Associated Press, Published March 28 2013
Denbury Resources completes $1.05 billion property deal in ND, MontanaPLANO, Texas — Denbury Resources Inc. on Thursday announced it had completed its $1.05 billion purchase of properties in North Dakota and Montana from fellow oil and natural gas company ConocoPhillips.
The properties include additional interests in some of Denbury's existing operated fields in the Cedar Creek Anticline, along with operating interests in other Cedar Creek Anticline fields. The properties span about 86,000 net acres in southwestern North Dakota and eastern Montana.
Denbury said it expects the final purchase price will be closer to $1 billion after adjustments for net cash flows. The deal was funded with part of the about $1.3 billion in cash Denbury received from the first phase of its deal to sell its holdings in the Bakken oil field to Exxon Mobil Corp.
The Plano, Texas-based company said the acquired properties are expected to contribute about 7,700 barrels of oil equivalent per day to its full-year 2013 average daily production. Nearly all of the production is estimated to be oil and natural gas liquids, the company said.
Denbury shares slipped 9 cents to $18.90 in morning trading Thursday. Its shares have traded in a 52-week range of $13.13 to $19.68. Shares of Houston-based ConocoPhillips rose 11 cents to $60.49 on morning trading Thursday. They have traded in a 52-week range of $50.62 to $62.05.
Copyright 2013 The Associated Press.