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<div align="Center" style="font-size: 10pt; margin-top: 0pt"><b><i></i></b>
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<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Note 1. Basis of Presentation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Interim Financial Statements</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The accompanying unaudited condensed consolidated financial statements of Denbury Resources
Inc. and its subsidiaries have been prepared in accordance with the instructions to Form 10-Q and
do not include all of the information and footnotes required by accounting principles generally
accepted in the United States for complete financial statements. Unless indicated otherwise or the
context requires, the terms “we,” “our,” “us,” “Denbury” or “Company” refer to Denbury Resources
Inc. and its subsidiaries. These financial statements and the notes thereto should be read in
conjunction with our Annual Report on Form 10-K for the year ended December 31, 2008. Any
capitalized terms used but not defined in these Notes to Unaudited Condensed Consolidated Financial
Statements have the same meaning given to them in the Form 10-K.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Accounting measurements at interim dates inherently involve greater reliance on estimates than
at year end and the results of operations for the interim periods shown in this report are not
necessarily indicative of results to be expected for the fiscal year. In management’s opinion, the
accompanying unaudited condensed consolidated financial statements include all adjustments (of a
normal recurring nature) necessary to present fairly the consolidated financial position of Denbury
as of June 30, 2009, the consolidated results of its operations for the three and
six month periods ended June 30, 2009 and 2008 and cash flows
for the six months ended June 30, 2009 and 2008. Certain prior period items have been reclassified
to make the classification consistent with the classification in the most recent quarter. We have
evaluated events that occurred subsequent to June 30, 2009
through August 10, 2009, the financial
statement issuance date.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Net Income (Loss) Per Common Share</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Basic net income (loss) per common share is computed by dividing net income by the weighted
average number of shares of common stock outstanding during the period. Diluted net income per
common share is calculated in the same manner but also considers the impact on net income and
common shares for the potential dilution from stock options, stock appreciation rights (“SARs”),
non-vested restricted stock and any other convertible securities outstanding. For the three and
six month periods ended June 30, 2009 and 2008, there were no adjustments to net income (loss) for
purposes of calculating diluted net income (loss) per common share. The following is a
reconciliation of the weighted average common shares used in the basic and diluted net income
(loss) per common share calculations for the three and six month periods ended June 30, 2009 and
2008.
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<td width="52%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Three Months Ended</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Six Months Ended</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">June 30,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">June 30,</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
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<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average common shares — basic
</div></td>
<td> </td>
<td> </td>
<td align="right">246,084</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">243,623</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">245,830</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">243,189</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Potentially dilutive securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Stock options and SARs
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,389</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,043</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Restricted stock
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,389</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,371</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average common shares -
diluted
</div></td>
<td> </td>
<td> </td>
<td align="right">246,084</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">252,401</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">245,830</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">252,603</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
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</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The weighted average common shares — basic amount excludes 2,928,022 shares at June 30, 2009
and 2,668,538 shares at June 30, 2008, of non-vested restricted stock that is subject to future
vesting over time. As these restricted shares vest, they will be included in the shares
outstanding used to calculate basic net income (loss) per common share (although all restricted
stock is issued and outstanding upon grant). For purposes of calculating weighted average common
shares — diluted during the three and six months ended June 30, 2008, the non-vested restricted
stock is included in the computation using the treasury stock method, with the proceeds equal to
the average unrecognized compensation during the period, adjusted for any estimated future tax
consequences recognized directly in equity.
