Denbury's Green Pipeline Construction

Approximately four years ago, we embarked on a plan to build a CO2 pipeline across the Louisiana and Texas Gulf Coast that would deliver CO2 to Hastings Field, located near Houston, Texas. We completed the pipeline construction in 2010, with the final section going into service in mid-December. This pipeline is currently transporting CO2 from our natural source at Jackson Dome, located near Jackson, Mississippi, to Oyster Bayou and Hastings Fields. We plan to expand this line within the next three years to our most recent Gulf Coast acquisition, Conroe Field, and we expect to ship our first man-made ("anthropogenic") CO2 on this line in approximately two years. We have contracted approximately 50 MMcf/d from a plant near Port Arthur, Texas, and expect other sources of anthropogenic CO2 to be transported via this pipeline in the future. This pipeline is a strategic asset for us. It will enable us to transport CO2 to our existing oil fields and allow us to acquire other CO2 EOR, amenable oil fields in the Gulf Coast region, making its completion a significant milestone for the Company.

Denbury Resources Inc. (NYSE: DNR) is a growing independent oil and gas company. The Company is the largest oil and natural gas producer in both Mississippi and Montana, owns the largest reserves of carbon dioxide (CO2) used for tertiary oil recovery east of the Mississippi River, and holds significant operating acreage in the Rocky Mountain and Gulf Coast regions. The Company's goal is to increase the value of acquired properties through a combination of exploitation, drilling and proven engineering extraction practices, with its most significant emphasis on CO2 tertiary recovery operations.

To learn more about Denbury Resources Inc., please visit ww.denbury.com.

Category:

Science & Technology

Tags:

• CO2 pipeline
• denbury resources
• green pipeline
• carbon dioxide
• greenhouse gas
• co2 enhanced oil recovery
• co2 eor
• industrial co2
• co2 sequestration

[WudIzThePoint]

Keep up the good work!