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All Oil Companies Are Not Alike.


                      Analyst Day Presentation
NYSE: DNR                          November 2012
About Forward Looking Statements

The data contained in this presentation that are not historical facts are forward-looking statements that involve a number of risks and
uncertainties. Such statements may relate to, among other things, forecasted capital expenditures, drilling activity, acquisition and
dispositions plans, development activities, timing of CO2 injections and initial production response in tertiary flooding projects, estimated
costs, production rates and volumes or forecasts thereof, hydrocarbon reserve quantities and values, CO 2 reserves, helium reserves,
potential reserves from tertiary operations, future hydrocarbon prices or assumptions, liquidity, cash flows, availability of capital, borrowing
capacity, finding costs, rates of return, overall economics, net asset values, potential reserves and anticipated production growth rates in
our CO2 models, 2012, 2013 and future production and expenditure estimates, and availability and cost of equipment and services.
These forward-looking statements are generally accompanied by words such as “estimated”, “preliminary”, “projected”, “potential”,
“anticipated”, “forecasted” or other words that convey the uncertainty of future events or outcomes. These statements are based on
management’s current plans and assumptions and are subject to a number of risks and uncertainties as further outlined in our most
recent Form 10-K and Form 10-Q filed with the SEC. Therefore, the actual results may differ materially from the expectations, estimates
or assumptions expressed in or implied by any forward-looking statement made by or on behalf of the Company.


Cautionary Note to U.S. Investors – Current SEC rules regarding oil and gas reserve information allow oil and gas companies to disclose
in filings with the SEC not only proved reserves, but also probable and possible reserves that meet the SEC’s definitions of such terms.
We disclose only proved reserves in our filings with the SEC. Denbury’s proved reserves as of December 31, 2011 were estimated by
DeGolyer & MacNaughton, an independent petroleum engineering firm. In this presentation, we make reference to probable and possible
reserves, some of which have been prepared by our independent engineers and some of which have been prepared by Denbury’s internal
staff of engineers. In this presentation, we also refer to estimates of original oil in place, resource “potential” or other descriptions of
volumes potentially recoverable, which in addition to reserves generally classifiable as probable and possible (2P and 3P reserves),
include estimates of reserves that do not rise to the standards for possible reserves, and which SEC guidelines strictly prohibit us from
including in filings with the SEC. These estimates, as well as the estimates of probable and possible reserves, are by their nature more
speculative than estimates of proved reserves and are subject to greater uncertainties, and accordingly the likelihood of recovering those
reserves is subject to substantially greater risk.




                                                                                                                                                   2
Corporate Overview
Proven Leadership Team




                                                                                Promoted                                                Promoted

                   Phil Rykhoek                         Mark Allen          Craig McPherson                Bob Cornelius               Charlie Gibson
                 President & CEO                Sr. VP, CFO and                  Sr. VP & COO                 Sr. VP, CO2             Sr. VP, Planning,
                                                       Treasurer                                               Operations       Technology & Bus. Dev.




                   New Hire                                                  Retiring – 1Q13                New Hire

                 Jim Matthews                           Dan Cole                  Greg Dover                      Matt Elmer           John Filiatrault
           VP, General Counsel              VP, Marketing and                   VP, Operations            VP, West Region            VP, CO2 Supply &
                 and Secretary          Business Development                        Excellence                                      Pipeline Operations




                                                                                                                                                           New Hire


    Steve McLaurin                      Jeff Marcel                  Alan Rhoades              Barry Schneider             Whitney Shelley                    Phil Webb
         VP & Chief            VP, Drilling and EOR                   VP & Chief               VP, North Region               VP and Chief                VP, East Region
   Information Officer        Facilities Engineering/            Accounting Officer                                        Human Relations
                                         Construction                                                                               Officer



                                                                                                                                                                            4
A Different Kind of Oil Company

                               “We Bring Old Oil Fields Back to Life”
         Unique                   • We acquire mature oil fields and recover oil using carbon dioxide (CO2)
         Strategy                 • Requires large sources of CO2 near oil fields - We have both!

         Value                    • Highest operating margins and capital efficiency in peer group(1)
                                  • Within the next 5 years we anticipate our free cash flow growing while our
        Creation                    CapEx is declining
                                  • More than 1 billion barrels of potential oil reserves
         Proven                   • CO2 EOR is one of the most efficient tertiary oil recovery methods
         Process                  • 30% compound annual growth rate (CAGR) in our EOR production since 1999
                                  • We have produced nearly 70 million barrels of oil from CO2 EOR to date
      Repeatable                  • We anticipate a decade of low teens EOR production growth from existing fields
       Growth                     • Relatively lower-risk – We develop mature conventional oil fields

      Competitive                 • Strategic CO2 supply and own or operate over 1,000 miles of CO2 pipeline
      Advantage                   • Large inventory of mature oil fields well-suited for CO2 EOR
                                  • Top talent and technology
                                  • Ability to use and store CO2 captured from industrial facilities results in net
      Eco-friendly                  carbon reduction
                                  • By developing existing oil fields, we are not disturbing new habitats

(1)   Please reference slides 16 and 17 for more information

                                                                                                                      5
Denbury at a Glance

                                                                                                                          Pro forma(1)
  Total 3P Reserves (12/31/11)                                                        ~1.3 BBOE                           ~1.1 BBOE
  % Oil Production (3Q12)                                                                   93%                              ~93%(2)
  Total Net Debt (9/30/12)                                                            $3.1 billion                       ~$2.0 billion
  Total Daily Production – BOE/d (3Q12)                                                   72,776                           ~59,725(2)
  Proved PV-10 (12/31/11) $96.19 NYMEX Oil Price                                     $10.6 billion                    ~$10.6 billion(3)
  Market Cap (11/1/12)                                                               ~$6.1 billion
  CO2 3P Reserves (12/31/11)                                                             ~16 Tcf
  CO2 Pipelines Controlled & Under Construction                                     ~1,000 miles
  Credit Facility Availability (9/30/12)                                            ~$975 million
(1) Pro forma for recently announced Bakken sale and exchange, includes Hartzog Draw and Webster.
(2) Pro forma production adjusts for production sold and includes roughly 3,600 BOE/d from recently announced acquisition of Hartzog Draw and Webster.
(3) PV-10 value at 12/31/11 pro forma for recently announced Bakken sale, excluding Bakken at 12/31/11 and including previously disclosed
    PV-10 value for Oyster Bayou and Hastings reserves at 6/30/2012 using a $95.67 NYMEX oil price for Oyster Bayou and Hastings. Does not include
    PV-10 value for Thompson, Hartzog Draw or Webster, nor does it exclude net cash flows from the first six months of 2012.

                                                                                                                                                     6
What is CO2 EOR & How Much Oil Does It Recover?


             Secure CO2 Supply                                 Transport via Pipeline           Inject into Oilfield




                                CO2 EOR Delivers Almost as Much Production as
                                     Primary and Secondary Recovery(1)
                           Tertiary
                          Recovery                                                        Remaining
                          (CO2 EOR)                                                          Oil
                              ~17%



                            Secondary
                            Recovery
                           (waterfloods)
                                                                                     Primary
                                 ~18%
                                                                                    Recovery
(1) Recovery of Original Oil in Place based on history at Little Creek Field.           ~20%
                                                                                                                       7
2012 Accomplishments

Successful Execution
●   Total and tertiary production expected to be at the upper end of estimated ranges
●   Adjusted cash flow from operations expected to be at the upper end of estimated range
●   Capital expenditures projected to be in-line with budgeted levels
●   Acquired Thompson Field in June 2012 for $366 million
●   Divested non-core assets for combined net proceeds of $294 million

Start-up of Hastings and Oyster Bayou CO2 floods
● Oil production from the fields exceeded 4,300 barrels per day in 3Q12
● Booked combined tertiary reserves of nearly 60 million barrels

Transformational Bakken transaction
●   Sharpens our focus on our highly profitable CO2 EOR strategy
●   Adds to our large inventory of CO2 EOR projects and extends total tertiary peak production
●   Further strengthens liquidity
●   Adds to our existing CO2 supply in the Rockies


                                                                                                 8
Bakken Sale and Asset Exchange

Transaction Terms
● Sell/Exchange Bakken assets for:
   ● $1.6 billion in cash proceeds (before closing adjustments and taxes)
   ● Operating interest in Webster Field (SE Texas)
   ● Operating interest in Hartzog Draw Field (NE Wyoming)
● Expected to close around the end of November, with a 7/1/2012 effective date
● Separately, we have agreed in principle to either purchase incremental CO2
  from XOM’s LaBarge Field or purchase an interest in the CO2 reserves from
  that field

● The purchase of an interest in CO2 reserves would reduce the amount of cash
  received by Denbury



                                                                                 9
Uses of Increased Liquidity

Acquisitions
● Future potential CO2 EOR floods
● Potential like-kind acquisitions, which could decrease tax leakage

Stock Repurchase Program
● Recent bank amendment permits an additional $930 million of stock
  repurchases
   o ~$270 million purchased as of 11/11/12, or nearly 5% of shares
      outstanding at 9/30/11
● As of 11/11/12, we are authorized by the Board to repurchase up to an
  additional $500 million of stock

Debt Reduction




                                                                          10
Encore Acquisition was Highly Profitable

                        Purchase price:                                                     (Billions)

                             Equity                                                             $2.8
                             Debt assumed                                                        1.0
                                                                                                         (1)
                        Total value                                                             $3.8



                        Value: (Estimated values at $96.19/Bbl – 12/31/11 SEC Pricing)
                             Proved reserves at 12/31/11                                        $1.7     (2)

                             Value received or anticipated from sold properties                 ~3.6     (3)

                             Net cash flow from 3/9/10 to 12/31/11                               0.4
                        Total                                                                 ~$5.7
                        Additional potential:
                             CO2 EOR potential                                           230 MMBOE       (4)




(1) Excludes consolidated ENP debt and minority interest in ENP.
(2) Excludes sold properties, and ENP reserves.
(3) Includes ~$2 billion of estimated value of Bakken sale.
(4) Includes CO2 EOR potential at Bell Creek and CCA.

                                                                                                               11
Our Two CO2 EOR Target Areas:
    Up to 10 Billion Barrels Recoverable with CO2 EOR

                     Denbury Rockies Region
                  261 Million 3P CO2 EOR Barrels                                        Estimated          1.3 to 3.2
                                                    MT                             ND       Billion Barrels
                                                                                                  Recoverable
                                                        Greencore
                                       ID                Pipeline                SD
                                                      Lost
                                                      Cabin
                                                                            Hartzog Draw Field
                                                              WY
                                                                                                                  IL
                                                                                                                                  IN




                                                                                                                                         KY



       Existing Denbury CO2 Pipelines
                                                                      Denbury Gulf Coast Region
       Denbury owned Fields With CO2 EOR Potential
       Existing or Proposed CO2 Source
                                                                    594 Million 3P CO2 EOR Barrels
       Owned or Contracted                                                                                             MS
                                                                                                       Delta Pipeline Jackson
       Other CO2 Sources                                                                                               Dome
                                                                                                   Sonat MS                     Free State
                                                                            Webster Field           Pipeline                     Pipeline

                                                                                                         LA
Source: DOE 2005 and 2006 reports.                                                 TX
                                                                                             Green
Note: 3P tertiary oil reserves based on year-end 12/31/11 SEC proved                        Pipeline

   reserves rolled forward through 6/30/12 for production, incremental                                                      Estimated         3.4 to 7.5
   proved reserves for Hastings and Oyster Bayou and Bakken
   development, based on a variety of recovery factors, includes recently
                                                                                                                                 Billion Barrels
   announced acquisition of Hartzog Draw and Webster fields. See slide
                                                                                                                                         Recoverable
   9 for transaction details.

