Denbury Inc. entered an agreement on Dec. 29 to acquire a pair of CO₂ EOR fields in Wyoming from a subsidiary of Devon Energy Corp., boosting the Plano, Texas-based company’s low-carbon footprint in the Rocky Mountain region.

As part of the agreement, Denbury will pay the Devon subsidiary up to $20 million in cash for a nearly 100% working interest (approximately 83% net revenue interest) in the Big Sand Draw and Beaver Creek oil fields located in Wyoming’s Freemont County. Net production from the acquired fields was about 2,800 boe/d for third-quarter 2020, of which roughly 85% was oil production.

Denbury described the acquisition in a Dec. 29 company release as a bolt-on in a key operating area that supports its CO₂ EOR-focused strategy, which the independent oil and natural gas company adopted after completing a financial restructuring and emerging from bankruptcy in September.

Already have an account? Log In

Thanks for reading Hart Energy.

Sign Up now to get unmatched coverage of the oil and gas industry’s entire landscape.

Free Access