Denbury Paying $71.5M For Linn’s Wyoming CO2 Assets
http://www.naturalgasintel.com/articles/110622-denbury-paying-715m-for-linns-wyoming-co2-assetsMay 30, 2017
One week after selling one set of assets, Linn Energy Inc. racked up a second sale, this time agreeing to shed its interest in Wyoming's Salt Creek Field to Denbury Resources Inc., a carbon dioxide (CO2) enhanced oil recovery (EOR) specialist, for $71.5 million.
Houston-based Linn agreed to sell its 23% nonoperated working interest in about 5,000 net acres, which had net production of 2,000 boe/d in 1Q2017. At the end of the first quarter, the acreage held proved developed reserves of about 9 million boe with a proved developed value of $54 million based on the estimated present revenue, net estimated direct expenses, discounted at an annual discount rate of 10%, or PV-10.
"Salt Creek is a great fit for Denbury, building scale in the heart of our core Rockies region, with production growing and many opportunities for future expansion in this large and long-lived field," said Denbury COO Chris Kendall. "The acquisition builds on our goal of resuming production growth by 2018, and its attractive price should improve our credit metrics in the near term, with the opportunity for additional enhancements in the future."...
...Denbury, which is considered a leading EOR expert, is focused on CO2 floods along the Gulf Coast and in the Rockies. It is currently partnering with Australia's Elk Petroleum Ltd. to develop the Grieve CO2 EOR project in Wyoming.....