The Denbury Transcript -- Presence In North Dakota Is Quite Notable

Link at SeekingAlpha:

We either have current EOR floods or future EOR floods or we have assets that produce CO2, and those are basically that’s our portfolio.

So, because it all relates to EOR as you would expect or highly weighted toward oil, 94% oil and you can see various numbers now. The PV-10 here on this slide has not been adjusted for the acquisition we closed on end of March, the ConocoPhillips purchase of Cedar Creek Anticline. So, that was about a $1 billion transaction. So you could add about a $1 billion to that number.

If you’re not familiar with Denbury, we basically traded the Bakken to Exxon for cash, two oilfields we could flood and some of the CO2 assets and then we took that cash and the like kind of exchanged and purchased ConocoPhillips Cedar Creek Anticline assets. So, it was about $4 billion of transactions, about $2 billion of sales and about $2 billion of purchases.

So we closed on the last piece of that March 31st and so therefore the second quarter was the first full quarter where you had a production contribution from the assets that we traded. And if you look at it, we ended up roughly in the same place on a production basis after you get through all the trades. But there were a couple of quarters there was a little different.

The Cedar Creek Anticline:

We picked up Hartzog from the Exxon trade. We picked up additional interest at Cedar Creek Anticline from ConocoPhillips. So Cedar Creek Anticline is our single biggest flood that we plan to do and it’s also our biggest current producer. Like sometimes people kind of overlook that but CCA is producing 19,000 barrels a day of conventional oil production, so it is by far our biggest field.

This was the news story on that DNR - Cedar Creek purchase earlier this year:

Denbury Resources Inc. agreed to acquire producing property interests in the Cedar Creek anticline of Montana and North Dakota from a wholly owned subsidiary of ConocoPhillips for $1.05 billion cash.

The assets to be purchased include additional interests in Denbury’s existing operated fields in Cedar Creek anticline along with operating interests in other fields within the structure. Cedar Creek anticline is 110 miles north of Denbury's Bell Creek field, which Denbury plans to start flooding with carbon dioxide in the first half of 2013 using the recently completed Greencore pipeline to deliver CO2 from central Wyoming.

Denbury is designing a CO2 development plan for Cedar Creek that will include the properties being acquired from ConocoPhillips. The company estimates a CO2 flood of the to-be-acquired properties could recover 60-80 million bbl of oil.

All total, including the assets to be acquired, Denbury estimates a CO2 flood of its Cedar Creek assets could recover 260-280 million bbl of oil.