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To: Lorne Larson who wrote (2105)	11/28/2001 11:54:36 PM
From: mark calgary	Respond to of 11633

Dont forget it may not be just hedges, swaps or floors established with Enron that come apart as a result of the turmoil - other traders might be severely affected by the Enron collapse and there could be a ripple effect. What a crappy thought at the end of the day !!!!!!! I'm sure that there will be a flurry of press releases like this one that appear on the wires tomorrow. Mark Denbury answers queries re: hedge position with Enron Denbury Resources Inc (2) DNR Shares issued 52,800,000 Nov 28 2001 close $10.600 Wednesday Nov 28 2001 News Release Mr. Gareth Roberts reports In answer to questions about its hedge position with Enron Corp. in light of today's downgrade of Enron's debt ratings and the cancellation of Enron's proposed merger with Dynegy Inc., the natural gas price floors that the company has with Enron include a price floor for 2002 with a strike price of $4.25 per million British thermal units covering 41 million cubic feet per day, a price floor for 2003 with a strike price of $3.75 per million British thermal units covering 33 million cubic feet per day, plus other minor natural gas price floors in 2002. Based on natural gas futures prices at the close of business today, if Enron were to fully and timely make payment on these price floors, the company would receive approximately $19-million during 2002 and approximately $7-million in 2003 on these contracts. No payments currently due the company from Enron are in arrears. These hedges are part of the $18-million spent by Denbury on price floors as part of the Matrix acquisition completed in July, 2001. To date, the company has received approximately $9-million in cash payments from these floors purchased in the second quarter. Given the nature of recent developments, the company is unable to predict the amounts, if any, it will ultimately receive under the Enron hedge contracts. Substantially all of the company's price floors for the remainder of 2001, other minor natural gas price floors for 2002 and an oil price floor covering 10,000 barrels per day with a strike price of $21.00 per barrel for 2002 are with other counterparties.