CORP / Denbury Resources Announces Year-end Proved Reserves
TSE, NYSE SYMBOL: DNR
JANUARY 23, 1998
DALLAS, TEXAS and CALGARY, ALBERTA--On January 22, 1998, Denbury
Resources Inc. filed an amendment to its registration statement
covering the proposed sale of $87.6 million of common shares and
$125 million of Senior Subordinated Notes due 2008.
In connection with the amendment, the Company updated its
estimates of proved reserves to December 31, 1997. Total proved
reserves were 52.0 million barrels of oil and 77.2 Bcf of gas, or
64.9 million BOEs on an equivalent basis, including 27.6 million
BOEs relating to the properties recently acquired from Chevron.
This compares to a total of 27.4 million BOEs as of December 31,
1996.
The present value of these proved reserves at December 31, 1997 is
$361 million, calculated in accordance with SEC requirements on an
unescalated basis using year-end 1997 prices and a 10 percent
discount rate ("PV10 Value"). The 1997 reserve report was based
on a West Texas Intermediate oil price of $16.18 per Bbl and a
NYMEX Henry Hub price of $2.58 per MMBtu, a price decline of 31
percent and 34 percent for oil and gas respectively, from the
prior year-end prices. Using consistent oil and gas pricing, the
PV10 Value would have increased 35 percent (excluding the
properties acquired from Chevron) between December 31, 1996 and
December 31, 1997. The reserves were estimated by Netherland,
Sewell and Associates, an independent engineering firm located in
Dallas, Texas.
Denbury is a growing independent oil and gas company engaged in
acquisitions, development and exploration activities primarily in
the states of Louisiana and Mississippi. |
