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Denbury (DEN) Enters Accord to Acquire Oil Fields in Wyoming

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Denbury Inc. recently announced an accord to acquire 100% working interests in two oil fields in Freemont County, WY. The independent oil and natural gas company has estimated the cash transaction value of the deal at $12 million.

Along with the purchase of related surface facilities, the agreement with an affiliate of Devon Energy Corporation (DVN - Free Report) comprises the acquisition of pipeline that spans over 46 miles to the oil fields and transports carbon dioxide. Notably, Denbury expects the completion of the acquisition in the first quarter of 2021.

The two oil fields in discussion are Big Sand Draw and Beaver Creek. While the discovery of the Big Sand Draw was made in 1918, the Beaver Creek was found in 1938. Particularly, the Big Sand Draw oil field witnessed the initiation of carbon dioxide flooding system in 2014, while the Beaver Creek saw the initiation of the system in 2008.

In the third quarter of 2020, oil fields recorded net production of roughly 2,800 barrels of oil equivalent per day. Of the total production, oil comprised 85%. The company also estimated net proved reserves from the oil fields at 13.7 million barrel of oil equivalent, considering Dec 1, 2020, oil and natural gas futures strip prices.

Currently, Denbury carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include DCP Midstream, LP and HighPoint Resources Corporation . Both the stockssport aZacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DCP Midstream has seen an upward estimate revision for 2020 earnings in the past 30 days.

HighPoint is likely to see earnings growth of 167.5% in 2020.

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