Interactive 2009 Annual Report (PDF 7.56 MB) - Denbury Resources ...

Denbury Resources Inc. 2009 Annual Report 3Glossary and Selected AbbreviationsBblBbls/dOne stock tank barrel, of 42 U.S. gallons liquid volume, used herein in reference to crude oil or otherliquid hydrocarbons.Barrels of oil produced per day.Bcf One billion cubic feet of natural gas or CO 2 .BcfeBOEBOE/dBtuCO 2One billion cubic feet of natural gas equivalent using the ratio of one barrel of crude oil, condensateor natural gas liquids to 6 Mcf of natural gas.One barrel of oil equivalent using the ratio of one barrel of crude oil, condensate or natural gasliquids to 6 Mcf of natural gas.BOEs produced per day.British thermal unit, which is the heat required to raise the temperature of a one-pound mass ofwater from 58.5 to 59.5 degrees Fahrenheit.Carbon dioxide.Finding and Development Cost The average cost per BOE to find and develop proved reserves during a given period. It is calculatedby dividing costs, which includes the total acquisition, exploration and development costs incurredduring the period plus future development and abandonment costs related to the specified propertyor group of properties, by the sum of (i) the change in total proved reserves during the period plus(ii) total production during that period.MBblsMBOEMbtuOne thousand barrels of crude oil or other liquid hydrocarbons.One thousand BOEs.One thousand Btus.Mcf One thousand cubic feet of natural gas or CO 2 .Mcf/dMcfeMcfe/dMMBblsMMBOEMMBtuOne thousand cubic feet of natural gas or CO 2 produced per day.One thousand cubic feet of natural gas equivalent using the ratio of one barrel of crude oil,condensate or natural gas liquids to 6 Mcf of natural gas.Mcfes produced per day.One million barrels of crude oil or other liquid hydrocarbons.One million BOEs.One million Btus.MMcf One million cubic feet of natural gas or CO 2 .MMcf/dMMcfeMMcfe/dPV-10 ValueProved Developed Reserves*Proved Reserves*One million cubic feet of natural gas or CO 2 per day.One thousand Mcfe.MMcfes produced per day.When used with respect to oil and natural gas reserves, PV-10 Value means the estimated futuregross revenue to be generated from the production of proved reserves, net of estimated futureproduction, development and abandonment costs, and before income taxes, discounted to apresent value using an annual discount rate of 10%. PV-10 Values calculated as of December 31,2009 were prepared using an average price equal to the unweighted arithmetic average ofhydrocarbon prices on the first day of each month within a 12-month period ended December 31,2009. PV-10 Values calculated prior to December 31, 2009 were prepared using prices and costs ineffect at the determination date. PV-10 Value is a non-GAAP measure and its use is furtherdiscussed in footnote 4 to the table on page 24.Reserves that can be expected to be recovered through existing wells with existing equipment andoperating methods.The estimated quantities of crude oil, natural gas and natural gas liquids that geological andengineering data demonstrate with reasonable certainty to be recoverable in future years fromknown reservoirs under existing economic and operating conditions.Proved Undeveloped Reserves* Reserves that are expected to be recovered from new wells on undrilled acreage or from existingwells where a relatively major expenditure is required.Tcf One trillion cubic feet of natural gas or CO 2 .* This definition is an abbreviated version of the complete definition as defined by the SEC in Rule 4-10(a) of Regulation S-X. For the complete definition see:http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?type=simple:c=ecfr:cc=ecfr:sid=9cb6302b536b7a2f8af3f13fc182642a:region=DIV1:q1=regulation%20s-x:rgn=div7:view=text:idno=17:node=17%3A2.0.1.1.8.0.21