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<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For the three and six months ended June 30, 2008, stock options and SARs to purchase
approximately 49,000 and 691,000 shares of common stock, respectively, were outstanding but
excluded from the diluted net income per common share calculations, as the exercise prices of the
options exceeded the average market price of the Company’s common stock during these periods and
would be anti-dilutive to the calculations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For the three and six months ended June 30, 2009, all outstanding stock options, SARs and
non-vested restricted stock were excluded from the calculation of weighted average
common shares - diluted as their impact would have been antidilutive to the net losses incurred
during those periods. During the three and six months ended June 30, 2009, 11.2 million and 11.1
million, respectively, of stock options and SARs were excluded from the calculation of weighted average common shares - diluted and for both 2009 periods, 2.8 million shares of non-vested restricted stock were excluded.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>CO</i><sub style="font-size: 85%; vertical-align: text-bottom">2</sub><i> Pipelines</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> pipelines are used for transportation of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> to our tertiary
floods from our CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> source field located near Jackson, Mississippi. We are continuing
expansion of our CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> pipeline infrastructure with several pipelines currently under
construction. At June 30, 2009 and December 31, 2008, we had $761.7 million and $402.0 million of
costs, respectively, related to pipeline construction in progress, recorded under “CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub>
properties, equipment and pipelines” in our Unaudited Condensed Consolidated Balance Sheets. These
costs of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> pipelines under construction were not being depreciated at June 30, 2009 or
December 31, 2008. Depreciation will commence as each pipeline is placed into service. Each
pipeline is depreciated on a straight-line basis over its estimated useful life as determined for
GAAP purposes, which range between 20 to 30 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Goodwill</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Goodwill represents the excess of the purchase price over the estimated fair value of the net
assets acquired in the acquisition of a business. Goodwill is not amortized, but rather it is
tested for impairment annually and also when events or changes in circumstances indicate that the
fair value of a reporting unit with goodwill has been reduced below carrying value. The impairment
test requires allocating goodwill and other assets and liabilities to reporting units. In the case
of Denbury, we have only one reporting unit. The fair value of the reporting unit is determined
and compared to the book value of the reporting unit. If the fair value of the reporting unit is
less than the book value, including goodwill, the recorded goodwill is impaired to its implied fair
value with a charge to operating expense.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Recently Adopted Accounting Pronouncements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Business Combinations. </i>In December 2007, the FASB issued Statement of Financial Accounting
Standards (“SFAS”) No. 141 (Revised 2008), “Business Combinations.” SFAS No. 141(R) establishes
principles and requirements for how an acquirer recognizes and measures in its financial statements
the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the
acquiree and the goodwill acquired. SFAS No. 141(R) also establishes disclosure requirements to
enable the evaluation of the nature and financial effects of the business combination. We adopted
this statement on January 1, 2009. We have applied SFAS 141(R) to an acquisition that we made
during the first quarter (see Note 2, “Acquisitions and Divestitures”).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Equity Method Accounting. </i>In November 2008, the FASB reached a consensus on Emerging Issues
Task Force (“EITF”) Issue 08-6, “Equity Method Investment Accounting Considerations” which was
issued to clarify how the application of equity method accounting will be affected by SFAS No.
141(R) and SFAS No. 160, “Non-Controlling Interests in Consolidated Financial Statements — an
amendment of ARB No. 51.” EITF 08-6 clarifies that an entity shall continue to use the cost
accumulation model for its equity method investments. It also confirms past accounting practices
related to the treatment of contingent consideration and the use of the impairment model under
Accounting Principles Board Opinion No. 18, “The Equity Method of Accounting for Investments in
Common Stock”. Additionally, it requires an equity method investor to account for a share issuance
by an investee as if the investor had sold a proportionate share of the investment. This Issue was
effective January 1, 2009, applies prospectively and did not have any impact on our financial
position or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Noncontrolling Interests. </i>In December 2007, the FASB issued SFAS No. 160 which establishes
accounting and reporting standards for ownership interests in subsidiaries held by parties other
than the parent, the amount of consolidated net income attributable to the parent and to the
noncontrolling interest, changes in a parent’s ownership
interest, and the valuation of retained
noncontrolling equity investments when a subsidiary is deconsolidated.
