Production from the interest being sold averaged about 45.7 million cubic feet per day of natural gas equivalent during 2008. It represented 16% of Denbury's production that year and 18% of its total proven reserves at the end of the year. Proceeds from the sale will initially be used to repay the company's outstanding bank debt.
"We plan to use these funds to increase our 2010 Tertiary-related spending beyond what we could accomplish using only cash flow," said chief executive of Denbury Gareth Roberts.
