Denbury Resources contemplates selling operations off Texas, Louisiana

By OGJ editors
HOUSTON, Mar. 11 -- Denbury Resources Inc., Plano, Tex., has hired a financial adviser, Credit Suisse First Boston, to assist with the possible sale of its operations in federal waters off Texas and Louisiana.

A company news release said Denbruy wants to concentrate on its core operations, particularly its tertiary recovery properties.

Denbury owns interests in 81 Gulf of Mexico wells, which had 2003 average production of 47.7 Mmcfed of natural gas, although with its recent well completions offshore, production for January and February averaged slightly more than 50 MMcfed.

No buyer has been identified yet, and Denbury said it would withdraw the sales package if it does not generate a satisfactory price. The company has targeted the end of June for completing the disposition. Denbury intends to focus its capital expenditures on its carbon dioxide tertiary recovery oil projects in Mississippi.

"Our long-term plan is to concentrate our energy and investment on our tertiary operations where we have lower risk, greater predictability, virtually no competition in our areas of operation, and higher profitability," said Gareth Roberts, Denbury president and CEO.