Denbury Resources, Inc. - Introduction

Introduction

5100 Tennyson Parkway, Suite 3000
Plano, Texas 75024
U.S.A.
Telephone: (972) 673-2000
Fax: (972) 673-2150
Web site: http://www.denbury.com

Public Company
Incorporated: 1951 as Key Lake Mines Limited (N.P.L.)
Employees: 374
Sales: $393.70 million (2003)
Stock Exchanges: New York
Ticker Symbol: DNR
NAIC: 211111 Crude Petroleum and Natural Gas Exploration

Denbury Resources, Inc. is an independent oil and gas company that ranks as the largest operator in Mississippi. Denbury also owns producing fields in Louisiana, but its signature properties are in Mississippi, where the company owns the largest reserves of carbon dioxide. Carbon dioxide, when injected into an oilfield, acts as a type of solvent for the oil, causing it to expand and become mobile, easing its recovery. Denbury began using carbon dioxide to extract oil from proven oilfields in the late 1990s, a move that led to the transformation of the company into what is known as a tertiary exploitation producer, as opposed to an exploration and production company reliant on traditional acquire-drill-exploit tactics. Denbury's carbon dioxide properties are located in western Mississippi. In eastern Mississippi, the company owns interests in 504 wells, deriving the majority of its business from the largest field in the region, the Heidelberg field. Denbury owns interests in 87 wells in Louisiana, maintaining a presence in the southern part of the state.