                                                                                                                                                           12
Gulf Coast Region:
 Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage

          Summary(1)                                                                                                                                                                                    Tinsley
                                                                                     Delhi
                                                                                                                                                                                                      46 MMBbls
Proved                          202                                               36 MMBbls                                                      Tinsley


                                                                                                                                                                                   Jackson
Potential (2)                   392                                                                                                                                                 Dome

Produced-to-Date                 64                                                                     Delhi

                                                                                                                                                                                    Free State Pipeline
                                                                                                                                                                                                                       Davis
                                                                                                                                                                                                                  Quitman
Total MMBbls (2)          (2)   658                                                                                                                                  Martinville
                                                                                                                                                                                                          Heidelberg


                                                                                                                                                                                                Sandersville

                                                                                                        Lake                    Sonat                                              Summerland      Soso
                                                                                                                                                                                                                  Eucutta
                                                                                                                                                                                                                                      Cypress Creek
                                                                                                       St. John                                                                                                                Yellow Creek
                                                                                                                              MS Pipeline
                                                                                                                                 Brookhaven

          Houston Area                                                                                            Cranfield
                                                                                                                                         Mallalieu



 Hastings          60 - 80 MMBbls
                                                               Conroe                                                                    Olive

                                                                                                                                  Smithdale
                                                                                                                                                      Little Creek
                                                                                                                                                                                                                                             Citronelle




 Webster(3)        60 - 75 MMBbls                            130 MMBbls                                                                          McComb

                                                                                    Mature Area
 Thompson          30 - 60 MMBbls
 Other             10 - 20 MMBbls
                                                                                    178 MMBbls
                                                                                                                                                                                                     Heidelberg
       160 - 235 MMBbls                                                             Green Pipeline
                                                                                                                                                                                                     44 MMBbls
                                                                                                                              Lockhart
                                                                                                                              Crossing
                                          Conroe



                                                                                                                                         Donaldsonville




                                                                 Fig Ridge
                                                   Webster     Oyster
                                      Thompson                 Bayou




                                                 Hastings
                                                                                                                               Cumulative Production
                                                                                                                                     15 - 50 MMBoe
                                                                    Oyster Bayou                                                     50 – 100 MMBoe
                                                                                                                                     > 100 MMBoe
                                                                   20 - 30 MMBbls
                                                                                                                                     Denbury Owned Fields – Current CO2 Floods
                                                                                                                                     Denbury Owned Fields – Future CO2 Floods
                                                                                                                                     Fields Owned by Others – CO2 EOR Candidates


(1) Proved plus potential (probable and possible) tertiary oil reserves based on year-end 12/31/11 SEC proved reserves rolled forward through 6/30/12 for production,
    incremental proved reserves for Hastings and Oyster Bayou and Bakken development. Produced-to-Date is cumulative tertiary production through 6/30/12.
(2) Using mid-points of range, includes recently announced acquisition of Webster field.
(3) Acquisition announced Sept. 2012, expected to close around the end of Nov. 2012. See slide 9 for transaction details.

                                                                                                                                                                                                                                                          13
Rocky Mountain Region:
Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage

 CO2 Sources
                                                                                     Cedar Creek Anticline
                                                                                        200 MMBbls(1)
      Existing or Proposed CO2 Source
      Owned or Contracted                                                      MONTANA                                                             DGC Beulah
      Other CO2 Sources                                                                                         Cedar Creek
                                                                                                                 Anticline




                                                                                                                                                     NORTH DAKOTA
                                                                          Bell Creek
                                                                         30 MMBbls(1)

                                                                   Elk Basin




                                                                                                             Bell Creek




          Riley Ridge(2)                                                                                                                  Hartzog Draw
        415 BCF Nat Gas
                                                                                                             Greencore Pipeline
                                                                                                                 232 Miles
                                                                                                                                         20 - 30 MMBbls(3)
        12.0 BCF Helium                                                                                                                                 SOUTH DAKOTA
          2.2 TCF CO2
                                                                 Lost Cabin
                                                                   (COP)
                                        WYOMING

                                                                                                                              Cumulative Production
                                                                                                                                  15 - 50 MMBoe
                                        Riley Ridge
                                           (DNR)                                                                                  50 – 100 MMBoe
                                                                                                                                  > 100 MMBoe
                          Shute Creek
                            (XOM)                                                                                                 Denbury Owned Fields – Current CO2 Floods
                                                            Existing CO2          DKRW             Grieve Field                   Denbury Owned Fields – Future CO2 Floods
                                                              Pipeline                             6 MMBbls(1)                    Fields Owned by Others – CO2 EOR Candidates


                                                                                                                                    Pipelines
                                                                                                                                           Denbury Pipelines in Process
(1) Probable and possible tertiary reserve estimates as of 6/30/2012, based on a variety of recovery factors.
                                                                                                                                           Denbury Proposed Pipelines
(2) Proved reserves as of 12/31/11                                                                                                         Pipelines Owned by Others
(3) Acquisition announced Sept. 2012, expected to close around the end of Nov. 2012. See slide 9 for transaction details.

                                                                                                                                                                                14
More than a Billion Barrels of Oil Potential

              1,200                                                                                                         46
                                                                                                         93
                                                                                                                .....              .....1,116
                                                                                      560                                                     90%
              1,000                                                                           ..... 100%                  100%
                                                                                                                          Natural
                                                                                                                                               Oil
                                                                                     100%
                                                                                      Oil                 Oil              Gas
                800
      MMBOE




                600                             516
                              462
                                                                   417
                400           77%
                                                 81%
                                                  Oil
                                                                           .....
                                                                   84%
                               Oil
                                                                    Oil
                200

                    0
                          12/31/11            6/30/12      6/30/12    +CO2 EOR +Webster/        +Riley      =Total
                                                                              (3)
                           Proven             Proven      Estimated Potential      Hartzog      Ridge      Potential
                                                      (1)                                              (3)
                          Reserves           Reserves Pro-Forma                   CO2 EOR Natural Gas
                                                           Proven                 Potential (3)
                                                          Reserves(2)

(1)           Based on year-end 12/31/11 SEC proved reserves rolled forward through 6/30/12 for production, assets purchased and sold, incremental proved
              reserves for Hastings and Oyster Bayou and Bakken development.
(2)           Based on year-end 12/31/11 SEC proved reserves rolled forward for production, assets purchased and sold, incremental proved reserves for Hastings
              and Oyster Bayou and Bakken development. Estimated pro-forma for Bakken sale and asset exchange, see slide 9 for transaction details.
(3)           Estimates based on internal calculations, refer to slide 2 for full disclosure of forward-looking statements.


                                                                                                                                                             15
Highest Operating Margin in the Peer Group (1)

$/BOE
  80

          (4%)                                                                                                                                  1Q12
 70                    (7%)
                                                                                                                                                2Q12
                                 (15%)        (15%)
 60                                                        (14%)


 50
                                                                       (11%)

 40                                                                                 (21%)
                                                                                                 (11%)
                                                                                                             (18%)        (18%)
 30
                                                                                                                                      (17%)
 20                                                                                                                                                (33%)


 10


   0
          DNR        DNR          Peer A      Peer B       Peer C      Peer D       Peer E      Peer F       Peer G      Peer H        Peer I      Peer J
                 (2)
       Pro-Forma

(1) Data derived from SEC filings, 3 months ended 3/31/12 and 6/30/12, respectively and includes CLR, CXO, FST, NBL, NFX, PXD, RRC, SM, WLL, and XEC. Calculated
    as revenues less lease operating expenses, marketing/transportation expenses, and production and ad valorem taxes
(2) Pro-forma for recently announced Bakken asset sale. See slide 9 for transaction details

                                                                                                                                                              16
Highest Capital Efficiency in Peer Group(1)

                                  Adjusted 3-Year Finding & Development Cost ($/BOE)(2)
               $30.00
                           $26.90
                                       $25.53      $24.54
               $25.00                                           $24.24      $23.58      $22.69      $21.74      $20.83      $20.45
               $20.00
                                                                                                                                        $16.75      $16.38
               $15.00                                                                                                                                           $12.80

               $10.00

                $5.00

                $0.00
                           Peer A      Peer B      Peer C      Peer D      Peer E      Peer F       Peer G     Peer H       Peer I       DNR(3) DNR Pro         Peer J
                                                                                                                                                 Forma(3)


                                                          Adjusted Capital Efficiency Ratio
                450%
                400%       383%
                                      366%
                350%                                                                                                                 TTM EBITDA(4)            Efficiency
                                                 293%                                                                                              =
                300%                                        261%      256%       253%
                                                                                                                                       Adj. F&D                 Ratio
                250%                                                                        212%
                200%                                                                                   163%       156%       155%
                150%                                                                                                                   126%       115%       107%
                100%
                  50%
                   0%
                         DNR Pro      DNR       Peer A      Peer B    Peer C     Peer D    Peer E     Peer F     Peer G     Peer H     Peer I     Peer J     Peer K
                          Forma
(1) Peer Group includes CLR, CXO, FST, NBL, NFX, PXD, RRC, SD, SM, WLL, XEC
(2) Three years ended 12/31/2011, which includes Encore Acquisition in 2010. Calculated as total capital expenditures divided by net reserve additions, including changes in
    future development costs and change in unevaluated properties.
(3) Includes 3 year average DD&A for CO2 properties of $0.83 per BOE
(4) Trailing twelve months EBITDA ended 6/30/2012.

                                                                                                                                                                               17
CO2 EOR – Proven Value Creation


        Investments – Inception-to-12/31/2011              ($) Billions
        Gulf Coast EOR Fields                                     $2.7
        Gulf Coast CO2 Sources & Pipelines                         1.9
        Less Undeveloped:
           EOR Fields                                0.6
           CO2 Pipelines                             1.0
                                                                  (1.6)
        Net Investment-to-Date – Proved Properties                 3.0


        Inception-to-Date Net Revenues                             3.1
           Net Cash flow                                           0.1
        PV10 of proved EOR at 12/31/11                             5.7
        Value Created                                             $5.8




                                                                          18
2013 Summary Guidance(1)

            2013 Capital Budget – $1.0 Billion(2)                                                             2013 Production Estimate
                                                                                                                                          2012E(3)    2013E     2013E
                                                                                                      Operating area
                                                                                                                                          (BOE/d)    (BOE/d)   Growth

                                  All Other                                                          Tertiary Oil Fields                   34,500
                                                                                                                                                     36,500-
                                                                                                                                                                6-14%
                                  $150 MM                                                                                                             39,500
                                                                 Tertiary Floods
                                                                                                     Non-Tertiary Oil Fields               21,800     24,500
                                                                    $540MM
       CO2 Sources                                                                                   Total Estimated                                 61,000-
        $200MM                                                                                                                             56,300               8-14%
                                                                                                     Production                                       64,000


                         CO2 Pipelines
                           $110MM

                                                                                                             Stock re-purchased to date increases
                                                                                                                 production per share ~5%(4)

                     Up to $500 million of additional stock
                           repurchases authorized



(1) See slide 2 for full disclosure of forward-looking statements.
(2) Excludes capitalized exploration, capitalized interest and capitalized pre-production EOR startup costs, estimated at $125 million.
(3) Using mid-point of guidance estimates. Adjusted for divestitures completed in 2012 and recently announced Bakken sale and exchange.
(4) Total stock purchased since October 2011 is 18.7 million shares at $14.47 per share.

