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3 months ago
BRIEF-Denbury Resources to acquire interest in Rockies CO Flood
May 30, 2017 / 10:45 AM / 3 months ago

BRIEF-Denbury Resources to acquire interest in Rockies CO Flood

May 30 (Reuters) - Denbury Resources Inc

* Denbury Resources to acquire interest in Rockies CO2 Flood

* Deal for ‍$71.5 million​

* Denbury plans to initially fund acquisition with its bank line​

* Says estimated capital costs for 2017 are approximately $5 million

* ‍Net production for acquired interest is currently estimated at 2,100 barrels per day and is expected to increase over next several years​

* Anticipates deal's cost would ultimately be offset through sale of non-productive surface acreage

* ‍Expects to recognize an additional 9 mmbbls of proved undeveloped reserves based on current development plans for acquired interest

* Denbury Resources says "acquisition builds on our goal of resuming production growth by 2018"

* Acquisition's price "should improve our credit metrics in near term"

* ‍Entered into agreement with certain units of Linn Energy to acquire their 23% non-operated working interest in salt creek field in Wyoming​ Source text for Eikon: Further company coverage:

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