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8-K - FORM 8-K - Encore Energy Partners LP | h75856e8vk.htm |
Exhibit 99.1
ENCORE ENERGY PARTNERS LP
DENBURY RESOURCES INC.
DENBURY
PROVIDES ENP UPDATE
P R E S S R E L E A S E
News Release
Released at 7:30 AM CDT
Released at 7:30 AM CDT
DALLAS, Sept. 2, 2010 (BUSINESS WIRE) Denbury Resources Inc. (NYSE: DNR) (Denbury), as the
owner of Encore Energy Partners GP LLC (the General Partner), the general partner of Encore
Energy Partners LP (NYSE: ENP) (ENP), together with ENP, today announced that Denbury and ENP
have terminated the previously announced consideration of a sale or other asset transaction between
Denbury and ENP regarding Elk Basin field. This process had been initiated in light of the
substantial future capital requirements to flood that field as a possible CO2 tertiary
project. No agreement could be reached on the value of the potential tertiary reserves. Denbury
will 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.
ENP and Denbury also announced that Denbury has appointed six 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 G. White and David C.
Baggett, both independent directors, have been appointed to the board. Messrs. White and Baggett
previously served on the board of the general partner of Genesis Energy, L.P. (AMEX: GEL) between
March 2008 and February 2010, a period during which Denbury owned the general partner of that
entity.
Martin White retired in 2006 from Occidental Chemical Corporation (OxyChem) after most
recently serving as Vice President of OxyChems joint venture, OxyVinyls, a position he held since
the formation of OxyVinyls in May 1999. David C. Baggett is the founder and managing partner of
Opportune LLP, a financial consulting firm formed in June 2005. From April 2003 until June 2005 he
was a private investor. From October 1998 until April 2003, he held various positions at American
Plumbing and Mechanical, including President, Chief Operating Officer, Chief Financial Officer and
board member.
About the Partnership
By virtue of Denburys acquisition of Encore Acquisition Company on March 9, 2010, Denbury now
owns the general partner of ENP and approximately 46% of the common units of ENP. ENPs assets
consist primarily of producing and non-producing oil and natural gas properties in the Big Horn
Basin in Wyoming and Montana, the Williston Basin in North Dakota and Montana, the Permian Basin in
West Texas and New Mexico, and the Arkoma Basin in Arkansas and Oklahoma.
Contact Information
Denbury Resources Inc.
Phil Rykhoek, CEO
Mark Allen, Sr. VP and CFO
972-673-2000
Phil Rykhoek, CEO
Mark Allen, Sr. VP and CFO
972-673-2000