Denbury Resources (NYSE: DNR) Purchases North Dakota Assets

Brian Hicks

Written By Brian Hicks

Posted January 17, 2013

Denbury Resources Inc. (NYSE: DNR) of Texas has reached a deal with ConocoPhillips (NYSE: COP), buying up some 86,000 acres across Montana and North Dakota for $1.05 billion. The deal doesn’t include ConocoPhillips’ Bakken assets, which straddle Montana, North Dakota, and Saskatchewan territory in Canada.

Per MarketWatch, the areas included in the deal averaged net production of around 13,000 barrels of oil equivalent.

In September, Denbury earned $1.3 billion through the sale of its Bakken assets to Exxon Mobil Corp. (NYSE: XOM), and part of that money is going to finance the ConocoPhillips deal. The sale was part of the company’s efforts to focus on its CO2 injection fields.

The arrangement should increase Denbury’s average production for this year by a projected 7,700 barrels of oil equivalent per day. And ConocoPhillips now can declare total asset sales of some $12 billion for 2012, beating earlier estimates of $8-10 billion.

The deal will likely close in Q1.

The news sent Denbury’s stocks up 5.2 percent by close on Tuesday to $17.85, and it was up again 0.84% on Thursday morning. ConocoPhillips, meanwhile, saw its shares rise a comparatively modest 1 percent on Tuesday.

Angel Publishing Investor Club Discord - Chat Now

Brian Hicks Premium

Introductory

Advanced

Even Amazon is Investing in Nuclear

Amazon, the global e-commerce powerhouse, is gearing up for a groundbreaking energy revolution. Teaming up with three leading nuclear company, they're making waves with an innovative plan to utilize nuclear energy using Small Nuclear Reactors (SMRs) . The e-commerce giant signed three deals for SMR development in Virginia. We reveal the names and ticker symbol of the company they're partnering with in our FREE report, "Even Amazon Is Investing in Nuclear." This news could make their share price sky rocket at any moment! Sign up below to get your free copy delivered to your inbox right away.

Sign up to receive your free report. After signing up, you'll begin receiving the Energy and Capital e-letter daily.