SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) October 16, 2000
DENBURY RESOURCES INC.
(Exact name of Registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation or organization)
1-12935 75-2815171
(Commission File Number) (I.R.S. Employer
Identification No.)
5100 Tennyson Parkway
Suite 3000
Plano, Texas 75024
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (972)673-2000
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Item 2. Acquisition or Disposition of Assets.
On October 16, 2000, Denbury Resources Inc.(the "Company" or "Denbury")
closed on an acquisition from Manti Resources, Inc., for $29 million for oil and
natural gas interests in Thornwell Field located in southwest Louisiana. On
October 25, 2000, the Company signed a purchase and sale agreement with Enron
North America for $28 million to purchase additional interests in the same
field. On October 23, 2000, the Company signed a purchase and sale agreement
with Manti Resources, Inc. for $9.5 million to purchase oil and natural gas
interests in the Iberia and Port Barre Fields, also in southwest Louisiana.
The three acquisitions are for a total consideration of $66.5 million. The
transactions consist of 42 producing wells located in the Thornwell, Iberia and
Port Barre Fields. Approximately 92% of the wells will be operated by Denbury.
All acquisitions are expected to be completed by the end of November, subject to
normal closing conditions. Denbury will use its existing credit facility to fund
the acquisitions.
Approximately 80% of the current daily production from the acquired
properties is natural gas. Based on preliminary estimates by the Company, these
acquisitions are expected to add net proved reserves of approximately 30 Bcfe (5
MMBOE) as of August 1, 2000. The Company has purchased a price floor (i.e. put)
for $2.5 million covering 100% of the forecasted proven natural gas production
on the acquisitions for 2001 and 2002. The price floor varies by quarter but
ranges from $2.94 to $4.25 for 2001 and from $2.93 to $3.65 for 2002, with a
weighted average price of $3.51 for 2001 and $3.23 for 2002.
This Form 8-K, other than historical financial information, contains
forward looking statements that involve risks and uncertainties including
expected reserve quantities, production levels, financial results and other
risks and uncertainties detailed in the Company's filings with the Securities
and Exchange Commission, including Denbury's reports on Form 10-K and 10-Q.
These reports are incorporated by this reference as though fully set forth
herein. These statements are based on engineering, geological and operating
assumptions that management believes are reasonable 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.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Denbury Resources Inc.
(Registrant)
By: /s/ Phil Rykhoek
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Phil Rykhoek
Chief Financial Officer
Date: october 27, 2000
