Denbury Resources (DNR) to Acquire Hastings Field from Venoco (VQ)
Denbury Resources Inc. (NYSE: DNR), announced today that it has exercised its option to purchase from a subsidiary of Venoco, Inc. (NYSE: VQ) the Hastings Field near Houston, Texas, a potential tertiary oil field to be supplied by the Green Pipeline which is underway.
The purchase price is to be determined by mutual agreement between the two companies, or failing agreement by December 1, 2008, by following a prescribed contractual formula based upon the present discounted value of the field's proved reserves as determined by the independent engineering firm of DeGolyer and MacNaughton, using year-end 2008 strip prices.
The acquisition will be effective January 1, 2009 and is expected to close in early February 2009. Venoco has agreed to extend the deadlines for capital expenditures, commencement of CO2 injections and certain other contractual requirements by one year in consideration of Denbury exercising the option in 2008.
Denbury Resources, Inc. engages in the acquisition, development, operation, and exploration of oil and natural gas properties in the Gulf Coast region of the United States, primarily in Louisiana, Mississippi, Alabama, and Texas.
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