Denbury Resources Inc. (NYSE: DNR).(Interview)

Publication: Oil and Gas Investor

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COPYRIGHT 2005 Hart Publications, Inc.

OGI: Describe the strategy that drives your company.

Roberts: We are an unusual company in that we own a large amount of naturally occurring carbon dioxide in the state of Mississippi, which we are using to extract additional oil from otherwise depleted oilfields in Mississippi and neighboring states. That gives us a real significant strategic advantage over any of our competitors who cannot get this carbon dioxide. We're able with this process to buy old fields and schedule them for tertiary carbon dioxide flooding. With that as our backbone, we feel we will be able to increase our basic production by over 10% a year for the next five years without acquisitions, which in our industry is going to be very unusual.

OGI: Describe your core production areas.

Roberts: Phase 1 of our carbon dioxide floods is in the southwest part of Mississippi. There are three major fields in production there and several more are undergoing flood. That area is producing close to 10,000 barrels a day net to the company. Phase 2 of our carbon dioxide floods will occur in East Mississippi when the pipeline from Jackson Dome reaches that area either late...

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