Denbury Resources Inc. (DNR), as the owner of Encore Energy Partners GP LLC, the general partner of Encore Energy Partners LP (ENP), together with ENP, announced that Denbury and ENP have terminated the prior announced consideration of a sale or other asset transaction between Denbury and ENP regarding Elk Basin field.
Denbury Resources said this process had been initiated in light of the substantial future capital requirements to flood that field as a possible CO2 tertiary project. No deal could be reached on the value of the potential tertiary reserves.
Also, Denbury said it would now focus on its previously announced intent to sell its interest in the General Partner and all or part of the ENP common units that Denbury owns.
Additionally, ENP and Denbury announced that Denbury has appointed 6 additional directors to the board of the General Partner. Four of the new directors are members of Denbury senior management: Phil Rykhoek, Tracy Evans, Bob Cornelius and Mark Allen. In addition, Martin White and David Baggett, both independent directors, have been appointed to the board.
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