SFAS No. 160 also establishes disclosure requirements that clearly identify and distinguish
between the interests of the parent and the interests of the noncontrolling owners. We adopted
SFAS No. 160 on January 1, 2009. Since we currently do not have any noncontrolling interests, the
adoption of SFAS No. 160 did not have any impact on our financial position or results of
operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Disclosures about Derivative Instruments and Hedging Activities. </i>In March 2008, the FASB
issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities—an
amendment of SFAS No. 133.” SFAS No. 161 requires entities that utilize derivative
instruments to provide qualitative disclosures about their objectives and strategies for using
such instruments, as well as any details of credit-risk-related contingent features contained
within derivatives. SFAS No. 161 also requires entities to disclose additional information
about the amounts and location of derivatives located within the financial statements, how the
provisions of SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,”
have been applied, and the impact that hedges have on an entity’s financial position,
financial performance, and cash flows. We adopted the disclosure requirement of SFAS No. 161
beginning January 1, 2009 (see Note 6, “Derivative Instruments and Hedging Activities”). The
adoption of this statement did not have any impact on our financial position or results of
operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Fair Value Measurements. </i>On February 12, 2008, the FASB issued FASB Staff Position (“FSP”)
SFAS No. 157-2 “Effective Date of FASB Statement No. 157,” which delayed the effective date of SFAS
No. 157, “Fair Value Measurements,” for all nonfinancial assets and nonfinancial liabilities,
except those that are recognized or disclosed at fair value in the financial statements on a
recurring basis (at least annually). We adopted FSP FASB No. 157-2 on January 1, 2009. The
adoption of this FSP did not have any impact on our financial position or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2009, the FASB issued three FASB Staff Positions to provide additional
application guidance and enhance disclosures regarding fair value measurements and impairments
of securities. FSP SFAS No. 157-4, “Determining Fair Value When the Volume and Level of
Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions
That Are Not Orderly,” provides guidelines for making fair value measurements more consistent
with the principles presented in SFAS No. 157. FSP SFAS No. 107-1 and APB 28-1, “Interim
Disclosures about Fair Value of Financial Instruments,” enhances consistency in financial
reporting by increasing the frequency of fair value disclosures. FSP SFAS No. 115-2 and SFAS
No. 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments,” provides
additional guidance designed to create greater clarity and consistency in accounting for and
presenting impairment losses on securities. These three FSPs are effective for interim and
annual periods ending after June 15, 2009. The adoption of these FSPs enhanced our interim
financial statement disclosures but did not have any impact on our financial position or
results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Subsequent Events. </i>In May 2009, the FASB issued SFAS No. 165, “Subsequent Events” to
establish accounting standards for events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. SFAS No. 165 does not significantly
change current practice. The new standard does require companies to disclose the date through
which subsequent events were evaluated and whether or not that date was the date the financial
statements were issued or available for issuance. The Company adopted SFAS No. 165 upon issuance.
This standard did not have any impact on the Company’s financial position or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Recently Issued Accounting Pronouncements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Modernization of Oil and Gas Reporting. </i>On December 31, 2008, the Securities and Exchange
Commission adopted major revisions to its rules governing oil and gas company reporting
requirements. These include provisions that permit the use of new technologies to determine proved
reserves, and that allow companies to disclose their probable and possible reserves to investors.
The current rules limit disclosure to only proved reserves. The new disclosure requirements also
require companies that have an audit performed on their reserves to report the independence and
qualifications of the auditor of the reserve estimates, and to file reports when a third party
reserve engineer is relied upon to prepare reserve estimates. The new rules also require that oil
and gas reserves be reported and the full cost ceiling value calculated using an average price
based upon the prior twelve-month period. The new oil and gas reporting requirements are effective
for annual reports on Form 10-K for fiscal years ending on or after December 31, 2009, with early
adoption not permitted. We are currently evaluating the impact the new rules may have on our
financial condition or results of operations.
</div>
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<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>FASB Accounting Standards Codification</i><sup style="font-size: 85%; vertical-align: text-top"><i>TM</i></sup><i>.</i><sup style="font-size: 85%; vertical-align: text-top"> </sup>In June 2009, the FASB issued
SFAS No. 168, “The FASB Accounting Standards Codification<sup style="font-size: 85%; vertical-align: text-top">TM</sup> and the Hierarchy of
Generally Accepted Accounting Principles”, which becomes effective for financial statements issued
for interim and annual periods ending after September 15, 2009. SFAS No. 168 replaces SFAS No.