                                                                                                                                                                   19
A Decade of CO2 EOR Production Growth(1)

   Anticipating a Low Teens Average Annual Percentage Growth Rate

                                           140,000                                                                                                 1,400




                                                                                                                                                           Estimated CO2 EOR Capital Budget ($MM)
  Estimated CO2 EOR Production (MBbls/d)




                                           120,000                     Expected Peak                                                               1,200
                                                                      CO2 EOR Cap-Ex
                                                                                                                                   100,000
                                           100,000                                                                                                 1,000
                                                                                           After 2016 –
                                                                                            Growing
                                                                                          Wedge of Free
                                            80,000    CO2 EOR 2013E                        Cash Flow                                               800
                                                          Cap-Ex
                                                                                                                 CO2 EOR
                                            60,000                                                                                                 600
                                                                                                                  2022E
                                                                                                                  Cap-Ex
                                            40,000                                                                                                 400
                                                     34,500
                                                                  ● Bell Creek         ● Conroe
                                            20,000                ● Webster            ● Cedar Creek Anticline                                     200
                                                                  ● Hartzog Draw       ● Thompson
                                                0                                                                                                  0
                                                     2012E     2014          2016           2018              2020                2022E
(1) 2013 and future forecasted capital expenditures and production may differ materially from actual results. See slide 2 for full disclosure of
    forward-looking statements.

                                                                                                                                                                                            20
CO2 EOR – Proven Free Cash Flow Generator

                                                  Cumulative Gulf Coast Tertiary Free Cash Flows(1)
                                                                                                                                       +/- $1.7 Billion
      Cumulative Free Cash Flow ($MM)




                                                                First Year of
                                                              Free Cash Flow




                                        2005   2006   2007   2008   2009   2010   2011      2012E 2013E 2014E 2015E 2016E


(1) Calculated from actual historical operating cash flow (revenues less operating expenses) less capital expenditures and currently projected operating
    income and capital expenditures in 2012 and beyond using a flat $90 NYMEX crude oil price. Includes Jackson Dome and Pipeline expenditures in Gulf
    Coast, and also includes recently announced acquisition of Webster. See slide 2 for full disclosure of forward-looking statements.

                                                                                                                                                          21
Estimated CO2 EOR Peak Production Rates

                                                    Estimated Peak Production Rate                                 Produced      Proved       Potential
                                   First                    (Net MBOE/d)                               Expected
  Operating Area                                                                                                    to date(1) Remaining(1) Remaining(2)
                                Production                                                             Peak Year
                                                  <5       5-10      10-15      15-20      > 20                    (MMBOE) (MMBOE)           (MMBOE)

 Mature Area                        1999                                                                 2010            52            56           70
 Tinsley                            2008                                                               2012-14            7            30            9
 Heidelberg                         2009                                                               2018-20            2            30           12
 Delhi                              2010                                                               2015-17            2            26            8
 Oyster Bayou                       2012                                                               2015-17           <1            14           11
 Hastings                           2012                                                               2018-20           <1            46           24
 Bell Creek                         2013                                                               2019-21           ---           ---          30
 Webster                            2015                                                               2022-25           ---           ---          68
 Hartzog Draw                       2016                                                               2021-23           ---           ---          25
 Conroe                             2017                                                               2033-35           ---           ---         130
 Cedar Creek Anticline              2017                                                               2023-27           ---           ---         200
 Thompson                           2019                                                               2025-27           ---           ---          45

Expected year of first tertiary production.




1) Tertiary oil production as of 6/30/2012, and reserves as of 12/31/11 rolled forward to 6/30/2012.
2) Based on internal estimates of reserve recovery, using mid-points of ranges.

                                                                                                                                                         22
CO2 EOR Primer
Core Focus: CO2 EOR
                   Secure CO2             Transport via                     Inject into            Capture &
                     Supply                 Pipeline                          Oilfield             Store CO2
 CO2 EOR
 Process




  Sources of CO2      Infrastructure               CO2 EOR                       Captured/
     Natural &       Carbon Steel Pipeline         Reservoir                     Stored CO2
   Anthropogenic           Dry CO2                                            Positive for US energy
    (Man-made)      Dense Phase (>1200 psi)
                                                 Requirements
                                              Adequate Depth (> +/-3000’)          security, the
                                               Confining Geologic Seals        environment and the
                                                  Reserve Potential                  economy
                                                 Rock Characteristics



                                                                                                               24
CO2 EOR – A Brief History

                                               Little Creek                   Denbury Acquires
                                                 1973                          Little Creek Field
 1st Patent on
  CO2 EOR
                                                                                      1999
                                  1st
                                    Commercial
 Technology
                 Jackson Dome     CO2 EOR Flood                     Rangely
   1952                                                                                             Salt Creek
                  Mississippi       SACROC                          Colorado
                                                                                                    Wyoming
                    1964                1972                           1986                          2004

       1950             1960               1970                 1980            1990                 2000        2010

                   Field Test                        Wasson (DU)
                                   Sheep Mtn
                    In Mead                         Permian Basin
                                   Colorado
                  Strawn Field
                                        1971            1983           Lost Soldier
                 Permian Basin                                          Wyoming
                    1964                              Seminole           1989
                                                    Permian Basin
Bravo Dome
New Mexico
                                                         1983
   1916
McElmo Dome
                                Permian Basin – West Texas Growth and Expansion
  Colorado
   1944
                                                                       Rocky Mountain Growth and Expansion


                                                                Gulf Coast Growth and Expansion

                                                                                                                        25
CO2 EOR is a Proven Process

  Significant CO2 EOR Operators by Region                                                Significant CO2 Suppliers by Region
Gulf Coast Region                                                                       Gulf Coast Region
• Denbury Resources                                                                     • Jackson Dome, MS (Denbury Resources)
Permian Basin Region                                                                     Permian Basin Region
• Occidental                               • Kinder Morgan                              • Bravo Dome, NM (Kinder Morgan, Occidental)
                                                                                        • McElmo Dome, CO (ExxonMobil, Kinder Morgan)
• Whiting                                                                               • Sheep Mountain, CO (ExxonMobil, Occidental)
Rockies Region                                                                           Rockies Region
• Denbury Resources                        • Anadarko                                   • Riley Ridge, WY (Denbury Resources)
Canada                                                                                  • LaBarge, WY (ExxonMobil)
                                                                                        • Lost Cabin, WY (ConocoPhillips)
• Cenovus                                  • Apache
                                                                                         Canada
                                                                                        • Dakota Gasification – Anthropogenic (Cenovus, Apache)

          300        CO2 EOR Oil Production by Region

                    Gulf Coast/Other                                                                                       DGC
          250
                    Mid-Continent
                                                                                                                   Lost
                                                                                                     Riley Ridge   Cabin
          200       Rocky Mountains
MBbls/d




                                                                                                     & LaBarge
                    Permian Basin
          150                                                                                          McElmo
                                                                                                        Dome               Bravo
                                                                                                                           Dome
          100
                                                                                                                                   Jackson
                                                                                                                                    Dome

          50                                                                               Significant CO2 Source

            -
                1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012




                                                                                                                                                  26
Step 1: CO2 Sources & Capture

              CO2 Sources
               & Capture        ●   Denbury has its own natural source
                                    of CO2 at Jackson Dome in
                                    Mississippi and plans to capture
                                    man-made volumes from power
                                    plants or industrial sources.


                                ●   Denbury owns 100% working
                                    interest in Riley Ridge in Wyoming,
                                    a source of CO2 for Denbury’s
                                    Rocky Mountains operations.


                                ●   CO2 capture occurs when natural
                                    or man-made CO2 is purified and
                                    dried for transportation to oil fields.



                                                                              27
Current U.S. CO2 Sources & Pipelines


                                                         CO2 to Canada

                                                                                     Great Plains
                                                                                     Coal
                                                        Lost Cabin                   Gasification                            Antrim
                                                                                     Plant                                   Gas
                                                                                                                             Plant
                                                LeBarge


                                                                   Sheep
                                                      McElmo       Mountain
                                                      Dome

                                             Ridgeway CO2                    Bravo              Ammonia
                                             Discovery                       Dome               Plant


                                                                                                                  Jackson
                                                                                                                  Dome


             Sources of CO2 Supply for EOR in US(1)
                                                                                         Gas
          6,000                                                                          Plants
                                                            Hydrocarbon
          5,000
                                                            Conversion with
          4,000                                             CO2 Capture                                               Legend
 MMcf/D




          3,000                                             Natural Gas                                                     Existing Natural CO2 Sources
                                                            Processing
          2,000
                                                                                                                            Existing Anthropogenic Sources
          1,000
                                                            Natural Sources                                                 Anthropogenic Under Construction
             0
                  2000          2010         2015E
                                                                                                                            Existing/Future EOR Fields
(1) DiPietro P. & Balash P. (2011). A Note on Sources of CO2 Supply for Enhanced Oil Recovery Operations, NETL.

                                                                                                                                                               28
Step 2: CO2 Transportation

                  CO2
             Transportation
                              ●   In the Gulf Coast region,
                                  Denbury currently operates or
                                  controls over 860 miles of CO2
                                  pipelines and plans to construct
                                  another pipeline to Conroe
                                  Field
                              ●   In the Rockies region,
                                  Denbury will finish constructing
                                  a 232-mile CO2 pipeline in
                                  December 2012
                              ●   Denbury will own, operate, or
                                  control ~1,650 miles of CO2
                                  pipeline once current plans are
                                  fully developed.


