Denbury Resources, Inc Q1 2009 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2009-05-05 15:02:18.0

Tags: Carbon Dioxide, Call Transcript, Earnings, Point, Pricing, Marketing Research, Marketing, Seeking Alpha, Denbury Resources Inc.

Question-and-Answer Session

Operator

(Operator Instructions) The first question comes from [Scott Billmouth].

Unidentified Analyst

Hey, guys. Quick question, can you give some guidance on the tertiary production ramp up throughout the year?

Tracy Evans

Well, we are keeping our average rate confirmed at 24,500 barrels per day and the actual forecast actually was relatively flat during the first part of the year with a ramp up during the third and fourth quarters. So we are probably slightly ahead of schedule, but until we see more confirmation of maintaining above schedule we just don't feel comfortable increasing our average rate at this point in time.

Unidentified Analyst

And the drivers of the back half of the year are obviously Heidelberg coming online and what else?

Tracy Evans

Cranfield and Heidelberg are two areas that we expect to see, relatively on a percentage basis, ramp ups in production and then also Lockhart as well, and Tinsley also. We expect it to continue to ramp up.

Mark Allen

It is a pretty proportional increase each quarter at this point. It's not too far from being a straight line.

Operator

Your next question comes from the line of Nicholas Pope.

Nicholas Pope - Dahlman Rose & Company

When you look at pricing realizations, I guess what we are all seeing on the gas side for Barnett and what do you all think that is going to be going forward here for the rest of the year?

Phil Rykhoek

We have still been running $0.75 to $1 in the Barnett; it really hasn't improved too much even though prices have come down. So at this point you just have to assume it's going to stay at that level.

Nicholas Pope - Dahlman Rose & Company

All right. Just jumping around here, but looking at Mallalieu, I guess the operational issues that you all have been seeing there, do you all expect it to kind of flatten out at some point? When do you all expect to see Mallalieu kind of responding to some of the work you are all doing their on the surface side?

Tracy Evans

The issue that we have there is, obviously, we've reached recycle capacity at the facility. So at that point in time you can only handle a fixed amount of CO2 and so we have to manage that on a daily basis of bringing wells out or shutting wells in to maintain a relatively constant CO2 rate there.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement