Denbury Resources to draw on existing credit facility for acquisitions

By Sara Rosenberg

New York, June 28 - Denbury Resources Inc. plans on using borrowings under its existing credit facility to fund the purchase of the 57.5% working interest it does not already own in the Riley Ridge Federal Unit located in Wyoming and an approximate 33% working interest in additional acres of mineral leases adjoining the Riley Ridge Unit, according to a news release.

The price for the assets is $191 million, consisting of a $176 million payment at closing and a $15 million contingent payment to be paid at the time the gas processing facility is operational and meeting specific performance conditions.

Closing is expected in late July subject to satisfactory completion of customary due diligence review.

Denbury Resources is a Plano, Texas-based independent oil and natural gas company.

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