Courtesy of Benzinga.
nbury Resources Inc. (NYSE: DNR) today announced preliminary first quarter 2012 production and realized oil prices, which management will discuss in today’s presentation at the Independent Petroleum Association of America’s Oil & Gas Investment Symposium in New York. The full presentation, which includes detailed information on Denbury’s estimated first quarter 2012 production, will be available starting today on the Company’s website at www.denbury.com. Denbury’s preliminary average first quarter 2012 production is estimated to be 71,532 barrels of oil equivalent per day (“BOE/d”), an 8% increase from the fourth quarter of 2011 levels after adjusting both periods for the 2012 property sales detailed below, with 93% of this production being oil.
First quarter production estimates include 33,257 barrels per day (“Bbls/d”) of tertiary oil production, a 7% increase from that in the fourth quarter of 2011, and 15,114 BOE/d of Bakken production, a 29% increase from fourth quarter of 2011 levels. Sequential growth in tertiary oil production was primarily driven by new tertiary floods at the Oyster Bayou and Hastings fields, and a sooner than anticipated production response at Tinsley Field. By field, tertiary oil production estimates for the first quarter of 2012 are 877 Bbls/d at Oyster Bayou, 618 Bbls/d at Hastings and 7,297 Bbls/d at Tinsley. Bakken production growth was the result of the Company’s drilling program and favorable winter operating conditions in that area. Updated information on individual Bakken well performance is provided in today’s presentation.
Included in the preliminary first quarter 2012 production volumes are 1,759 BOE/d from non-core assets Denbury has divested to date in 2012. Excluding the contribution from these non-core assets, first quarter 2012 production would have been 2% lower at 69,773 BOE/d. As a result of these non-core asset sales, Denbury has revised its estimate of 2012 production by 2% to 68,625-to-73,625 BOE/d from 70,250-to-75,250 BOE/d.
Denbury also announced that its preliminary average realized oil price, excluding derivative settlements, was $102.52 per barrel in the first quarter of 2012, down slightly from $103.08 per barrel in the fourth quarter of 2011. First quarter 2012 realized oil prices were $0.37 per barrel less than the average NYMEX oil price in the quarter, down from the $9.14 premium to NYMEX realized in the fourth quarter of 2011. The decrease in the differential was the result of a decline in the Light Louisiana Sweet index premium and a lower price received for Bakken oil production due to wider than normal NYMEX differentials. Including derivative settlements, Denbury’s preliminary average realized oil price was $101.16 per barrel in the first quarter of 2012, down from $102.86 per barrel in the fourth quarter of 2011.
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