Reuters: Mergers News: UPDATE 1-Denbury to buy Texas oil field for $360 mln

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UPDATE 1-Denbury to buy Texas oil field for $360 mln May 1st 2012, 13:02 Tue May 1, 2012 9:02am EDT May 1 (Reuters) - Denbury Resources Inc said it would buy an oil field in Texas from a private seller for $360 million to add to its development projects in the U.S. Gulf Coast region. The acquisition includes a nearly 100 percent working interest and 84.7 percent revenue interest in the Thompson Field in Fort Bend County, Denbury said. The field is producing about 2,200 barrels of oil per day and reserves are estimated at about 17 million barrels of oil. The undisclosed seller will receive a 5 percent net revenue interest when oil production exceeds 3,000 barrels per day. Denbury, which focuses on developing depleted reservoirs by pumping carbon dioxide to enhance oil recovery, will fund the purchase with about $213 million of cash on hand and borrowings under its revolving credit facility. Denbury shares, which have fallen about 16 percent so far this year, closed at $19.04 on Monday on the New York Stock Exchange.

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