NYSE:DNR $ 1.83 +0.03 +1.67% Volume: 4,733,433 May 23, 2017
non-tertiary-operations

Webster Field. We acquired our interest in Webster Field in the fourth quarter of 2012 as part of the Bakken exchange transaction. 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. We currently anticipate completing our plans for optimization of tertiary development of Webster Field during 2016, at which point we will determine the tertiary development schedule for the field, the timing of which could be delayed depending on future oil prices or revised development plans.

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 a total aggregate value of $439 million. A pipeline must be constructed so that CO2 can be delivered to Conroe 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. We currently expect that over the next few years we will begin construction of this pipeline and prepare to commence CO2 injections at Conroe Field, the timing of which may change depending on future oil prices.

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 currently scheduled several years in the future, the ultimate timing of which is primarily dependent upon future oil prices.

1.83 +0.03 +1.67% Volume: 4,733,433 05/23/17
| Site Design by Eisenberg And Associates