                                                                     29
Major Denbury Pipelines



                                     Rocky Mountain
                                    Greencore Pipeline
                                         Initial 232 miles
                                 Expected completion in December 2012




       Gulf Coast
     Green Pipeline
          325 miles
    Completed in December 2010




                                                                        30
Step 3: CO2 Enhanced Oil Recovery & Storage

              CO2 EOR
              & Storage



                           ●   CO2 EOR operations have
                               demonstrated the ability to
                               recover significant amounts of
                               additional oil, and also provide
                               a method to store man-made
                               volumes of CO2 in depleted oil
                               reservoirs




                                                                  31
How much oil remains in an old oil field?

   Sand Grain
   with water                                                         Remaining
    coating          Oil                      Isolated oil droplets     CO2




                                   At Microscopic Level
   Initial Discovery       After Primary        After Secondary           After Tertiary
      Conditions             Recovery              Recovery                 Recovery
                                                (Waterflooding)            (CO2 EOR)
    Oil Saturation         Oil Saturation         Oil Saturation          Oil Saturation
        ~70%                   ~50%                   ~30%                    ~15%


                                                                                           32
How do we measure oil saturation?

• Logs (measurement of rock characteristics)
   o Cased Hole & Open Hole

• Cores (pieces of oil filled rock)
   o Special Core studies




                                               33
Define the size of the reservoir

                   3.4 Miles




3.2 Miles




                Oyster Bayou                    Oyster Bayou
            Structural Surface of           E-W A-A*Section of 3-D
                   Top A1                      Porosity Model


              A mature oil field has a lot of wells, which
            provides detailed knowledge of reservoir size


                                                                     34
Define target oil volume



                  Oil
               Produced
Original                               Reservoir Size
 Oil In        Remaining
 Place            Oil
                Volume
                                                                              Oil Saturation

    Original Oil in Place – Oil Produced =        Size of Reservoir x Current Oil Saturation =
           Remaining Oil Volume                              Remaining Oil Volume




 Using two proven methodologies provides us with a high degree
     of confidence with a relatively small range of outcomes.


                                                                                                 35
Will CO2 recover additional oil?


     At Microscopic Level


 Depends on how well CO2
      mixes with oil




                               % Oil Recovery
Composition of oil, pressure
and temperature of reservoir                    Estimated MMP to occur @ 2400 psig

      determine mixing
       characteristics



              Recovery = the % of oil recovered
Minimal Miscibility Pressure (MMP) = pressure where CO2 & oil
                    mix together completely

                                                                                     36
Contacting oil with CO2


Injector                                Producer




              CO2

                                                   Volumetric Sweep Efficiency is the
                                                    volume of rock contacted by CO2




 The greater the volume of reservoir contacted by CO2, the greater the oil recovery
                      (larger the volumetric sweep efficiency)
           Historical waterflood performance is a predictor of sweep efficiency


                                                                                      37
How Much Oil Does CO2 Recover?

                          CO2 EOR Delivers Almost as Much Production as
                                Primary or Secondary Recovery(1)

                                            Tertiary                                                       Remaining
                                                                                                              Oil
                                           Recovery
                                           (CO2 EOR)
                                               ~17%


                                                   Secondary
                                                   Recovery
                                                  (waterfloods)                                     Primary
                                                        ~18%                                       Recovery
                                                                                                    ~20%

                                               Volumetric Sweep x
                                           Displacement Efficiency(2) =
                                                    Recovery
(1) Recovery of Original Oil in Place based on history at Little Creek Field.
(2) % of oil displaced when contacted by CO2, which is influenced by MMP and rock heterogeneity.

                                                                                                                       38
How do we predict oil rates?




  CO2 Injection Rates drive the Speed of Oil Recovery
         The more CO2 injected, the faster the oil comes out


                                                               39
Actual Industry Recovery Curves




                                  Range of
                                  Recovery
                                  10%-18%




                                        40
Actual Curves – Denbury Mature Fields




                                        Range of
                                        Recovery
                                        11%-20+%




                                               41
How do we determine peak oil production rate?

• Pace of capital development drives peak oil rate
   • Number of patterns or well activities
   • Pattern performance becomes additive
                                                     2012 Activity


                         Tinsley




                                                                     42
Oil Production Curves


                        CO2 EOR Production




                                             Tinsley
                                             Eucutta
                                             Soso
                                             Delhi




                                                       43
How do we know if a CO2 flood is working?

  Production Well Profile Log             Injection Profile Log




                                A-4                               CO2
                                                               Injection

                                A-4L




                                A-5




                                       Injecting 26.5 MMCFD @ 1600 psi
                                                 21 perforations



                                                                           44
Is the CO2 working efficiently?

 Measure the efficiency of the CO2 injected
 - Oil recovery per MCF injected




                                              45
Is the CO2 working efficiently?

Measure the efficiency of the CO2 Produced
- Gas/Oil Ratio (GOR) gives indication of processing efficiency




                                                                  46
Repeatable Process


                               Variables we will continue
                Size of
                 Field
                                  to encounter as we
                                expand operating areas



                 Tools,
 Character     Process,      Field
  of Rock     Equipment,   Locations
               Technical
              Knowledge
                                Constants that make the
                                process successful and
                                      repeatable


                                                        47
Why is CO2 EOR our core focus?

● High Confidence of Oil Target
     Nearly 70 million barrels produced by Denbury to date
     Net upward adjustments to reserves-to-date
● CO2 Flooding Recovers Oil (CO2 ♥’s Crude Oil)
     First CO2 EOR production was in 1972
     Over 1.5 billion barrels produced to date in the US(1)
     Current estimated production in the US is ~284 MBbls/d(2)
● A Very Repeatable Process with a lot of Running Room
     Up to 10 Billion Barrels Recoverable with CO2 EOR in our two operating areas
     Over 800 Million Barrels of CO2 EOR potential in our portfolio today




(1) Oil & Gas Journal, Dec. 7, 2009
(2) Oil & Gas Journal, July 2, 2012

                                                                                     48
Step 4: CO2 Strategy Benefits

              CO2 Strategy
               Benefits

                             ●   After the CO2 EOR process is
                                 completed, the CO2 is stored in the
                                 geological formation that trapped
                                 the oil originally


                             ●   Oil production in these domestic
                                 fields enriches the local economy,
                                 royalty owners and Denbury
                                 shareholders while reducing the
                                 need for imported oil




                                                                       49
CO2 EOR – A Better Mousetrap

                                      CO2 EOR                            Shale Plays
   Proof of New Basin                      None                                $$$$$
 Competition for Services                 Minor                                Heavy
    Known Oil Target                        Yes                                  No
                            Tighter range of outcomes early        Wider range of outcomes early in
  Predictable Type Curve     in play. Learning applicable to          play. Range declines with
                                     analogous fields                       learning curve
    Precise Timing of                                              Use type curve once established
                                      More Difficult
  Production Response                                                        (2-3 years)
   $ Profit / $ Invested                  Higher                         Lower – “Treadmill”
        % Crude                        Nearly 100%                    Lower – variable by basin
                                None until clear production
                                                                    Book surrounding PUD’s after
    Reserve Booking            response; incremental adds
                                                                             drilling well
                                           follow
                            Existing oil fields store CO2 with a      Large footprint with large
  Environmental Impact      minimal footprint and little use of    amounts of water and chemicals
                                    natural resources                 used for fracturing wells
                             Lower Finding & Development            Higher Finding & Development
       Total Costs
                             costs; Higher Operating Costs          costs; Lower Operating Costs


                                                                                                     50
CO2 EOR Fields Overview
Strategy: Tertiary Operations

● Safety & Environment

● Operational excellence
    Maximum production at optimum cost

● Maximize oil recovery from reservoir

● Convert resources to producing reserves
    Project execution excellence
    Long-term production growth

● People: Expertise in all aspects of CO2 lifecycle
● Improve returns on investment
    Optimize life-cycle costs
    New ideas/technology


                                                      52
2012 Highlights: Tertiary Operations

Area of Operation   Operational Highlight

                    ● Booked initial reserves of ~43 MMBbls
Hastings            ● Strong initial production
                    ● 2,794 BOPD in 3Q 2012
                    ● Booked initial reserves of ~14 MMBbls
Oyster Bayou        ● Encouraging early reservoir response
                    ● 1,540 BOPD in 3Q 2012
                    ● Completed remediation work
Tinsley
                    ● Production growth

Heidelberg CO2      ● Conformance challenges addressed

Thompson            ● Acquired new field; 30-60 MMBOE 3P CO2 EOR Reserves

Webster             ● Pending acquisition of new field; 60-75 MMBOE 3P CO2 EOR Reserves

Hartzog Draw        ● Pending acquisition of new field; 20-30 MMBOE 3P CO2 EOR Reserves




                                                                                          53
2013 Production

 Variables that influence 2013 EOR production
 ● Bell Creek
     CO2 supply timing & volume from COP Lost Cabin
     Pace of response to CO2 injection
 ● Heidelberg
     New East Heidelberg flood performance (peak prod. rate per well)
 ● Hastings
     Pace of oil response in downdip patterns
     Response to added compression
 ● Oyster Bayou
     Pace of oil response to CO2 injection
 ● Delhi
     Response timing of newly developed areas
     Date of reversionary interest


                                                                         54
Gulf Coast Region
Gulf Coast Region: Active CO2 Floods

                                      Tertiary Proved Reserves(1)                                                                                                                                                    Tinsley
                               250
                                                                                                            Delhi
    Proved Reserves (MMBbls)




                                                                                                                                                              Tinsley

                                      Hastings                                                                                                                                                  Jackson
                               200                                                                                                                                                               Dome
                                      Oyster Bayou

                               150    Delhi                                                                          Delhi

                                                                                                                                                                                                Free State Pipeline
                                                                                                                                                                                                                                    Davis
                                      Tinsley    (2)
                                                                                                                                                                                                                               Quitman
                                                                                                                                                                                                                       Heidelberg
                                                                                                                                                                                  Martinville
                               100    Heidelberg                                                                                                                                                             Sandersville

                                                                                                                     Lake                    Sonat                                              Summerland      Soso                               Cypress Creek
                                                                                                                                                                                                                               Eucutta      Yellow Creek
                                                                                                                                           MS Pipeline
                                                                                                                    St. John
                                      Mature Fields
                                50                                                                                                            Brookhaven
                                                                                                                               Cranfield
                                                                                                                                                      Mallalieu
                                                                                                 LOUISIANA                                            Olive
                                                                                                                                                                                                                                                          Citronelle
                                                                                                                                                                   Little Creek
                                -                                                                                                              Smithdale

                                                                                                                                                              McComb
                                     99 00 01 02 03 04 05 06 07 08 09 10 11 12E
                                                                                                  Mature Fields
                                                       TEXAS                                                                                                                                                                        Heidelberg
                                                                                                   Green Pipeline
                                                                                                                                           Lockhart
                                                                                                                                           Crossing
                                                              Conroe



                                                                                                                                                      Donaldsonville




                                                                                  Fig Ridge
                                                                                Oyster
                                                          Thompson              Bayou




                                                                     Hastings


                                Hastings Area
                                                                                  Oyster Bayou
                                                                                                                                            Cumulative Production
                                                                                                                                                  15 - 50 MMBoe
                                                                                                                                                  50 – 100 MMBoe
                                                                                                                                                  > 100 MMBoe
                                                                                                                                                  Denbury Owned Fields
                                                                                                                                                  Fields Owned by Others – CO2 EOR Candidates

1) Proved reserves as of December 31st of each respective year, with the exception of 2012, which is an internal estimate as of 6/30/2012.