162, “The Hierarchy of Generally Accepted Accounting Principles”. The FASB Accounting Standards
Codification<sup style="font-size: 85%; vertical-align: text-top"> TM</sup> will become the source of U.S. GAAP recognized by the FASB for
nongovernmental entities. The Company will apply this standard to our financial statements issued
for the nine months ended September 30, 2009. This standard will not have any impact on the
Company’s financial position or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Transfers of Financial Assets. </i>In June 2009, the FASB issued SFAS No. 166, “Accounting for
Transfers of Financial Assets — an amendment to FASB Statement No. 140.” SFAS No. 166 removes the
concept of a qualifying special-purpose entity (“QSPE”) from FASB Statement No. 140, “Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities a replacement of
FASB Statement 125”, creates a new unit of account definition that must be met for transfers of
portions of financial assets to be eligible for sale accounting, clarifies the derecognition
criteria for a transfer to be accounted for as a sale, changes the amount of recognized gains or
losses on the transfer of financial assets accounted for as a sale when beneficial interests are
received by the transferor and introduces new disclosure requirements. SFAS No. 166 is effective
for us beginning January 1, 2010. We do not anticipate the adoption of SFAS No. 166 will have a
material impact on our financial condition or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Consolidation of Variable Interest Entities. </i>In June 2009, the FASB issued SFAS No. 167,
“Amendments to FASB Interpretation
<font style="white-space: nowrap">No. 46(R).</font>” This standard eliminates the exemption in FASB
Interpretation No. 46(R) for QSPEs, introduces a new approach for determining who should
consolidate a variable interest entity and changes the requirement as to when it is necessary to
reassess who should consolidate a variable-interest entity. This standard is effective for us
beginning January 1, 2010. We are currently evaluating the impact the new rule may have on our
financial condition or results of operations.
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 2. Acquisitions and Divestitures</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Hastings Field Acquisition</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During
November 2006, we entered into an agreement with a subsidiary of Venoco, Inc., that gave
us an option to purchase their interest in Hastings Field, a strategically significant potential
tertiary flood candidate located near Houston, Texas. We exercised the purchase option prior to
September 2008, and closed the acquisition during February 2009. As consideration for the option
agreement, during 2006 through 2008, we made cash payments totaling $50 million which we recorded
as a deposit. The purchase price of approximately $196 million, which was paid in cash, was
determined as of January 1, 2009 (the effective date) with closing on February 2, 2009. The deposit
plus purchase price, adjusted for interim net cash flows between the effective date and closing
date of the acquisition (including minor purchase price adjustments), totaled approximately $248.2
million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Under the terms of the agreement, Venoco, Inc., the seller, retained a 2% override and a
reversionary interest of approximately 25% following payout, as defined in the option agreement.
The Hastings Field proved reserves were not included in the Company’s year-end 2008 proved
reserves. We plan to commence flooding the field with CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> beginning in 2011, after
completion of our Green Pipeline currently under construction and construction of field recycling
facilities. Under the agreement, we are required to make aggregate net cumulative capital
expenditures in this field of approximately $179 million over the next six years cumulating as
follows: $26.8 million by December 31, 2010, $71.5 million by December 31, 2011, $107.2 million by
December 31, 2012, $142.9 million by December 31, 2013, and $178.7 million by December 31, 2014.
If we fail to spend the required amounts by the due dates, we are required to make a cash payment
equal to 10% of the cumulative shortfall at each applicable date. Further, we are committed to
inject at least an average of 50 MMcf/day of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> (total of purchased and recycled) in
the West Hastings Unit for the 90 day period prior to January 1, 2013. If such injections do not
occur, we must either (1) relinquish our rights to initiate (or continue) tertiary operations and
reassign to Venoco all assets previously purchased for the value of such assets at that time based
upon the discounted value of the field’s proved reserves using a 20% discount rate, or (2) make an
additional payment of $20 million in January 2013, less any payments made for failure to meet the
capital spending requirements as of December 31, 2012, and a $30 million payment for each
subsequent year (less amounts paid for capital expenditure shortfalls) until the CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub>
injection rate in the Hastings Field equals or exceeds the minimum required injection rate.
