Denbury Resources Restores 90% of Production Impacted by Tropical Storm Harvey
September 06 2017 - 6:30AM
Denbury Resources Inc. (NYSE:DNR) (“Denbury” or the “Company”)
today announced that over the last several days, production has
been restarted at five of its six fields impacted by Tropical Storm
Harvey. As of today, the Company estimates that approximately
90% of the 16,000 barrels of oil equivalent (“BOE”) per day of net
production shut-in as of August 27 has been returned to production,
and the Company has not identified any significant damage at these
impacted fields. The only field that remains shut-in is
Thompson Field, which had net production just prior to the storm of
approximately 1,000 BOE per day. Production at Thompson Field
is expected to return to full capacity over the next eight weeks,
as flooding in that area subsides and personnel are able to access
the field.
The primary impacts of the storm to date include
minimal cleanup costs and temporarily shut-in production. The
Company does not expect any insurance recovery related to the
storm. The impact of Tropical Storm Harvey on third quarter’s
production is estimated to be 2,000 – 2,200 BOE per day, and
full-year production is still expected to be within our previously
updated guidance of 60,000 – 62,000 BOE per day.
Christian S. Kendall, Denbury’s President and
CEO commented, “Our thoughts and prayers are with all affected by
this significant storm, including several Denbury families.
Although the impact of the storm will be ongoing in the
Houston area for quite some time, its effect on our operations was
significantly limited due to our pre-storm preparations and the
resilience of Denbury’s workforce. Above all, I am pleased
that all our workers and their families remained safe
throughout.”
Denbury is an independent oil and natural gas
company with operations focused in two key operating areas: the
Gulf Coast and Rocky Mountain regions. The Company’s goal is
to increase the value of its properties through a combination of
exploitation, drilling and proven engineering extraction practices,
with the most significant emphasis relating to CO2 enhanced oil
recovery operations. For more information about Denbury,
please visit www.denbury.com.
This press release, other than historical financial information,
contains forward-looking statements that involve risks and
uncertainties including estimated production effects of Tropical
Storm Harvey. These statements are based on currently
available information; however, management’s assumptions and the
Company’s future performance are both subject to a wide range of
business risks, and there is no assurance that these goals and
projections can or will be met. Actual results may vary
materially. In addition, any forward-looking statements
represent the Company’s estimates only as of today and should not
be relied upon as representing its estimates as of any future date.
Denbury assumes no obligation to update its forward-looking
statements.
DENBURY CONTACTS:
Mark C. Allen, Senior Vice President and Chief Financial Officer, 972.673.2000
John Mayer, Investor Relations, 972.673.2383
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