Denbury Resources Inc. and Encore Energy Partners LP have ended plans to exchange assets under a deal that was to have supported a carbon dioxide-injection project at Elk basin oil field on the Wyoming-Montana border.
Denbury in March acquired Encore Acquisition and became owner of the Encore general partner, Encore Energy Partners GP LLC, as well as of about 46% of Encore stock.
Denbury estimates probable and possible Elk basin reserves recoverable via tertiary recovery at 37 million bbl of oil.
"This process had been initiated in light of the substantial future capital requirements to flood that field as a possible CO2 tertiary project," Denbury said in a statement announcing termination of the asset exchange. "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 [Encore] common units that Denbury owns," the company said.
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