</div>
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<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     This acquisition of Hastings Field qualifies as a business under SFAS No. 141(R), “Business
Combinations.” As such, we estimated the fair value of this property as of the acquisition date,
as defined in SFAS No. 141(R) to be the date on which the acquirer obtains control of the acquiree,
which for this acquisition is February 2, 2009 (the closing date). SFAS No. 157, “Fair Value
Measurements,” defines fair value as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date
(often referred to as the “exit price”). Further, SFAS No. 157 emphasizes that a fair value
measurement should be based on the assumptions of market participants and not those of the
reporting entity. Therefore, entity-specific intentions should not impact the measurement of fair
value unless those assumptions are consistent with market participant views.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In applying these accounting principles we estimated that the fair value of these properties
on the acquisition date to be approximately $107.0 million. This measurement resulted in the
recognition of goodwill totaling $138.7 million. SFAS No. 141(R) defines goodwill as an asset
representing the future economic benefits arising from other assets acquired in a business
combination that are not individually identified and separately recognized. For this acquisition,
goodwill is the excess of the cash paid to acquire the Hastings Field over the acquisition date
estimated fair value. This resultant goodwill is due primarily to two factors. The first factor
is the decrease in the NYMEX oil and natural gas futures prices between the effective date of
January 1, 2009 and the acquisition date of February 2, 2009. The purchase agreement provided that
the Hastings reserves be valued using the NYMEX oil and gas futures prices on the effective date of
January 1, 2009. The second factor is the estimated fair value assigned to the estimated oil
reserves recoverable through a CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> enhanced oil recovery (“EOR”) project. Denbury has one
of the few known significant natural sources of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> in the United States, and the
largest known source east of the Mississippi river. This source of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> that we own will
allow Denbury to carry out CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> EOR activities in this field at a much lower cost than
other market participants. However, SFAS No. 157 does not allow entity-specific assumptions in the
measurement of fair value. Therefore, we estimated the fair value of the oil reserves recoverable
through CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> EOR using an estimated cost of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> to other market participants.
This assumption of a higher cost of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> resulted in an estimated fair value of the
projected CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> EOR reserves that would not have been economically viable and therefore no
value has been assigned to undeveloped properties in this acquisition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of Hastings Field was based on significant inputs not observable in the market,
which SFAS No. 157 refers to as Level 3 inputs. Key assumptions include (1) NYMEX oil and natural
gas futures (this input is observable), (2) projections of the estimated quantities of oil and
natural gas reserves, (3) projections of future rates of production, (4) timing and amount of
future development and operating costs, (5) projected cost of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> to a market
participant, (6) projected recovery factors and, (7) risk adjusted discount rates. The fair value
of these properties was assigned to the assets and liabilities acquired, which included $107.0
million to evaluated properties in the full cost pool and $2.4 million (net) for land, oilfield
equipment and other related assets. Denbury applies SEC full cost accounting rules, under which
the acquisition cost of oil and gas properties are recognized on a cost center basis (country), of
which Denbury has only one cost center (United States). The goodwill of $138.7 million was
assigned to this single reporting unit. All of the goodwill is deductible for tax purposes as
property cost. This purchase price allocation is preliminary and subject to adjustment as the
final closing statement is not complete.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The transaction related costs (legal, accounting, due diligence, etc.) have been expensed in
accordance with the provisions of SFAS <font style="white-space: nowrap">No. 141(R).</font> We have not presented any pro forma information
for the acquired business as the pro forma effect was not material to our results of operations for
the three or six month periods ended June 30, 2009 or 2008.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Sale of Barnett Shale Assets</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In May 2009, we entered into an agreement to sell 60% of our Barnett Shale natural gas assets
to Talon Oil and Gas LLC, a privately held company, for $270 million (before closing adjustments).
In June 2009, we closed on approximately three-quarters of the sale with net proceeds (after
closing adjustments, but including the $10 million deposit) of $197.5 million. The agreement has
an effective date of June 1, 2009, and consequently operating net revenues after June 1, net of
capital expenditures, along with any other purchase price adjustments, were adjustments to the
selling price. We did not record a gain or loss on the sale in accordance with the full cost
method of accounting. The Company closed on the remaining portion of the sale on July 15, 2009
(see Note 9, “Subsequent Event”). We have not presented pro forma information for the disposal as
the pro forma effect was not material.
