NYSE:DNR $ 1.60 +0.00 +0% Volume: 13,541,700 December 13, 2017
non-tertiary-operations

Future Tertiary Operations

Webster Field. We acquired our interest in Webster Field in the fourth quarter of 2012. The field is located in Texas, approximately eight miles northeast of our Hastings Field which we are currently flooding with CO2. Webster Field is geologically similar to our Hastings Field, producing oil from the Frio zone at similar depths; as a result, we believe it is well suited for CO2 EOR. In 2014, we completed a nine-mile lateral between the Green Pipeline and Webster Field, which will eventually deliver CO2 to the field. The timing of CO2 injections at Webster Field is primarily dependent upon future oil prices.

Conroe Field. Conroe Field, our largest potential tertiary flood in the Gulf Coast region, is located north of Houston, Texas. We acquired a majority interest in this field in 2009 for $271 million in cash and 11.6 million shares of Denbury common stock, for a total aggregate value of $439 million. To initiate a CO2 flood at Conroe Field, a pipeline must be constructed so that CO2 can be delivered to the field. This pipeline, which is planned as an extension of our Green Pipeline, is preliminarily estimated to cover approximately 90 miles at a cost of approximately $220 million. Our current plan for initiating a CO2 flood at Conroe Field is scheduled several years from now, the timing of which may change depending on future oil prices and pipeline construction.

Thompson Field. We acquired our interest in Thompson Field in June 2012 for $366 million. The field is located in Texas, approximately 18 miles west of our Hastings Field. Thompson Field is geologically similar to Hastings Field, producing oil from the Frio zone at similar depths, and we therefore believe it has CO2 EOR potential. The timing of CO2 injections at Thompson Field is primarily dependent upon future oil prices.

1.60 +0.00 +0% Volume: 13,541,700 12/13/17
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