Denbury Resources/Wapiti Energy Acquire Working Interest, Plan Pipeline

January 2010 Vol. 237 No. 1

Denbury Resources and Wapiti Energy have entered into an agreement to purchase a 95% working interest in the Conroe Field.

The company says the Conroe Field has an estimated net potential from CO2 tertiary recovery of 125 MMbbls, depending on the ultimate recovery factor. Preliminary estimates indicate the acquired interests contain an estimated 20 MMboe of proved conventional reserves, with an estimated value of $413 million.

Plans call for the company to build an 80-mile pipeline to transport CO2 from the Green Pipeline stretching from Donaldsonville, LA to Houston, to the Conroe Field.