</div>
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<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
</div>
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<!-- Begin Block Tagged Note 3 - us-gaap:AssetRetirementObligationDisclosureTextBlock-->
<div style="font-family: ">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 3. Asset Retirement Obligations</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In general, our future asset retirement obligations relate to future costs associated with
plugging and abandonment of our oil, natural gas and CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> wells, removal of equipment and
facilities from leased acreage and land restoration. The fair value of a liability for an asset
retirement is recorded in the period in which it is incurred, discounted to its present value using
our credit adjusted risk-free interest rate, and a corresponding amount capitalized by increasing
the carrying amount of the related long-lived asset. The liability is accreted each period, and
the capitalized cost is depreciated over the useful life of the related asset.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the changes in our asset retirement obligations for the six
months ended June 30, 2009.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="5%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Six Months Ended</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">June 30, 2009</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance, beginning of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">45,064</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Liabilities incurred and assumed during period
</div></td>
<td> </td>
<td> </td>
<td align="right">2,638</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Revisions in estimated retirement obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">857</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Liabilities settled during period
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,511</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accretion expense
</div></td>
<td> </td>
<td> </td>
<td align="right">1,637</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Sales
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(838</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance, end of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">47,847</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2009, $1.6 million of our asset retirement obligation was classified in “Accounts
payable and accrued liabilities” under current liabilities in our Unaudited Condensed Consolidated
Balance Sheets. Liabilities incurred during the six month period ended June 30, 2009 are primarily
related to the Hastings Field acquisition and sales during the period are primarily related to the
Barnett Shale natural gas assets (see Note 2, “Acquisitions and Divestitures”). We hold cash and
liquid investments in escrow accounts that are legally restricted for certain of our asset
retirement obligations. The balances of these escrow accounts were $7.4 million at both June 30,
2009 and December 31, 2008 and are included in “Other assets” in our Unaudited Condensed
Consolidated Balance Sheets.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
</div>
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</html>
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<body>
<!-- Begin Block Tagged Note 4 - us-gaap:DebtDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 4. Notes Payable and Long-Term Indebtedness</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">June 30,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">December 31,</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">9.75% Senior Subordinated Notes due 2016
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">426,350</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Discount on Senior Subordinated Notes due 2016
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(28,566</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">7.5% Senior Subordinated Notes due 2015
</div></td>
<td> </td>
<td> </td>
<td align="right">300,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">300,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Premium on Senior Subordinated Notes due 2015
</div></td>
<td> </td>
<td> </td>
<td align="right">556</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">599</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">7.5% Senior Subordinated Notes due 2013
</div></td>
<td> </td>
<td> </td>
<td align="right">225,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">225,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Discount on Senior Subordinated Notes due 2013
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(728</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(826</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">NEJD financing — Genesis
</div></td>
<td> </td>
<td> </td>
<td align="right">172,163</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">173,618</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Free State financing — Genesis
</div></td>
<td> </td>
<td> </td>
<td align="right">78,260</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76,634</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior bank loan
</div></td>
<td> </td>
<td> </td>
<td align="right">45,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">75,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Capital lease obligations — Genesis
</div></td>
<td> </td>
<td> </td>
<td align="right">4,171</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,544</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Capital lease obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">2,484</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,705</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td> </td>
<td align="right">1,224,690</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">857,274</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less current obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">4,586</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,507</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Long-term debt and capital lease obligations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,220,104</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">852,767</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Issuance of 9.75% Senior Subordinated Notes due 2016</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On February 13, 2009, we issued $420 million of 9.75% Senior Subordinated Notes due 2016
(“2016 Notes”). The 2016 Notes, which carry a coupon rate of 9.75%, were sold at a discount
(92.816% of par), which equates to an effective yield to maturity of approximately 11.25%. The net
proceeds of $381.4 million were used to repay most of our then-outstanding borrowings under our
bank credit facility, which increased from the December 31, 2008 balance, primarily associated with
the funding of the Hastings Field acquisition (see Note 2, “Acquisitions and Divestitures”). In
conjunction with this debt offering we amended our bank credit facility in early February 2009,
which, among other things, allowed us to issue these senior subordinated notes.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, we issued an additional $6.35 million of the 2016 Notes to our founder, Gareth
Roberts, as part of a Founder’s Retirement Agreement. In connection with this issuance, we recorded
compensation expense of $6.35 million in General and administrative expense in our Unaudited
Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The 2016 Notes mature on March 1, 2016, and interest on the 2016 Notes is payable March 1 and
September 1 of each year beginning on September 1, 2009. We may redeem the 2016 Notes in whole or
in part at our option beginning March 1, 2013, at the following redemption prices: 104.875% after
March 1, 2013, 102.4375% after March 1, 2014, and 100%, after March 1, 2015. In addition, we may at
our option, redeem up to an aggregate of 35% of the 2016 Notes before March 1, 2012 at a price of
109.75%. The indenture contains certain restrictions on our ability to incur additional debt, pay
dividends on our common stock, make investments, create liens on our assets, engage in transactions
with our affiliates, transfer or sell assets, consolidate or merge, or sell substantially all of
our assets. The 2016 Notes are not subject to any sinking fund requirements. All of our
significant subsidiaries fully and unconditionally guarantee this debt.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Senior Bank Loan</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     To clarify that Denbury entities are allowed to guarantee obligations of other Denbury
entities, in May 2009 we amended our Sixth Amended and Restated Credit Agreement,
the instrument governing our Senior Bank Loan, to explicitly permit these guarantees and waive any
possible previous technical violations of this provision.