                                                                                                                                                                                                                                                                       56
Gulf Coast Tertiary Oil Production



                  40,000
                                      Net Daily Tertiary Oil Production

                  35,000


                  30,000


                  25,000
       Net BOPD




                  20,000


                  15,000


                  10,000


                   5,000


                      0
                       2003   2004   2005   2006   2007   2008   2009   2010   2011   2012




                                                                                             57
Hastings Field


                                                                                                                   Net Daily Oil Production
                                                                                        3,500

                                                                                        3,000

                                                                                        2,500
            TEXAS                                   LOUISIANA




                                                                             Net BOPD
                                                                                        2,000

                                                                                        1,500

                                                                                        1,000

                                                                                                       ─    Conventional Oil Production
                                                                                         500
                                                                                                       ─    Tertiary Oil Production
                                                        Green Pipeline
                                                                                           0
                                                                                                2009                2010                  2011         2012




        Hastings
                                                                                                           Tertiary Reserves & Investment(1)
                                                                                                                                                 6/30/12
                                                                                                               Proved          Cumulative         PV-10        2P&3P
 Hastings                                                                                Reserves             Reserves         Investment        Proved       Reserves
                                                                                         Produced             Remaining        Recovered          Value       Remaining
                                                                                         (MMBOE)              (MMBOE)             ($MM)          ($MM)        (MMBOE)


                                                                                                <1                46             ($334)          $1,005          24



(1)   Data as of 6/30/12, unless otherwise noted; Prices at 6/30/12 were $95.67 / $3.19

                                                                                                                                                                      58
Hastings Field: 2013E Program

                     Continue CO2 EOR Development; CapEx: ~$90 MM

 ● Hastings
                                                                         3.5 miles


     Production: Growth 
     CapEx: ~$90MM
       ● Finish developing Fault Blk “A”, begin wellwork and
         injection into Fault Blk “B” & “C”
       ● Drill ~16 wells
       ● Add compression: Q4 2012; Q3 2013                      Fault Block A
                                                                 2009-2013                        4.5 Miles




                                                                     Fault Blocks B&C
                                                                        2013-2014




                                                                                     Fault Blocks D-M
                                                                                        2014-2019



                                                               4,420 Acres




                                                                                                         59
Oyster Bayou Field


                                                                                                       Net Daily Tertiary Oil Production
                                                                                          1,800

                                                                                          1,600

                                                                                          1,400

                                                                                          1,200
         TEXAS                                      LOUISIANA




                                                                               Net BOPD
                                                                                          1,000

                                                                                           800

                                                                                           600

                                                                                           400

                                                                                           200
                                                        Green Pipeline
                                                                                             0
                  Oyster Bayou                                                               Dec-11      Feb-12      Apr-12      Jun-12      Aug-12       Oct-12


                                                                                                      Tertiary Reserves & Investment(1)
                                                                                                                                      3/31/12
                                                                                                          Proved      Cumulative       PV-10           2P&3P
                                                                                           Reserves      Reserves     Investment      Proved          Reserves
                    Oyster Bayou
                                                                                           Produced      Remaining    Recovered        Value          Remaining
                                                                                           (MMBOE)       (MMBOE)         ($MM)        ($MM)           (MMBOE)


                                                                                              <1            14          ($172)            $510           11



(1)   Data as of 6/30/12, unless otherwise noted; Prices at 3/31/12 were $98.15 / $3.76

                                                                                                                                                              60
Oyster Bayou Field: 2013E Program

                       Grow CO2 EOR Production; CapEx: ~$5 MM

  ● Oyster Bayou
      Production: Growth throughout 2013 
      CapEx: ~$5MM
        ● Increase CO2 injection and water disposal



                                                                  3.4 Miles




                                                      3.2 Miles
                                                                              3,912
                                                                              Acres




                                                                                      61
Delhi Field


                                                                                               5,000
                                                                                                            Net Daily Tertiary Oil Production
               Delhi
                                                                                               4,000

                                                          Jackson




                                                                                    Net BOPD
                                                           Dome                                3,000


      Delhi                                                                                    2,000

                                                          Free State Pipeline
                                                                                               1,000


                                                                                                    0
                                                                                                     2010               2011          2012           2013


                          Sonat
                        MS Pipeline                                                                    Tertiary Reserves & Investment(1)
                                                                                                                                      12/31/11
                                                                                                             Proved      Cumulative    PV-10      2P&3P
                                                                                    Reserves                Reserves     Investment   Proved     Reserves
                                                                                    Produced                Remaining    Recovered     Value     Remaining
                                                                                    (MMBOE)                 (MMBOE)         ($MM)      ($MM)     (MMBOE)


                                                                                                2              26          ($177)     $1,020        8




(1)     Data as of 6/30/12, unless otherwise noted; SEC prices at 12/31/11 were $96.19 / $4.163

                                                                                                                                                        62
Delhi Field: 2013E Program

                             Continue Field Development, CapEx: ~$40 MM

  ● Production: Growth  until reversionary interest reached in ~late 2013
      Net Revenue Interest (NRI) changes from ~76% to ~57%
          ● Impact is ~ 1,000 – 1,500 BOPD when NRI changes
  ● CapEx: ~$40 MM
      Pattern optimization
          ●   (Facility expansion, Drill ~ 15 wells)


                                                                          2012 Activity
                                                       Pilot Area


                                          2011 Activity




                                                              2010 Activity


                                                              2013
                                                             Activity


                                                                                          63
Heidelberg Field


                                                                                                         Net Daily Tertiary Oil Production
                                                                                             4,500
                                                                                             4,000

                    Jackson
                                             Heidelberg                                      3,500
                     Dome
                                                                                             3,000




                                                                                  Net BOPD
                                                                                             2,500
                                                                                             2,000
                       Free State Pipeline
                                                                                             1,500
                                             Heidelberg                                      1,000
                                                                                              500
                                                                                                 0
                                                                                                  2009           2010            2011              2012



                                                                                                     Tertiary Reserves & Investment(1)
                                                                                                                                        12/31/11
                                                                                                          Proved        Cumulative       PV-10         2P&3P
                                                                                 Reserves                Reserves       Investment      Proved        Reserves
                                                                                 Produced                Remaining      Recovered        Value        Remaining
                                  MISSISSIPPI                                    (MMBOE)                 (MMBOE)           ($MM)         ($MM)        (MMBOE)


                                                                                             2              30             $54           $930             12




(1)   Data as of 6/30/12, unless otherwise noted; SEC prices at 12/31/11 were $96.19 / $4.163

                                                                                                                                                               64
Heidelberg Field: 2013E Program

                        Continued Field Development; CapEx: ~$120 MM

 ● Heidelberg
     Production: Flat thru 3Q12  and Growth in 4Q12 
     East (Capex ~ $100 MM):                                     2013
       ●   Expand Eutaw & Christmas zone development             Activity
     West (Capex ~ $20 MM)




                                                                                    East Heidelberg Eutaw




                                                                                    2013
                                                                                   Activity

                                                       East Heidelberg Christmas




                                                                                                            65
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Fall Analyst Presentation

