DENBURY RESOURCES INC.
NYSE : DNR

DENBURY RESOURCES INC.

August 31, 2005 12:30 ET

Denbury Resources Announces Update Regarding Hurricane Katrina Oilfield Impact

DALLAS--(CCNMatthews - Aug 31, 2005) -

Denbury Resources Inc. (NYSE:DNR) ("Denbury" or the "Company") today announced that property damage from Hurricane Katrina appears to be minor, based on preliminary reports and initial field visits. However, because of the lack of electricity and power, the Company is currently unable to restore most of its production and has as much as 90% of its oil production and 50% of its natural gas production currently shut-in as a result of the storm. Since the Company is dependent on other third parties to restore such power, it is difficult to predict when production will resume. The Company anticipates that the majority of its tertiary operations may be operational within the next week as some limited power has been restored in Southwest Mississippi, but it could be several weeks before power is restored to other areas of Mississippi and Louisiana. Restoration efforts are further handicapped by the large number of fallen trees in the Mississippi area, limiting access to the oil fields. Over 90% of the Company's production is from properties located in Louisiana and Mississippi, the areas hardest hit by the storm.

Mr. Gareth Roberts, President and CEO, stated, "We are thankful that our employees appear to be safe and that there was only minor property damage to our oil and natural gas properties. However, almost all of our employees in the Mississippi and Louisiana area have suffered significant property damage to their personal homes and property, as have their friends and neighbors. We are doing what we can to provide relief and our thoughts and prayers are with them during this time."

Denbury Resources Inc. (www.denbury.com) is a growing independent oil and gas company. The Company is the largest oil and natural gas operator in Mississippi, owns the largest reserves of carbon dioxide used for tertiary oil recovery east of the Mississippi River, and holds significant operating acreage in onshore Louisiana. The Company increases the value of acquired properties in its core areas through a combination of exploitation drilling and proven engineering extraction practices, including secondary and tertiary recovery operations.

Contact Information

  • Denbury Resources Inc., Dallas
    Gareth Roberts, 972-673-2000
    or
    Phil Rykhoek, 972-673-2000
    www.denbury.com