Denbury Resources Inc., Dallas, (NYSE: DNR) has closed the acquisition of oil properties in Mississippi and Alabama for approximately $248 million. The purchase includes controlling interests in the Tinsley Field near Jackson, Miss.; the Citronelle Field in southwest Alabama; and the South Cypress Creek Field in eastern Mississippi. All three fields are potential carbon dioxide tertiary flood candidates with reserve potential from the floods of approximately 60- to 75 million net barrels of oil equivalent. The acquisition also includes an eight-inch pipeline from the company's Jackson Dome area to the Tinsley Field. Based on initial company estimates, these properties have estimated conventional (non-CO2) proved reserves of 14.3 million barrels of oil equivalent. The fields have current production of approximately 2,200 barrels of oil equivalent per day, increasing the company's preliminary 2006 production forecast to 37,000 barrels per day, a 24% increase over 2005's estimated average production. Denbury will operate all three fields and own the majority of the working interest.
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