Denbury Resources Inc. has entered into an agreement with Anadarko Petroleum to acquire their Seabreeze complex, which is composed of five significant fields and a few smaller fields, in the general area of Houston, Texas, for $42 million.

The acquisition is expected to close during March and is subject to satisfactory completion of normal and customary due diligence and closing conditions. These fields are currently producing approximately 750 BOE/d and have estimated current conventional proved reserves of between 500 MBOE and 750 MBOE. Certain of these fields are potential CO2 tertiary flood candidates. The Company has preliminarily estimated that these fields have net reserve potential of up to 30 to 40 MMBOE from tertiary flood operations.

Tertiary flooding at these fields is not expected to begin until 2010 or 2011, following completion of the proposed 280 to 300 mile CO2 pipeline from Louisiana to Hastings Field, near Houston, Texas. Based on updated, but still preliminary estimates, this CO2 pipeline is now expected to cost between $450 million and $650 million, although this cost could vary significantly depending on the ultimate size of the pipeline, its pressure rating, its specific route and other variables, all of which are unknown at this time.

These cost estimates for the pipeline are higher than prior estimates, largely due to an anticipated increase in the size of the pipe in order to transport larger volumes of CO2 based on the Company's anticipated needs.