The Oil & Gas Conference August 16, 2011 NYSE: DNR
A Different Kind of Oil Company Leading CO2 Enhanced Oil Recovery (EOR) Company in the U.S. with a Unique Profile Scale Top 10 oil producer(1) ; 9 billion enterprise value 33% compound annual growth rate (CAGR) in EOR…
Positioned to Deliver Long-term Sustainable Growth An EOR focused company Targeting a large, attractive market Strengths we are leveraging Sustainable growth 4
What is CO2 EOR & How Much Does It Recover Secure CO2 Supply Transport via Pipeline Inject into Oilfield EOR Delivers Almost as Much Production as Primary and Secondary Recovery(1) Tertiary Recovery Remaining (CO2 EOR) Oil…
Positioned to Deliver Long-term Sustainable Growth An EOR focused company Targeting a large, attractive market Strengths we are leveraging Sustainable growth 6
Our Two EOR Target Areas: Up to 10 Billion Barrels Recoverable with EOR Rockies Estimated 1.3 to 3.2 MT ND Billion Barrels Recoverable Greencore ID Pipeline SD Lost Cabin WY IL IN Grieve Field JV KY MS Delta…
Positioned to Deliver Long-term Sustainable Growth An EOR focused company Targeting a large, attractive market Strengths we are leveraging Sustainable growth 8
Denbury at a Glance Total 3P Reserves (6/30/11) 1.3 BBbls Proved Reserves % Oil (6/30/11) 85% Market Cap (7/29/11) 7.7B Total Production (2Q11) 63,604 BOE/d Proved PV-10 (6/30/11 at 90.09 Oil Price) 9.3B CO2 3P Reserves…
Set to Repeat Gulf Coast EOR Success in Rockies Plus Additional Growth Platform in Bakken Rockies Bakken 3P Inventory 233 Million EOR Barrels ND 350 Million Barrels MT Greencore ID Pipeline SD Lost Cabin WY IL IN…
More than a Billion Barrels of Oil Potential 1,400 1,260 567 100% 92% 1,200 Oil Oil 1,000 MMBOE 800 276 600 85% Oil 400 417 85% Oil 200 0 6/30/11 Proven +Bakken Drilling +EOR Potential =Total Potential…
Proven Growth Record Last 11 Years Net Daily Oil Production Tertiary Operations (through 6/30/11) Bbls/d Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 35,000 30,000 25,000 20,000 33% CAGR 15,000 (1999-2010) 10,000…
Strength 2. Powerful Platform One of the most experienced EOR teams in the industry Unmatched strategic infrastructure Own or control 835 miles of CO2 pipeline Largest CO2 source in Gulf Coast region Long-life EOR assets in two…
Strength 3. Compelling Economics EOR Bakken 525,000 BOE / Well Gulf Coast Model 7.5 Million / Well Averages 20% Royalty NYMEX oil price 80.00 80.00 Finding & development cost: Field 8.00 17.85 Infrastructure 3.50 --- Total…
Complementary Production Profiles Projected Production Profile with Same Capital Spending Capital Spending per Year Based on EOR Spending Pattern 12,000 Year MM Gulf Coast EOR Field 1 83 2 83 Bakken 3 60 10,000 4 60 5 68 6 52…
Strength 4. Secure CO2 Supply to Support Gulf Coast Growth 2,500 Possible 2,000 2 Tcf Probable 1,500 2.8 Tcf MMCFPD CO2 Recycle 3.5 Tcf 1,000 (Proved Only) Anthropogenic Supply Jackson Dome 165 MMCFPD 500 Proved…
Strength 4. Riley Ridge Acquisition Provides CO2 Supply for Rocky Mountains Purchased remaining 57.5% working interest in the 9,700+ acre Riley Ridge Unit Purchased 33% working interest in the adjoining 28,000 acre Horseshoe Unit…
Strength 5. Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage Tinsley 5 Delhi 3 46 MMBbls 38 MMBbls Tinsley Summary Jackson Dome Proved 158 Delhi (2) Probable 334 Free State Pipeline Davis…
Strength 5. Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage Cedar Creek Anticline 197 MMBbls(1) CO2 Sources MONTANA DGC Beulah Existing Anthropogenic (Man-made) Cedar Creek Anticline Proposed…
Strength 6. Third Growth Platform (Bakken Area) Bakken Area 266,000 net acres 350 MMBOE of total potential 73.6 MMBOE Proved as of 6/30/2011 5 operated rig drilling program Anticipate 6th rig late 3Q11 to test Almond area…
Strength 7. Strong Financial Position 1.6 billion availability under Debt to Capitalization credit facility on 6/30/11 (6/30/11) 33% Debt Unused Credit 100% Facility 1.6 billion borrowing base + (6/30/11) Cash 122…