  • 1. All Oil Companies Are Not Alike. Analyst Day Presentation NYSE: DNR November 2012
  • 2. About Forward Looking Statements The data contained in this presentation that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Such statements may relate to, among other things, forecasted capital expenditures, drilling activity, acquisition and dispositions plans, development activities, timing of CO2 injections and initial production response in tertiary flooding projects, estimated costs, production rates and volumes or forecasts thereof, hydrocarbon reserve quantities and values, CO 2 reserves, helium reserves, potential reserves from tertiary operations, future hydrocarbon prices or assumptions, liquidity, cash flows, availability of capital, borrowing capacity, finding costs, rates of return, overall economics, net asset values, potential reserves and anticipated production growth rates in our CO2 models, 2012, 2013 and future production and expenditure estimates, and availability and cost of equipment and services. These forward-looking statements are generally accompanied by words such as “estimated”, “preliminary”, “projected”, “potential”, “anticipated”, “forecasted” or other words that convey the uncertainty of future events or outcomes. These statements are based on management’s current plans and assumptions and are subject to a number of risks and uncertainties as further outlined in our most recent Form 10-K and Form 10-Q filed with the SEC. Therefore, the actual results may differ materially from the expectations, estimates or assumptions expressed in or implied by any forward-looking statement made by or on behalf of the Company. Cautionary Note to U.S. Investors – Current SEC rules regarding oil and gas reserve information allow oil and gas companies to disclose in filings with the SEC not only proved reserves, but also probable and possible reserves that meet the SEC’s definitions of such terms. We disclose only proved reserves in our filings with the SEC. Denbury’s proved reserves as of December 31, 2011 were estimated by DeGolyer & MacNaughton, an independent petroleum engineering firm. In this presentation, we make reference to probable and possible reserves, some of which have been prepared by our independent engineers and some of which have been prepared by Denbury’s internal staff of engineers. In this presentation, we also refer to estimates of original oil in place, resource “potential” or other descriptions of volumes potentially recoverable, which in addition to reserves generally classifiable as probable and possible (2P and 3P reserves), include estimates of reserves that do not rise to the standards for possible reserves, and which SEC guidelines strictly prohibit us from including in filings with the SEC. These estimates, as well as the estimates of probable and possible reserves, are by their nature more speculative than estimates of proved reserves and are subject to greater uncertainties, and accordingly the likelihood of recovering those reserves is subject to substantially greater risk. 2
  • 4. Proven Leadership Team Promoted Promoted Phil Rykhoek Mark Allen Craig McPherson Bob Cornelius Charlie Gibson President & CEO Sr. VP, CFO and Sr. VP & COO Sr. VP, CO2 Sr. VP, Planning, Treasurer Operations Technology & Bus. Dev. New Hire Retiring – 1Q13 New Hire Jim Matthews Dan Cole Greg Dover Matt Elmer John Filiatrault VP, General Counsel VP, Marketing and VP, Operations VP, West Region VP, CO2 Supply & and Secretary Business Development Excellence Pipeline Operations New Hire Steve McLaurin Jeff Marcel Alan Rhoades Barry Schneider Whitney Shelley Phil Webb VP & Chief VP, Drilling and EOR VP & Chief VP, North Region VP and Chief VP, East Region Information Officer Facilities Engineering/ Accounting Officer Human Relations Construction Officer 4
  • 5. A Different Kind of Oil Company “We Bring Old Oil Fields Back to Life” Unique • We acquire mature oil fields and recover oil using carbon dioxide (CO2) Strategy • Requires large sources of CO2 near oil fields - We have both! Value • Highest operating margins and capital efficiency in peer group(1) • Within the next 5 years we anticipate our free cash flow growing while our Creation CapEx is declining • More than 1 billion barrels of potential oil reserves Proven • CO2 EOR is one of the most efficient tertiary oil recovery methods Process • 30% compound annual growth rate (CAGR) in our EOR production since 1999 • We have produced nearly 70 million barrels of oil from CO2 EOR to date Repeatable • We anticipate a decade of low teens EOR production growth from existing fields Growth • Relatively lower-risk – We develop mature conventional oil fields Competitive • Strategic CO2 supply and own or operate over 1,000 miles of CO2 pipeline Advantage • Large inventory of mature oil fields well-suited for CO2 EOR • Top talent and technology • Ability to use and store CO2 captured from industrial facilities results in net Eco-friendly carbon reduction • By developing existing oil fields, we are not disturbing new habitats (1) Please reference slides 16 and 17 for more information 5
  • 6. Denbury at a Glance Pro forma(1) Total 3P Reserves (12/31/11) ~1.3 BBOE ~1.1 BBOE % Oil Production (3Q12) 93% ~93%(2) Total Net Debt (9/30/12) $3.1 billion ~$2.0 billion Total Daily Production – BOE/d (3Q12) 72,776 ~59,725(2) Proved PV-10 (12/31/11) $96.19 NYMEX Oil Price $10.6 billion ~$10.6 billion(3) Market Cap (11/1/12) ~$6.1 billion CO2 3P Reserves (12/31/11) ~16 Tcf CO2 Pipelines Controlled & Under Construction ~1,000 miles Credit Facility Availability (9/30/12) ~$975 million (1) Pro forma for recently announced Bakken sale and exchange, includes Hartzog Draw and Webster. (2) Pro forma production adjusts for production sold and includes roughly 3,600 BOE/d from recently announced acquisition of Hartzog Draw and Webster. (3) PV-10 value at 12/31/11 pro forma for recently announced Bakken sale, excluding Bakken at 12/31/11 and including previously disclosed PV-10 value for Oyster Bayou and Hastings reserves at 6/30/2012 using a $95.67 NYMEX oil price for Oyster Bayou and Hastings. Does not include PV-10 value for Thompson, Hartzog Draw or Webster, nor does it exclude net cash flows from the first six months of 2012. 6
  • 7. What is CO2 EOR & How Much Oil Does It Recover? Secure CO2 Supply Transport via Pipeline Inject into Oilfield CO2 EOR Delivers Almost as Much Production as Primary and Secondary Recovery(1) Tertiary Recovery Remaining (CO2 EOR) Oil ~17% Secondary Recovery (waterfloods) Primary ~18% Recovery (1) Recovery of Original Oil in Place based on history at Little Creek Field. ~20% 7
  • 8. 2012 Accomplishments Successful Execution ● Total and tertiary production expected to be at the upper end of estimated ranges ● Adjusted cash flow from operations expected to be at the upper end of estimated range ● Capital expenditures projected to be in-line with budgeted levels ● Acquired Thompson Field in June 2012 for $366 million ● Divested non-core assets for combined net proceeds of $294 million Start-up of Hastings and Oyster Bayou CO2 floods ● Oil production from the fields exceeded 4,300 barrels per day in 3Q12 ● Booked combined tertiary reserves of nearly 60 million barrels Transformational Bakken transaction ● Sharpens our focus on our highly profitable CO2 EOR strategy ● Adds to our large inventory of CO2 EOR projects and extends total tertiary peak production ● Further strengthens liquidity ● Adds to our existing CO2 supply in the Rockies 8
  • 9. Bakken Sale and Asset Exchange Transaction Terms ● Sell/Exchange Bakken assets for: ● $1.6 billion in cash proceeds (before closing adjustments and taxes) ● Operating interest in Webster Field (SE Texas) ● Operating interest in Hartzog Draw Field (NE Wyoming) ● Expected to close around the end of November, with a 7/1/2012 effective date ● Separately, we have agreed in principle to either purchase incremental CO2 from XOM’s LaBarge Field or purchase an interest in the CO2 reserves from that field ● The purchase of an interest in CO2 reserves would reduce the amount of cash received by Denbury 9
  • 10. Uses of Increased Liquidity Acquisitions ● Future potential CO2 EOR floods ● Potential like-kind acquisitions, which could decrease tax leakage Stock Repurchase Program ● Recent bank amendment permits an additional $930 million of stock repurchases o ~$270 million purchased as of 11/11/12, or nearly 5% of shares outstanding at 9/30/11 ● As of 11/11/12, we are authorized by the Board to repurchase up to an additional $500 million of stock Debt Reduction 10
  • 11. Encore Acquisition was Highly Profitable Purchase price: (Billions) Equity $2.8 Debt assumed 1.0 (1) Total value $3.8 Value: (Estimated values at $96.19/Bbl – 12/31/11 SEC Pricing) Proved reserves at 12/31/11 $1.7 (2) Value received or anticipated from sold properties ~3.6 (3) Net cash flow from 3/9/10 to 12/31/11 0.4 Total ~$5.7 Additional potential: CO2 EOR potential 230 MMBOE (4) (1) Excludes consolidated ENP debt and minority interest in ENP. (2) Excludes sold properties, and ENP reserves. (3) Includes ~$2 billion of estimated value of Bakken sale. (4) Includes CO2 EOR potential at Bell Creek and CCA. 11
  • 12. Our Two CO2 EOR Target Areas: Up to 10 Billion Barrels Recoverable with CO2 EOR Denbury Rockies Region 261 Million 3P CO2 EOR Barrels Estimated 1.3 to 3.2 MT ND Billion Barrels Recoverable Greencore ID Pipeline SD Lost Cabin Hartzog Draw Field WY IL IN KY Existing Denbury CO2 Pipelines Denbury Gulf Coast Region Denbury owned Fields With CO2 EOR Potential Existing or Proposed CO2 Source 594 Million 3P CO2 EOR Barrels Owned or Contracted MS Delta Pipeline Jackson Other CO2 Sources Dome Sonat MS Free State Webster Field Pipeline Pipeline LA Source: DOE 2005 and 2006 reports. TX Green Note: 3P tertiary oil reserves based on year-end 12/31/11 SEC proved Pipeline reserves rolled forward through 6/30/12 for production, incremental Estimated 3.4 to 7.5 proved reserves for Hastings and Oyster Bayou and Bakken development, based on a variety of recovery factors, includes recently Billion Barrels announced acquisition of Hartzog Draw and Webster fields. See slide Recoverable 9 for transaction details. 12
  • 13. Gulf Coast Region: Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage Summary(1) Tinsley Delhi 46 MMBbls Proved 202 36 MMBbls Tinsley Jackson Potential (2) 392 Dome Produced-to-Date 64 Delhi Free State Pipeline Davis Quitman Total MMBbls (2) (2) 658 Martinville Heidelberg Sandersville Lake Sonat Summerland Soso Eucutta Cypress Creek St. John Yellow Creek MS Pipeline Brookhaven Houston Area Cranfield Mallalieu Hastings 60 - 80 MMBbls Conroe Olive Smithdale Little Creek Citronelle Webster(3) 60 - 75 MMBbls 130 MMBbls McComb Mature Area Thompson 30 - 60 MMBbls Other 10 - 20 MMBbls 178 MMBbls Heidelberg 160 - 235 MMBbls Green Pipeline 44 MMBbls Lockhart Crossing Conroe Donaldsonville Fig Ridge Webster Oyster Thompson Bayou Hastings Cumulative Production 15 - 50 MMBoe Oyster Bayou 50 – 100 MMBoe > 100 MMBoe 20 - 30 MMBbls Denbury Owned Fields – Current CO2 Floods Denbury Owned Fields – Future CO2 Floods Fields Owned by Others – CO2 EOR Candidates (1) Proved plus potential (probable and possible) tertiary oil reserves based on year-end 12/31/11 SEC proved reserves rolled forward through 6/30/12 for production, incremental proved reserves for Hastings and Oyster Bayou and Bakken development. Produced-to-Date is cumulative tertiary production through 6/30/12. (2) Using mid-points of range, includes recently announced acquisition of Webster field. (3) Acquisition announced Sept. 2012, expected to close around the end of Nov. 2012. See slide 9 for transaction details. 13
