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

Denbury Resources Inc. 2009 Annual Report 17Field Summaries — Production and Proved ReservesDenbury operates in five primary areas: Eastern Mississippi, Western Mississippi, Texas, Alabama and Louisiana.Our 19 largest fields (listed below) constitute approximately 97% of our total proved reserves on a BOE basis, and 96%of our total proved reserves on a PV-10 Value basis. Within these 19 fields, we own a weighted average 95% workinginterest and operate all of these fields. The concentration of value in a relatively small number of fields allows us tobenefit substantially from any operating cost reductions or production enhancements we achieve, and allows us toeffectively manage the properties from our four primary field offices located in Laurel, Mississippi; Jackson, Mississippi;Little Creek, Mississippi; and Alvin, Texas.2009 AverageProved Reserves as of December 31, 2009 (1)Daily ProductionOil Natural Gas BOE PV-10 Value (2) Oil Natural Gas Avg(MBbls) (MMcf) MBOEs % of total (000’s) (Bbls/d) (Mcf/d) NRITertiary Oil FieldsTinsley (3) 33,910 — 33,910 16.3% $ 583,973 3,328 — 79.9%Heidelberg 25,433 — 25,433 12.3% 410,680 651 — 85.6%Brookhaven 15,972 — 15,972 7.7% 329,918 3,416 — 81.3%McComb Area 12,518 — 12,518 6.0% 197,465 2,391 — 79.0%Cranfield 10,778 — 10,778 5.2% 189,935 448 — 77.9%Eucutta 10,187 — 10,187 4.9% 166,240 3,985 — 83.5%Mallalieu 9,984 — 9,984 4.8% 181,118 4,107 — 79.0%Soso 8,028 — 8,028 3.9% 119,425 2,834 — 77.3%Lockhart Crossing 3,705 — 3,705 1.8% 57,381 804 — 58.2%Little Creek & Lazy Creek 2,999 — 2,999 1.4% 42,149 1,502 — 83.2%Martinville 1,005 — 1,005 0.5% 8,193 877 — 77.6%Total Tertiary Oil Fields 134,519 — 134,519 64.8% 2,286,477 24,343 — 79.3%MississippiHeidelberg 14,079 54,964 23,240 11.2% 203,203 3,605 14,768 75.7%Sharon 16 24,512 4,101 2.0% 27,878 11 7,848 72.7%Eucutta 1,308 — 1,308 0.6% 24,546 309 — 41.6%Summerland 1,255 — 1,255 0.6% 14,780 316 — 74.4%S. Cypress Creek 910 61 920 0.4% 15,454 150 10 83.1%Other Mississippi 4,934 1,882 5,248 2.5% 85,733 1,591 1,108 16.8%Total Mississippi 22,502 81,419 36,072 17.3% 371,594 5,982 23,734 41.1%TexasConroe 18,132 2,319 18,519 8.9% 210,163 117 123 80.4%Hastings 8,862 — 8,862 4.3% 119,336 1,954 9 79.1%Other Texas 224 746 348 0.2% 3,547 3,051 42,057 67.6%Total Texas 27,218 3,065 27,729 13.4% 333,046 5,122 42,189 65.8%AlabamaCitronelle 8,074 — 8,074 3.9% 64,175 1,108 — 63.4%Alabama and other 115 87 130 0.1% 2,115 5 52 2.1%Total Alabama and Other 8,189 87 8,204 4.0% 66,290 1,113 52 52.0%LouisianaOnshore Louisiana 451 3,404 1,018 0.5% 18,052 391 2,111 29.3%Company Total 192,879 87,975 207,542 100% $ 3,075,459 36,951 68,086 64.6%(1) The reserves were prepared in accordance with the guidelines of FASC topic 932 “Extractive Industries – Oil and Gas” using the average first-day-of-the-monthprices for each month during 2009 which for NYMEX oil was a price of $61.18 per barrel adjusted to prices received by field and for natural gas was a Henry Hub cashprice of $3.87 per MMBtu, also adjusted to prices received by field.(2) PV-10 Value is a non-GAAP measure and is different from the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”) in that PV-10Value is a pre-tax number and the Standardized Measure is an after-tax number. The information used to calculate PV-10 Value is derived directly from datadetermined in accordance with FASC topic 932. The Standardized Measure was $2.5 billion at December 31, 2009. A comparison of PV-10 to the StandardizedMeasure is included in the table on page 24 as well as further information regarding our use of this non-GAAP measure.(3) Tinsley Field, which had initial tertiary oil production response from CO 2 injections during the first quarter of 2008, had an average sales price per unit of oil of$63.09 per barrel in 2009 and $96.36 per barrel in 2008. Tinsley Field average production cost (excluding ad valorem and severance taxes) was $18.93 per barrel in2009 and $33.01 per barrel in 2008.Form 10-K Part I