountain region. Denbury is the largest combined oil and natural gas producer in both Mississippi and Montana, and owns the largest reserves of carbon dioxide used for tertiary oil recovery east of the Mississippi River.