  • 14. Rocky Mountain Region: Control of CO2 Sources & Pipeline Infrastructure Provides a Strategic Advantage CO2 Sources Cedar Creek Anticline 200 MMBbls(1) Existing or Proposed CO2 Source Owned or Contracted MONTANA DGC Beulah Other CO2 Sources Cedar Creek Anticline NORTH DAKOTA Bell Creek 30 MMBbls(1) Elk Basin Bell Creek Riley Ridge(2) Hartzog Draw 415 BCF Nat Gas Greencore Pipeline 232 Miles 20 - 30 MMBbls(3) 12.0 BCF Helium SOUTH DAKOTA 2.2 TCF CO2 Lost Cabin (COP) WYOMING Cumulative Production 15 - 50 MMBoe Riley Ridge (DNR) 50 – 100 MMBoe > 100 MMBoe Shute Creek (XOM) Denbury Owned Fields – Current CO2 Floods Existing CO2 DKRW Grieve Field Denbury Owned Fields – Future CO2 Floods Pipeline 6 MMBbls(1) Fields Owned by Others – CO2 EOR Candidates Pipelines Denbury Pipelines in Process (1) Probable and possible tertiary reserve estimates as of 6/30/2012, based on a variety of recovery factors. Denbury Proposed Pipelines (2) Proved reserves as of 12/31/11 Pipelines Owned by Others (3) Acquisition announced Sept. 2012, expected to close around the end of Nov. 2012. See slide 9 for transaction details. 14
  • 15. More than a Billion Barrels of Oil Potential 1,200 46 93 ..... .....1,116 560 90% 1,000 ..... 100% 100% Natural Oil 100% Oil Oil Gas 800 MMBOE 600 516 462 417 400 77% 81% Oil ..... 84% Oil Oil 200 0 12/31/11 6/30/12 6/30/12 +CO2 EOR +Webster/ +Riley =Total (3) Proven Proven Estimated Potential Hartzog Ridge Potential (1) (3) Reserves Reserves Pro-Forma CO2 EOR Natural Gas Proven Potential (3) Reserves(2) (1) Based on year-end 12/31/11 SEC proved reserves rolled forward through 6/30/12 for production, assets purchased and sold, incremental proved reserves for Hastings and Oyster Bayou and Bakken development. (2) Based on year-end 12/31/11 SEC proved reserves rolled forward for production, assets purchased and sold, incremental proved reserves for Hastings and Oyster Bayou and Bakken development. Estimated pro-forma for Bakken sale and asset exchange, see slide 9 for transaction details. (3) Estimates based on internal calculations, refer to slide 2 for full disclosure of forward-looking statements. 15
  • 16. Highest Operating Margin in the Peer Group (1) $/BOE 80 (4%) 1Q12 70 (7%) 2Q12 (15%) (15%) 60 (14%) 50 (11%) 40 (21%) (11%) (18%) (18%) 30 (17%) 20 (33%) 10 0 DNR DNR Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer H Peer I Peer J (2) Pro-Forma (1) Data derived from SEC filings, 3 months ended 3/31/12 and 6/30/12, respectively and includes CLR, CXO, FST, NBL, NFX, PXD, RRC, SM, WLL, and XEC. Calculated as revenues less lease operating expenses, marketing/transportation expenses, and production and ad valorem taxes (2) Pro-forma for recently announced Bakken asset sale. See slide 9 for transaction details 16
  • 17. Highest Capital Efficiency in Peer Group(1) Adjusted 3-Year Finding & Development Cost ($/BOE)(2) $30.00 $26.90 $25.53 $24.54 $25.00 $24.24 $23.58 $22.69 $21.74 $20.83 $20.45 $20.00 $16.75 $16.38 $15.00 $12.80 $10.00 $5.00 $0.00 Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer H Peer I DNR(3) DNR Pro Peer J Forma(3) Adjusted Capital Efficiency Ratio 450% 400% 383% 366% 350% TTM EBITDA(4) Efficiency 293% = 300% 261% 256% 253% Adj. F&D Ratio 250% 212% 200% 163% 156% 155% 150% 126% 115% 107% 100% 50% 0% DNR Pro DNR Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer H Peer I Peer J Peer K Forma (1) Peer Group includes CLR, CXO, FST, NBL, NFX, PXD, RRC, SD, SM, WLL, XEC (2) Three years ended 12/31/2011, which includes Encore Acquisition in 2010. Calculated as total capital expenditures divided by net reserve additions, including changes in future development costs and change in unevaluated properties. (3) Includes 3 year average DD&A for CO2 properties of $0.83 per BOE (4) Trailing twelve months EBITDA ended 6/30/2012. 17
  • 18. CO2 EOR – Proven Value Creation Investments – Inception-to-12/31/2011 ($) Billions Gulf Coast EOR Fields $2.7 Gulf Coast CO2 Sources & Pipelines 1.9 Less Undeveloped: EOR Fields 0.6 CO2 Pipelines 1.0 (1.6) Net Investment-to-Date – Proved Properties 3.0 Inception-to-Date Net Revenues 3.1 Net Cash flow 0.1 PV10 of proved EOR at 12/31/11 5.7 Value Created $5.8 18
  • 19. 2013 Summary Guidance(1) 2013 Capital Budget – $1.0 Billion(2) 2013 Production Estimate 2012E(3) 2013E 2013E Operating area (BOE/d) (BOE/d) Growth All Other Tertiary Oil Fields 34,500 36,500- 6-14% $150 MM 39,500 Tertiary Floods Non-Tertiary Oil Fields 21,800 24,500 $540MM CO2 Sources Total Estimated 61,000- $200MM 56,300 8-14% Production 64,000 CO2 Pipelines $110MM Stock re-purchased to date increases production per share ~5%(4) Up to $500 million of additional stock repurchases authorized (1) See slide 2 for full disclosure of forward-looking statements. (2) Excludes capitalized exploration, capitalized interest and capitalized pre-production EOR startup costs, estimated at $125 million. (3) Using mid-point of guidance estimates. Adjusted for divestitures completed in 2012 and recently announced Bakken sale and exchange. (4) Total stock purchased since October 2011 is 18.7 million shares at $14.47 per share. 19
  • 20. A Decade of CO2 EOR Production Growth(1) Anticipating a Low Teens Average Annual Percentage Growth Rate 140,000 1,400 Estimated CO2 EOR Capital Budget ($MM) Estimated CO2 EOR Production (MBbls/d) 120,000 Expected Peak 1,200 CO2 EOR Cap-Ex 100,000 100,000 1,000 After 2016 – Growing Wedge of Free 80,000 CO2 EOR 2013E Cash Flow 800 Cap-Ex CO2 EOR 60,000 600 2022E Cap-Ex 40,000 400 34,500 ● Bell Creek ● Conroe 20,000 ● Webster ● Cedar Creek Anticline 200 ● Hartzog Draw ● Thompson 0 0 2012E 2014 2016 2018 2020 2022E (1) 2013 and future forecasted capital expenditures and production may differ materially from actual results. See slide 2 for full disclosure of forward-looking statements. 20
  • 21. CO2 EOR – Proven Free Cash Flow Generator Cumulative Gulf Coast Tertiary Free Cash Flows(1) +/- $1.7 Billion Cumulative Free Cash Flow ($MM) First Year of Free Cash Flow 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E (1) Calculated from actual historical operating cash flow (revenues less operating expenses) less capital expenditures and currently projected operating income and capital expenditures in 2012 and beyond using a flat $90 NYMEX crude oil price. Includes Jackson Dome and Pipeline expenditures in Gulf Coast, and also includes recently announced acquisition of Webster. See slide 2 for full disclosure of forward-looking statements. 21
  • 22. Estimated CO2 EOR Peak Production Rates Estimated Peak Production Rate Produced Proved Potential First (Net MBOE/d) Expected Operating Area to date(1) Remaining(1) Remaining(2) Production Peak Year <5 5-10 10-15 15-20 > 20 (MMBOE) (MMBOE) (MMBOE) Mature Area 1999 2010 52 56 70 Tinsley 2008 2012-14 7 30 9 Heidelberg 2009 2018-20 2 30 12 Delhi 2010 2015-17 2 26 8 Oyster Bayou 2012 2015-17 <1 14 11 Hastings 2012 2018-20 <1 46 24 Bell Creek 2013 2019-21 --- --- 30 Webster 2015 2022-25 --- --- 68 Hartzog Draw 2016 2021-23 --- --- 25 Conroe 2017 2033-35 --- --- 130 Cedar Creek Anticline 2017 2023-27 --- --- 200 Thompson 2019 2025-27 --- --- 45 Expected year of first tertiary production. 1) Tertiary oil production as of 6/30/2012, and reserves as of 12/31/11 rolled forward to 6/30/2012. 2) Based on internal estimates of reserve recovery, using mid-points of ranges. 22
  • 24. Core Focus: CO2 EOR Secure CO2 Transport via Inject into Capture & Supply Pipeline Oilfield Store CO2 CO2 EOR Process Sources of CO2 Infrastructure CO2 EOR Captured/ Natural & Carbon Steel Pipeline Reservoir Stored CO2 Anthropogenic Dry CO2 Positive for US energy (Man-made) Dense Phase (>1200 psi) Requirements Adequate Depth (> +/-3000’) security, the Confining Geologic Seals environment and the Reserve Potential economy Rock Characteristics 24
  • 25. CO2 EOR – A Brief History Little Creek Denbury Acquires 1973 Little Creek Field 1st Patent on CO2 EOR 1999 1st Commercial Technology Jackson Dome CO2 EOR Flood Rangely 1952 Salt Creek Mississippi SACROC Colorado Wyoming 1964 1972 1986 2004 1950 1960 1970 1980 1990 2000 2010 Field Test Wasson (DU) Sheep Mtn In Mead Permian Basin Colorado Strawn Field 1971 1983 Lost Soldier Permian Basin Wyoming 1964 Seminole 1989 Permian Basin Bravo Dome New Mexico 1983 1916 McElmo Dome Permian Basin – West Texas Growth and Expansion Colorado 1944 Rocky Mountain Growth and Expansion Gulf Coast Growth and Expansion 25
  • 26. CO2 EOR is a Proven Process Significant CO2 EOR Operators by Region Significant CO2 Suppliers by Region Gulf Coast Region Gulf Coast Region • Denbury Resources • Jackson Dome, MS (Denbury Resources) Permian Basin Region Permian Basin Region • Occidental • Kinder Morgan • Bravo Dome, NM (Kinder Morgan, Occidental) • McElmo Dome, CO (ExxonMobil, Kinder Morgan) • Whiting • Sheep Mountain, CO (ExxonMobil, Occidental) Rockies Region Rockies Region • Denbury Resources • Anadarko • Riley Ridge, WY (Denbury Resources) Canada • LaBarge, WY (ExxonMobil) • Lost Cabin, WY (ConocoPhillips) • Cenovus • Apache Canada • Dakota Gasification – Anthropogenic (Cenovus, Apache) 300 CO2 EOR Oil Production by Region Gulf Coast/Other DGC 250 Mid-Continent Lost Riley Ridge Cabin 200 Rocky Mountains MBbls/d & LaBarge Permian Basin 150 McElmo Dome Bravo Dome 100 Jackson Dome 50 Significant CO2 Source - 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 26
  • 27. Step 1: CO2 Sources & Capture CO2 Sources & Capture ● Denbury has its own natural source of CO2 at Jackson Dome in Mississippi and plans to capture man-made volumes from power plants or industrial sources. ● Denbury owns 100% working interest in Riley Ridge in Wyoming, a source of CO2 for Denbury’s Rocky Mountains operations. ● CO2 capture occurs when natural or man-made CO2 is purified and dried for transportation to oil fields. 27
  • 28. Current U.S. CO2 Sources & Pipelines CO2 to Canada Great Plains Coal Lost Cabin Gasification Antrim Plant Gas Plant LeBarge Sheep McElmo Mountain Dome Ridgeway CO2 Bravo Ammonia Discovery Dome Plant Jackson Dome Sources of CO2 Supply for EOR in US(1) Gas 6,000 Plants Hydrocarbon 5,000 Conversion with 4,000 CO2 Capture Legend MMcf/D 3,000 Natural Gas Existing Natural CO2 Sources Processing 2,000 Existing Anthropogenic Sources 1,000 Natural Sources Anthropogenic Under Construction 0 2000 2010 2015E Existing/Future EOR Fields (1) DiPietro P. & Balash P. (2011). A Note on Sources of CO2 Supply for Enhanced Oil Recovery Operations, NETL. 28
  • 29. Step 2: CO2 Transportation CO2 Transportation ● In the Gulf Coast region, Denbury currently operates or controls over 860 miles of CO2 pipelines and plans to construct another pipeline to Conroe Field ● In the Rockies region, Denbury will finish constructing a 232-mile CO2 pipeline in December 2012 ● Denbury will own, operate, or control ~1,650 miles of CO2 pipeline once current plans are fully developed. 29
  • 30. Major Denbury Pipelines Rocky Mountain Greencore Pipeline Initial 232 miles Expected completion in December 2012 Gulf Coast Green Pipeline 325 miles Completed in December 2010 30
  • 31. Step 3: CO2 Enhanced Oil Recovery & Storage CO2 EOR & Storage ● CO2 EOR operations have demonstrated the ability to recover significant amounts of additional oil, and also provide a method to store man-made volumes of CO2 in depleted oil reservoirs 31
