The Company’s largest EOR developments in the Gulf Coast region are at the Hastings and Oyster Bayou fields in Texas, as well as the Heidelberg and Tinsley fields in Mississippi. Denbury is continuously pursuing additional development opportunities in these existing fields to improve and increase sweep efficiency and ultimate economic recovery within the reservoirs.  

The Company currently operates and produces oil through primary and secondary recovery (waterflood) at four fields in southeast Texas that are potential future EOR development potential: Webster, Conroe, Manvel and Thompson. Each of the fields is geologically similar to the Company’s Hastings field, and the Webster field is already connected to Denbury’s CO₂ pipeline infrastructure. Future development of these fields provides additional growth potential for the Company.

Jackson Dome (Natural Source)

Our primary Gulf Coast CO₂ source, Jackson Dome, located near Jackson, Mississippi, was discovered during the 1970s by oil and gas companies that were exploring for hydrocarbons. This large and relatively pure source of naturally occurring CO₂ (98% CO₂) is, to our knowledge, the only significant underground deposit of CO₂ in the United States east of the Mississippi River.

We acquired Jackson Dome in February 2001 in a purchase that also gave us ownership and control of the NEJD CO₂ pipeline and provided us with a reliable supply of CO₂ at a reasonable and predictable cost for our Gulf Coast CO₂ tertiary recovery operations. Since February 2001, we have acquired and drilled numerous CO₂ producing wells, significantly increasing our estimated proved Gulf Coast CO₂ reserves from approximately 800 Bcf at the time of acquisition of Jackson Dome to approximately 3.8 Tcf as of December 31, 2022. During 2022, Denbury produced approximately 9 million metric tons of CO₂ from Jackson Dome for use in its EOR operations.

Industrial CO₂ Sources

Denbury’s goal is to replace the use of natural CO₂ with industrial-sourced CO₂, contributing to the long-term decarbonization goals of our planet. We are currently acquiring industrial-captured CO₂ from two existing facilities along the Gulf Coast, comprising nearly one million metric tons per year of CO₂. We have purchased CO₂ from an industrial facility in Port Arthur, Texas and from an industrial facility in Geismar, Louisiana since 2013. Denbury’s uptime reliability in transporting CO₂ from these facilities has been nearly 100% since inception.

Additionally, we are in ongoing discussions with a significant number of potential customers, both existing and newbuild projects, that are planning to capture CO₂ from their facilities near Denbury’s CO₂ pipeline infrastructure in Louisiana, Mississippi, and Texas.