Denbury Resources Inc. is evaluating strategic alternatives for its Louisiana assets, other than Louisiana oil properties with potential for tertiary recovery operations.

Alternatives may include a sale or a swap of these assets for oil fields with tertiary recovery potential. This review is being conducted as part of Denbury's ongoing focus on its core tertiary recovery operations. Any sale or swap of these assets would eliminate, or substantially reduce, the Company's higher-risk profile drilling activities in this region, although the Company will continue to be active in Louisiana with its tertiary recovery operations, including the potential acquisition of additional future tertiary recovery projects.

Production from the Company's Louisiana properties that are currently being evaluated averaged approximately 29.1 MMcfe/d (83% natural gas) during the first quarter of 2007 and had proved reserves as of December 31, 2006 of approximately 45.2 Bcfe. No buyer or transaction has been identified to date, and if the price and terms of any potential transaction are not acceptable to Denbury, the Company would likely reconsider any divestiture. The Company expects this evaluation to be completed during 2007.

"Our long-term plan is to concentrate our investment and management focus on our tertiary operations where we have lower risk, greater predictability, virtually no competition in our areas of operation and higher profitability," Gareth Roberts, Denbury President and CEO said. "We continue to expand our CO2 operations and have recently committed to purchase another man-made source of CO2 from a planned gasification project in the Beaumont, Texas area, which if completed will provide us with CO2 under a structure and terms similar to those of the previously announced Faustina gasification project near Donaldsonville, Louisiana. We continue to work on the route for the proposed Green Line from Louisiana to Hastings Field near Houston and have secured right-of-ways for approximately 100 miles of this route with the purchase of an existing line. Even though this existing pipeline will be replaced, it should decrease the time required to acquire right-of-ways. Our program is working and we continue to be enthusiastic about the future."