Denbury to spend $173M next year

Petroleum News

Exploration and production independent Denbury Resources plans to spend about $173 million on development and exploration in 2004, the company said Dec. 11, adding that it expects to produce between 34,000 and 35,000 barrels per day of oil equivalent, about the same daily average as this year.

Denbury said about 45 percent of its budget next year will be spent on projects related to its tertiary recovery (C02) projects in western Mississippi. About 20 percent of the budget is earmarked for offshore Gulf of Mexico, about 15 percent each to the company’s remaining two core areas of onshore Louisiana and eastern Mississippi and about 5 percent to the Barnett Shale. About 15 percent will go to exploratory projects, primarily natural gas targets onshore Louisiana and offshore Gulf, the company said.

Denbury said production from its C02 projects is expected to increase about 50 percent, from an anticipated 2003 average of about 4,700 barrels per day of oil equivalent to a projected 2004 barrels per day of equivalent of about 7,100 barrels per day of equivalent.