![]() Denbury will gain ownership and control of the Jackson Dome CO2 source in Mississippi and CO2 sequestration contracts secured with anthropogenic sources in the Gulf Coast, the Midwest and Rocky Mountains.Įncore also has one of the largest leasehold positions in North Dakota's Bakken oil shale play with over 300,000 net acres and 84 million barrels of oil equivalent upside potential. The Department of Energy estimates these three new areas, located in Montana, Wyoming and along the borders of North and South Dakota could yield 1.3 to 3.2 billion additional barrels of oil through enhanced recovery. The deal, he said, is one of the larger acquisitions related to CO2 floods and brings to Denbury three large properties Encore had that are available for EOR projects: Bell Creek, Cedar Creek Anticline and Elk Basin. "Whether it's Encore Energy Partners or Denbury, we will have a position in the Permian Basin," Evans said. ![]() He quickly added that part of the deal includes the minority interest in Encore Energy Partners LP, which has Permian Basin assets. He added that, when the merger of the two companies is complete, expected in the first quarter of this year, "we will sell $500 million of assets from the combined companies, and more than likely some of those assets will be from the Permian Basin." Speaking later by phone from his Plano office, Evans noted that most of the company's CO2 projects are in the Rockies while the vast majority of its Permian Basin assets are natural gas assets. He praised Encore's portfolio of mature legacy oil assets, which will allow the combined company to more than double its upside potential using enhanced oil recovery methods and enhance Denbury's position as a world-class CO2 tertiary recovery company. The combined companies will have over 500 million barrels of oil equivalent that could potentially be recovered with CO2 floods. "We see similar EOR characteristics in Encore's Rocky Mountain oil fields," Evans told the conference, adding that Encore's holdings will help Denbury establish new core EOR areas in the Rockies. Tracy Evans, Denbury's president and chief operating officer, addressed the recent CO2 Conference in Midland to discuss the pending merger and Encore will offer his company new opportunities for enhanced oil recovery utilizing carbon dioxide (CO2) flooding. Denbury Resources will significantly expand its footprint across the Gulf Coast and Rocky Mountains with the pending $4.5 billion purchase of Encore Acquisition Company.
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