Denbury efforts doing well, mgr. says

Published 5:00 am Thursday, July 2, 2009

Denbury Resources’ oil recovery activities continue to go strongin the area and the company is looking to enhance its operationsacross the southern region of the United States, Denbury’s areaoperations manager said Wednesday.

Southwest Mississippi Area Operations Manager Billy Biggersupdated Brookhaven Kiwanis Club members on company activities, itshistory and plans for the future. He said the company uses carbondioxide to get oil out of old fields.

“We basically take old oil fields and bring them back to life,”said Biggers, who referred to the process as tertiary, or thirdlevel oil recovery.

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Biggers said primary oil exploration efforts usually collectabout 20 percent of oil from a formation while secondary methods,which utilize waterfloods, recover about 18 percent. Tertiaryefforts recover another approximately 17 percent.

Denbury, whose corporate headquarters is in Plano,Texas, hasbeen in Southwest Mississippi since the mid 1980s. It now operatesseveral fields in Mississippi and is the largest user of carbondioxide in the state.

Biggers touted company efforts to build an estimated $750million pipeline into Texas. The company Web site said the linewill be under construction into 2010 and is expected to carrycarbon dioxide, both natural and man-made, to a field near Houstonfor company operations there.

Biggers also briefly discussed the company’s economic impact onthe Southwest Mississippi area.

In the area, Biggers said the company employs approximately 135and has 100 to 300 contractors working on any given day. When askedby a club member, he did not have data on royalties paid to arealandowners.

Biggers said Denbury is producing about 21,000 barrels of oilequivalent (BOE) a day in the Southwest Mississippi. He said thecompany’s Brookhaven field is doing “extremely well,” as areseveral other areas where the company is currently operating.

“The Brookhaven, Mallalieu and Little Creek fields have beengreat CO2 floods for Denbury,” Biggers said.