2011 Capital Budget 2011 Capital Budget 1.35 Billion(1) All Other 75MM Tertiary Floods 475MM Bakken 400MM CO2 Sources CO2 Pipelines 200MM 200MM (1) Excludes capitalized interest and capitalized EOR startup costs, estimated…
Hedges Protect Against Downside in Near-Term(1) Crude Oil 2011 2012 2nd Half 1st Quarter 2nd Quarter 2nd Half Approximate production hedged (2) 80% 80% 80% 80% Principal price support 70 70 70 80 Principal price ceilings 100…
Positioned to Deliver Long-term Sustainable Growth An EOR focused company Targeting a large, attractive market Strengths we are leveraging Sustainable growth 24
Strong, Sustainable EOR Growth through 2020 120,000 100,000 Oyster Bayou Hastings Bell Creek 29,062 Conroe Cedar Creek Anticline Citronelle 25
Estimated Peak Production Rates Expected Peak Production Rate (Net BOE/d) Area Expected Peak Year < 5,000 5-10,000 10-15,000 15-20,000 20,000 Oyster Bayou 2012 2013 Tinsley 2012 2013 Heidelberg 2014 2016 Delhi 2015 2017 Bell…
IN SUMMARY: Investment Highlights A Different Kind of Oil Company Leading CO2 Enhanced Oil Recovery (EOR) Company in the U.S. with a Unique Profile Scale Top 10 oil producer(1) ; 9 billion enterprise value 33% compound annual…
Corporate Information Corporate Headquarters Denbury Resources Inc. 5320 Legacy Drive Plano, Texas 75024 Ph: (972) 673-2000 Fax: (972) 673-2150 denbury.com Contact Information Phil Rykhoek Chief Executive Officer (972)…
Appendix
CO2 Operations: Oil Recovery Process CO2 PIPELINE - from Jackson Dome INJECTION WELL - Injects CO2 in dense phase PRODUCTION WELLS Produce oil, water and CO2 Oil Formation (CO2 is recycled) CO2 moves through formation…
CO2 EOR Generalized Type Curve (Log Scale) Plateau Production Rate Incline (Yrs) Plateau (Yrs) Decline (Yrs) Large Fields 6 6.5 30 Average Fields 4.5 5.5 25 Small Fields 4 5 20 31
Encore Acquisition was Highly Profitable Purchase price: (Billions) Equity 2.8 Debt assumed 1.0 (1) Total value 3.8 Value: (Estimated values at 79.43/Bbl 12/31/10 SEC Pricing) Proved reserves at 12/31/10 2.0 (2) Proceeds…
Production by Area (BOE/d) OLD REVISED Pro forma Pro forma Operating area 2Q10 3Q10 4Q10 1Q11 2Q11 2011E 2011E 1Q10(1) 2010(1) Tertiary Oil Fields 27,023 28,507 29,531 31,139 29,062 30,825 30,771 32,500 31,000 Mississippi Non-CO2…
Potential Carbon Gasification Projects Denbury purchase contracts (contingent on plants being completed) Initial production expected +/- 4 years after construction begins (not before 2014) Gulf Coast Sources (0.29 to 0.44/Mcf 60 Oil)…
Rockies Anthropogenic CO2 Rocky Mountain Purchase Contracts MMCFD COP Lost Cabin (Central Wyoming) +/- 50 XOM LaBarge (SW Wyoming) (1) +/- 50 DKRW Medicine Bow (SE Wyoming) (2) +/- 200 Rocky Mountain CO2 Ownership MMCFD Riley…
2011 Operated Bakken Well Activity 30-Day 60-Day 90-Day Avg.(2) Avg.(2) Avg.(2) Unit Frac IP Completed 2011 Area Formation IP (1) Acres Stages W. I. Date (BOE/d) (BOE/d) (BOE/d) Murphy Franchuk 34-19SWH Bakken 2,006 541 471 411…
2011 Operated Bakken Well Activity 30-Day 60-Day 90-Day Avg.(2) Avg.(2) Avg.(2) Unit Frac IP Completed 2011 Area Formation IP (1) (BOE/d) (BOE/d) (BOE/d) Acres Stages W. I. Date Camp/ Lindvig 14-10 NEH Bakken 626(3) 290 223 N/A 1,280…
2011 Operated Bakken Well Activity 30-Day 60-Day 90-Day Avg.(2) Avg.(2) Avg.(2) Unit Frac IP Completed 2011 Area Formation IP (1) (BOE/d) (BOE/d) (BOE/d) Acres Stages W. I. Date Loomer 34-4 NWH Cherry Bakken 2,574 N/A N/A N/A 640 16…
Most Recent Operated Bakken Well Activity Frac Unit Frac Completing Area Formation Date 30-Day Avg. Acreage Stages W. I. Wolff 13-24 NEH Cherry Bakken Aug 2011 N/A 1,280 24-30 63% Sorenson 34-32 NWH Cherry Bakken Aug 2011 N/A 1,280…
Bakken Area Production Zones Approx. Net Productive Zone Estimated Acreage Area MB Sanish Wells/DSU (1,000s) Charlson 6 15 Murphy Creek 6 18 Bear Creek 6 10 Cherry 6 66 Lone Butte 6 9 Camp/Indian Hills 6 16 Almond 3…
Capital Structure Pro Forma(1) (MM) 3/31/11 3/31/11 6/30/11 Cash 128 73 122 Bank credit facility --- --- --- 7.500% Sr. Sub Notes due 2013 55 --- --- 7.500% Sr. Sub Notes due 2015 --- --- --- 9.500% Sr. Sub Notes due 2016 239 239…
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