Independent oil and gas company Denbury Resources Inc. (DNR) said Thursday that the company and Encore Energy Partners LP (ENP) have terminated the previously announced consideration of a sale or other asset transaction regarding the Elk Basin Field.
Denbury said it will now focus on its previously announced intent to sell its interest in Encore Energy Partners GP LLC, the general partner of ENP, and all or part of the ENP common units owned by the company. Denbury is the owner of Encore Energy Partners GP LLC by virtue of its acquisition of Encore Acquisition Co. in March 2010. The company owns about 46% of the common units of ENP.
The process for the sale or other asset transaction for the Elk Basin Field had been initiated in light of the substantial future capital requirements to flood the Elk Basin field as a possible CO2 tertiary project. Denbury and ENP noted that no agreement could be reached on the value of the potential tertiary reserves.
Plano, Texas-based Denbury is the largest oil and natural gas operator in Mississippi, and owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River, along with operating acreage in the Barnett Shale play near Fort Worth, Texas. The company has spent the past decade learning how to inject carbon dioxide into old oil fields to boost production.
Carbon dioxide injection is the most recent tertiary oil method and is seen as extremely effective. Denbury is looking to shift more of its annual production to tertiary CO2 oil production, as its CO2 tertiary oil reservoirs have historically generated higher rate of returns than those of its traditional oil properties.
ENP and Denbury also said that Denbury has appointed six additional directors to the board of Encore Energy Partners. Four of the new directors are members of Denbury senior management. They are Phil Rykhoek- Denbury's Chief Executive Officer; Tracy Evans - President and Chief Operating Officer, Bob Cornelius - Senior Vice President, Operations, and Mark Allen - Senior Vice President and Chief Financial Officer.
Additionally, Martin White and David Baggett, both independent directors, were appointed to the board of Encore Energy Partners.
White and Baggett previously served on the board of the general partner of Genesis Energy, L.P. (GEL) between March 2008 and February 2010, at the time when Denbury owned the general partner of that entity.
White retired from Occidental Chemical Corp. in 2006 after most recently serving as the vice president of that company's joint venture, OxyVinyls, since its formation in May 1999.
Baggett is the founder and managing partner of financial consulting firm Opportune LLP, which was formed in June 2005. He was a private investor from April 2003 until June 2005. Prior to that, he served in various positions at American Plumbing and Mechanical, including as President, Chief Operating Officer, Chief Financial Officer and board member.
In Thursday's regular trading session, DNR is trading at $15.28, up $0.18 or 1.19% on a volume of 0.61 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.