Denbury Resources is bullish on tertiary recovery operations from mature oil fields and is building a CO2 pipeline from Louisiana to Texas. Denbury Resources Inc. is going to build a new CO2 pipeline from Donaldsonville, LA to Hastings Field named the Green Pipeline. The Hasting Field is the site of a mature oil field between between Houston, TX and Alvin, TX.

Denbury Resources purchased the Hastings Field from Venoco in September 2008. The field is expected to be a excellent candidate for enhanced oil recovery using CO2. The Green Pipeline will also route to the Oyster Creek area near Freeport, Texas. Denbury has purchased fields in this area.

The Hastings Field was a very productive field and was a primary contributor to Amoco’s growth. Today, Denbury estimates that the field has from 50 to 80 MMBbl reserve potential from CO2 tertiary flooding. This is greater than any existing field the company currently operates.

Denbury is the largest oil producer in Mississippi. The company has existing CO2 pipelines in Louisiana and Mississippi and has long been bullish on EOR with CO2. The Green Pipeline will transport CO2 from the Faustina gasification plant in Donaldsonville, Louisiana to the Oyster Creek and Hastings Fields for use in enhanced oil recovery.

Denbury has entered into CO2 offtake agreements with three Coal-To-Liquid plants in the Gulf Coast: Faustina and two other gasification projects. Denbury believes that having access to CO2 is strategic to reaching their objectives.