Denbury Resources Inc. says that almost all production has returned to normal following Hurricanes Gustav and Ike. While there was minimal physical damage to Company facilities and properties as a result of the two hurricanes, the Company did shut-in and defer some production as a result of each of the storms. The Company estimates that approximately 1% of the Company's production remains shut-in pending repairs and restoration of electrical service.

During Hurricane Gustav, the Company temporarily lost electrical power at most of its Phase I tertiary oil floods in Southwest Mississippi and as a result of Hurricane Ike, over half of the Company's Barnett Shale production was temporarily shut-in as refineries on the Gulf Coast were unable to accept natural gas liquids production from the Barnett. The Company estimates that the total tertiary deferred oil production as a result of the two hurricanes is between 45,000 and 55,000 Bbls (approximately 543 Bbls/d for third quarter estimated daily production using the mid-point of the estimate) and that the total deferred Company production will total between 110,000 and 120,000 BOEs (approximately 1,250 BOE/d for third quarter estimated daily production using the mid-point of the estimate).

As a result of these temporary reductions in production, the Company preliminarily estimates that its 2008 third quarter total Company production will be between 45,500 and 46,500 BOE/d and that its tertiary oil production for the third quarter will be between 19,250 and 20,000 Bbls/d.

Tags: Denbury Resources Inc.