DALLAS — Denbury Resources Inc. has closed the previously announced $900-million sale of oil and natural gas assets (primarily located in the Permian Basin, the Mid-continent area, and the East Texas Basin) to Quantum Resources Management, LLC, a privately held Company.
To date, the company has received net proceeds of approximately $889 million (including a prior $45 million deposit) and anticipates receiving an additional $5.5 million within the next few weeks relating to exercised preferential rights. The net proceeds of the sale will be used to repay approximately $830 million of the $869 million in bank debt currently outstanding on the Company’s $1.6 billion revolving credit facility.
Denbury also announced that in conjunction with the sale of these properties, its banks performed a re-determination of the company’s borrowing base under its $1.6-billion revolving credit facility and left the borrowing base in that amount unchanged.
Denbury is the largest oil and natural gas operator in Mississippi and Montana, owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River and holds significant operating acreage in the Rockies and Gulf Coast.