East Mississippi (Non-CO2 Properties)

As of 12/31/07 - We have been active in East Mississippi since Denbury was founded in 1990 and are by far the largest producer in the basin. Historically, this has been our area with the highest production and most proved reserves, and while still significant, it is no longer the largest. Production during the fourth quarter of 2007 averaged approximately 12,530 BOE/d (25% of our Company total) and we had proved reserves of 50.6 MMBOE as of December 31, 2007 (26% of our Company total). Since we have generally owned these East Mississippi properties longer than properties in our other regions, they tend to be more fully developed, and although most are targeted for tertiary operations in the future, only three fields currently have tertiary operations (Soso, Martinville and Eucutta Fields). Production from our East Mississippi fields has been relatively consistent over the last three years, averaging 12,072 BOE/d in 2005, 12,743 BOE/d in 2006, and 12,479 BOE/d in 2007. For 2008, we expect our budget in this region for conventional operations to be around $60 million, about the same as in 2007, representing approximately 7% of our current 2008 exploration and development budget of $900 million.

Heidelberg Field

The largest field in the region and one of our largest fields corporately is Heidelberg Field, which for the fourth quarter of 2007, produced an average of 7,770 BOE/d, 4% more than the 2006 fourth quarter average of 7,444 BOE/d. Heidelberg Field was acquired from Chevron in December 1997 and was producing approximately 2,800 BOE/d at that time.

The majority of the oil production at Heidelberg is from six waterflood units that produce from the Eutaw formation (at approximately 4,400 feet). Most of our recent activity at Heidelberg has been the development of the Selma Chalk, a natural gas reservoir at a depth of around 3,700 feet. We have steadily developed the Selma Chalk since 2001, drilling from 13 to 20 wells per year, increasing the natural gas production at Heidelberg to a peak quarterly average of 17.3 MMcf/d in the fourth quarter of 2007, with average natural gas production of 16.3 MMcf/d during 2007.