Denbury Resources Inc. says that its total proved oil and natural gas reserves as of December 31, 2007 were 194.7 million barrels of oil equivalent (MMBOE), consisting of 135.0 million barrels (MMBbls) of crude oil, condensate and natural gas liquids and 358.6 billion cubic feet ("Bcf") of natural gas.

This year-end proved reserves total represents a 12% increase over Denbury's year-end proved reserve quantity estimates a year earlier. The Company also announced that its proved carbon dioxide ("CO2") reserves were 5.6 trillion cubic feet ("Tcf") at year-end 2007, a slight increase over its 5.5 Tcf of proved CO2 reserve quantities at December 31, 2006. The independent reservoir engineering firm of DeGolyer and MacNaughton prepared Denbury's year-end reserve report, including its proved CO2 reserve quantities, for the seventh consecutive year. Approximately 69% of Denbury's year-end 2007 proved reserves are categorized as proved developed and approximately 69% are oil reserves.

Proved Reserve and Analysis

Denbury added 40.2 MMBOE of proved reserves during 2007 (before netting out 2007 production and property sales) replacing approximately 250% of its 2007 estimated production, virtually all from internal organic growth. The most significant reserve additions during 2007 were approximately 12.7 MMBbls added in the Company's tertiary oil operations and approximately 137.0 Bcfe (22.8 MMBOE) in the Barnett Shale area near Fort Worth, Texas, both before netting out 2007 production. The Company's tertiary-related oil reserves added during the year were primarily at Soso and Martinville Fields, two Phase II fields in Eastern Mississippi which had significant production response during 2007. The Company sold approximately 3.7 MMBOE of proved reserves during 2007 (based on December 31, 2006 reserve quantities) related to its Louisiana natural gas properties.

Preliminary estimates of just completed 2007 capital spending include approximately $615 million for oil and natural gas development and exploration activities, approximately $50 million expended on acquisitions, and approximately $170 million spent on Denbury's CO2 producing wells and facilities. The Company received approximately $145 million in net proceeds from the sale of properties during 2007, primarily related to the partial closing last month of the sale of the Company's Louisiana natural gas properties, with the remaining portion of that sale (approximately 30%) expected to close within the next week or two. These capital expenditures include approximately $145 million incurred on unproved properties, primarily related to the portion of acquisition expenditures allocated to future tertiary floods and to capital expenditures on new tertiary properties for which there were not proven reserves as of December 31, 2007. The preliminary estimated net change in the Company's unevaluated properties for 2007 is a net increase of approximately $75 million. In addition, the Company spent $7.5 million in 2007 as partial payment for an option to acquire Hastings Field, which is not included in the preceding capital expenditure amounts.

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