  • 32. How much oil remains in an old oil field? Sand Grain with water Remaining coating Oil Isolated oil droplets CO2 At Microscopic Level Initial Discovery After Primary After Secondary After Tertiary Conditions Recovery Recovery Recovery (Waterflooding) (CO2 EOR) Oil Saturation Oil Saturation Oil Saturation Oil Saturation ~70% ~50% ~30% ~15% 32
  • 33. How do we measure oil saturation? • Logs (measurement of rock characteristics) o Cased Hole & Open Hole • Cores (pieces of oil filled rock) o Special Core studies 33
  • 34. Define the size of the reservoir 3.4 Miles 3.2 Miles Oyster Bayou Oyster Bayou Structural Surface of E-W A-A*Section of 3-D Top A1 Porosity Model A mature oil field has a lot of wells, which provides detailed knowledge of reservoir size 34
  • 35. Define target oil volume Oil Produced Original Reservoir Size Oil In Remaining Place Oil Volume Oil Saturation Original Oil in Place – Oil Produced = Size of Reservoir x Current Oil Saturation = Remaining Oil Volume Remaining Oil Volume Using two proven methodologies provides us with a high degree of confidence with a relatively small range of outcomes. 35
  • 36. Will CO2 recover additional oil? At Microscopic Level Depends on how well CO2 mixes with oil % Oil Recovery Composition of oil, pressure and temperature of reservoir Estimated MMP to occur @ 2400 psig determine mixing characteristics Recovery = the % of oil recovered Minimal Miscibility Pressure (MMP) = pressure where CO2 & oil mix together completely 36
  • 37. Contacting oil with CO2 Injector Producer CO2 Volumetric Sweep Efficiency is the volume of rock contacted by CO2 The greater the volume of reservoir contacted by CO2, the greater the oil recovery (larger the volumetric sweep efficiency) Historical waterflood performance is a predictor of sweep efficiency 37
  • 38. How Much Oil Does CO2 Recover? CO2 EOR Delivers Almost as Much Production as Primary or Secondary Recovery(1) Tertiary Remaining Oil Recovery (CO2 EOR) ~17% Secondary Recovery (waterfloods) Primary ~18% Recovery ~20% Volumetric Sweep x Displacement Efficiency(2) = Recovery (1) Recovery of Original Oil in Place based on history at Little Creek Field. (2) % of oil displaced when contacted by CO2, which is influenced by MMP and rock heterogeneity. 38
  • 39. How do we predict oil rates? CO2 Injection Rates drive the Speed of Oil Recovery The more CO2 injected, the faster the oil comes out 39
  • 40. Actual Industry Recovery Curves Range of Recovery 10%-18% 40
  • 41. Actual Curves – Denbury Mature Fields Range of Recovery 11%-20+% 41
  • 42. How do we determine peak oil production rate? • Pace of capital development drives peak oil rate • Number of patterns or well activities • Pattern performance becomes additive 2012 Activity Tinsley 42
  • 43. Oil Production Curves CO2 EOR Production Tinsley Eucutta Soso Delhi 43
  • 44. How do we know if a CO2 flood is working? Production Well Profile Log Injection Profile Log A-4 CO2 Injection A-4L A-5 Injecting 26.5 MMCFD @ 1600 psi 21 perforations 44
  • 45. Is the CO2 working efficiently? Measure the efficiency of the CO2 injected - Oil recovery per MCF injected 45
  • 46. Is the CO2 working efficiently? Measure the efficiency of the CO2 Produced - Gas/Oil Ratio (GOR) gives indication of processing efficiency 46
  • 47. Repeatable Process Variables we will continue Size of Field to encounter as we expand operating areas Tools, Character Process, Field of Rock Equipment, Locations Technical Knowledge Constants that make the process successful and repeatable 47
  • 48. Why is CO2 EOR our core focus? ● High Confidence of Oil Target  Nearly 70 million barrels produced by Denbury to date  Net upward adjustments to reserves-to-date ● CO2 Flooding Recovers Oil (CO2 ♥’s Crude Oil)  First CO2 EOR production was in 1972  Over 1.5 billion barrels produced to date in the US(1)  Current estimated production in the US is ~284 MBbls/d(2) ● A Very Repeatable Process with a lot of Running Room  Up to 10 Billion Barrels Recoverable with CO2 EOR in our two operating areas  Over 800 Million Barrels of CO2 EOR potential in our portfolio today (1) Oil & Gas Journal, Dec. 7, 2009 (2) Oil & Gas Journal, July 2, 2012 48
  • 49. Step 4: CO2 Strategy Benefits CO2 Strategy Benefits ● After the CO2 EOR process is completed, the CO2 is stored in the geological formation that trapped the oil originally ● Oil production in these domestic fields enriches the local economy, royalty owners and Denbury shareholders while reducing the need for imported oil 49
  • 50. CO2 EOR – A Better Mousetrap CO2 EOR Shale Plays Proof of New Basin None $$$$$ Competition for Services Minor Heavy Known Oil Target Yes No Tighter range of outcomes early Wider range of outcomes early in Predictable Type Curve in play. Learning applicable to play. Range declines with analogous fields learning curve Precise Timing of Use type curve once established More Difficult Production Response (2-3 years) $ Profit / $ Invested Higher Lower – “Treadmill” % Crude Nearly 100% Lower – variable by basin None until clear production Book surrounding PUD’s after Reserve Booking response; incremental adds drilling well follow Existing oil fields store CO2 with a Large footprint with large Environmental Impact minimal footprint and little use of amounts of water and chemicals natural resources used for fracturing wells Lower Finding & Development Higher Finding & Development Total Costs costs; Higher Operating Costs costs; Lower Operating Costs 50
  • 51. CO2 EOR Fields Overview
  • 52. Strategy: Tertiary Operations ● Safety & Environment ● Operational excellence  Maximum production at optimum cost ● Maximize oil recovery from reservoir ● Convert resources to producing reserves  Project execution excellence  Long-term production growth ● People: Expertise in all aspects of CO2 lifecycle ● Improve returns on investment  Optimize life-cycle costs  New ideas/technology 52
  • 53. 2012 Highlights: Tertiary Operations Area of Operation Operational Highlight ● Booked initial reserves of ~43 MMBbls Hastings ● Strong initial production ● 2,794 BOPD in 3Q 2012 ● Booked initial reserves of ~14 MMBbls Oyster Bayou ● Encouraging early reservoir response ● 1,540 BOPD in 3Q 2012 ● Completed remediation work Tinsley ● Production growth Heidelberg CO2 ● Conformance challenges addressed Thompson ● Acquired new field; 30-60 MMBOE 3P CO2 EOR Reserves Webster ● Pending acquisition of new field; 60-75 MMBOE 3P CO2 EOR Reserves Hartzog Draw ● Pending acquisition of new field; 20-30 MMBOE 3P CO2 EOR Reserves 53
  • 54. 2013 Production Variables that influence 2013 EOR production ● Bell Creek  CO2 supply timing & volume from COP Lost Cabin  Pace of response to CO2 injection ● Heidelberg  New East Heidelberg flood performance (peak prod. rate per well) ● Hastings  Pace of oil response in downdip patterns  Response to added compression ● Oyster Bayou  Pace of oil response to CO2 injection ● Delhi  Response timing of newly developed areas  Date of reversionary interest 54
  • 56. Gulf Coast Region: Active CO2 Floods Tertiary Proved Reserves(1) Tinsley 250 Delhi Proved Reserves (MMBbls) Tinsley Hastings Jackson 200 Dome Oyster Bayou 150 Delhi Delhi Free State Pipeline Davis Tinsley (2) Quitman Heidelberg Martinville 100 Heidelberg Sandersville Lake Sonat Summerland Soso Cypress Creek Eucutta Yellow Creek MS Pipeline St. John Mature Fields 50 Brookhaven Cranfield Mallalieu LOUISIANA Olive Citronelle Little Creek - Smithdale McComb 99 00 01 02 03 04 05 06 07 08 09 10 11 12E Mature Fields TEXAS Heidelberg Green Pipeline Lockhart Crossing Conroe Donaldsonville Fig Ridge Oyster Thompson Bayou Hastings Hastings Area Oyster Bayou Cumulative Production 15 - 50 MMBoe 50 – 100 MMBoe > 100 MMBoe Denbury Owned Fields Fields Owned by Others – CO2 EOR Candidates 1) Proved reserves as of December 31st of each respective year, with the exception of 2012, which is an internal estimate as of 6/30/2012. 56
  • 57. Gulf Coast Tertiary Oil Production 40,000 Net Daily Tertiary Oil Production 35,000 30,000 25,000 Net BOPD 20,000 15,000 10,000 5,000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 57
  • 58. Hastings Field Net Daily Oil Production 3,500 3,000 2,500 TEXAS LOUISIANA Net BOPD 2,000 1,500 1,000 ─ Conventional Oil Production 500 ─ Tertiary Oil Production Green Pipeline 0 2009 2010 2011 2012 Hastings Tertiary Reserves & Investment(1) 6/30/12 Proved Cumulative PV-10 2P&3P Hastings Reserves Reserves Investment Proved Reserves Produced Remaining Recovered Value Remaining (MMBOE) (MMBOE) ($MM) ($MM) (MMBOE) <1 46 ($334) $1,005 24 (1) Data as of 6/30/12, unless otherwise noted; Prices at 6/30/12 were $95.67 / $3.19 58
  • 59. Hastings Field: 2013E Program Continue CO2 EOR Development; CapEx: ~$90 MM ● Hastings 3.5 miles  Production: Growth   CapEx: ~$90MM ● Finish developing Fault Blk “A”, begin wellwork and injection into Fault Blk “B” & “C” ● Drill ~16 wells ● Add compression: Q4 2012; Q3 2013 Fault Block A 2009-2013 4.5 Miles Fault Blocks B&C 2013-2014 Fault Blocks D-M 2014-2019 4,420 Acres 59
  • 60. Oyster Bayou Field Net Daily Tertiary Oil Production 1,800 1,600 1,400 1,200 TEXAS LOUISIANA Net BOPD 1,000 800 600 400 200 Green Pipeline 0 Oyster Bayou Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Tertiary Reserves & Investment(1) 3/31/12 Proved Cumulative PV-10 2P&3P Reserves Reserves Investment Proved Reserves Oyster Bayou Produced Remaining Recovered Value Remaining (MMBOE) (MMBOE) ($MM) ($MM) (MMBOE) <1 14 ($172) $510 11 (1) Data as of 6/30/12, unless otherwise noted; Prices at 3/31/12 were $98.15 / $3.76 60
  • 61. Oyster Bayou Field: 2013E Program Grow CO2 EOR Production; CapEx: ~$5 MM ● Oyster Bayou  Production: Growth throughout 2013   CapEx: ~$5MM ● Increase CO2 injection and water disposal 3.4 Miles 3.2 Miles 3,912 Acres 61
  • 62. Delhi Field 5,000 Net Daily Tertiary Oil Production Delhi 4,000 Jackson Net BOPD Dome 3,000 Delhi 2,000 Free State Pipeline 1,000 0 2010 2011 2012 2013 Sonat MS Pipeline Tertiary Reserves & Investment(1) 12/31/11 Proved Cumulative PV-10 2P&3P Reserves Reserves Investment Proved Reserves Produced Remaining Recovered Value Remaining (MMBOE) (MMBOE) ($MM) ($MM) (MMBOE) 2 26 ($177) $1,020 8 (1) Data as of 6/30/12, unless otherwise noted; SEC prices at 12/31/11 were $96.19 / $4.163 62
  • 63. Delhi Field: 2013E Program Continue Field Development, CapEx: ~$40 MM ● Production: Growth  until reversionary interest reached in ~late 2013  Net Revenue Interest (NRI) changes from ~76% to ~57% ● Impact is ~ 1,000 – 1,500 BOPD when NRI changes ● CapEx: ~$40 MM  Pattern optimization ● (Facility expansion, Drill ~ 15 wells) 2012 Activity Pilot Area 2011 Activity 2010 Activity 2013 Activity 63
  • 64. Heidelberg Field Net Daily Tertiary Oil Production 4,500 4,000 Jackson Heidelberg 3,500 Dome 3,000 Net BOPD 2,500 2,000 Free State Pipeline 1,500 Heidelberg 1,000 500 0 2009 2010 2011 2012 Tertiary Reserves & Investment(1) 12/31/11 Proved Cumulative PV-10 2P&3P Reserves Reserves Investment Proved Reserves Produced Remaining Recovered Value Remaining MISSISSIPPI (MMBOE) (MMBOE) ($MM) ($MM) (MMBOE) 2 30 $54 $930 12 (1) Data as of 6/30/12, unless otherwise noted; SEC prices at 12/31/11 were $96.19 / $4.163 64
  • 65. Heidelberg Field: 2013E Program Continued Field Development; CapEx: ~$120 MM ● Heidelberg  Production: Flat thru 3Q12  and Growth in 4Q12   East (Capex ~ $100 MM): 2013 ● Expand Eutaw & Christmas zone development Activity  West (Capex ~ $20 MM) East Heidelberg Eutaw 2013 Activity East Heidelberg Christmas 65