</div>
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<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009 we again amended our Senior Bank Loan agreement in connection with the sale of our Barnett Shale natural gas properties and (i) reduced our
borrowing base from $1.0 billion to $900 million and (ii)
allowed for an additional percentage of our forecasted production to
be hedged through June 30, 2009.
The amendment did not impact
the banks’ commitment amount, which remains at $750 million.
</div>
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 5. Related Party Transactions — Genesis</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Interest in and Transactions with Genesis</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Denbury’s subsidiary, Genesis Energy, LLC, is the general partner of, and together with
Denbury’s other subsidiaries, owns an aggregate 12% interest in Genesis Energy, L.P. (“Genesis”), a
publicly traded master limited partnership. Genesis’ business is focused on the mid-stream segment
of the oil and natural gas industry in the Gulf Coast area of the United States, and its activities
include gathering, marketing and transportation of crude oil and natural gas, refinery services,
wholesale marketing of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub>,<sub style="font-size: 85%; vertical-align: text-bottom"> </sub>and supply and logistic services.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We account for our 12% ownership in Genesis under the equity method of accounting as we have
significant influence over the limited partnership; however, our control is limited under the
limited partnership agreement and therefore we do not consolidate Genesis. Our investment in
Genesis is included in “Other assets” in our Unaudited Condensed Consolidated Balance Sheets.
Denbury received cash distributions from Genesis of $5.1 million and $2.8 million during the six
months ended June 30, 2009 and 2008, respectively. We also received $0.1 million during both the
six months ended June 30, 2009 and 2008 as directors’ fees for certain officers of Denbury that are
board members of Genesis. There are no guarantees by Denbury or any of its other subsidiaries of
the debt of Genesis or of Genesis Energy, LLC.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2009, the balance of our equity investment in Genesis was $78.9 million. Based on
quoted market values of Genesis’ publicly traded limited partnership units at June 30, 2009, the
estimated market value of our publicly traded common units of Genesis was approximately $51.2
million. Since the general partner units we hold are not publicly traded, there is not a readily
available market value for these units. Due to the capital market conditions during the latter
part of 2008 and in 2009, we have reviewed the value of our investment in Genesis as of June 30,
2009 for impairment. Based upon this review, which considered the current and future expected cash
flows of Genesis, we do not believe the investment balance is impaired.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Incentive Compensation Agreement</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In late December 2008, our subsidiary, Genesis Energy, LLC, entered into agreements with three
members of Genesis management, for the purpose of providing them incentive compensation, which agreements make them Class B Members in Genesis Energy, LLC. The compensation
agreements provide Genesis management with the ability to earn up to an approximate aggregate 17%
interest in the incentive distributions that Genesis Energy, LLC receives (commencing in 2009) from
Genesis. The percentage interest in the incentive distribution earned in any given period can vary
based upon the Cash Available Before Reserves (“CABR”) per unit as generated by Genesis (excluding
any transactions between Genesis and the Company) over each of the three individual’s base amount of
CABR per unit as stated in their compensation agreement, subject to vesting and other
requirements. As the amount of CABR per unit increases, the members’ share of the incentive
distributions increases, up to a maximum aggregate 17% in any given period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The amount payable under the award in the event of an employee termination is the present
value of the member’s share of forecasted incentive distributions assuming the then current level
of distributions continue into perpetuity. The award agreement dictates that the member’s share of
future incentive distributions be discounted back to the payment date using a discount rate equal
to the current distribution yield of market comparable general partners of master limited
partnerships.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The awards vest 25% on each anniversary grant date. The awards are mandatorily redeemable
upon termination of employment or change in control and require the membership interests of the
holders of the awards to be redeemed for cash (or in certain circumstances Genesis limited
partnership units) by Genesis Energy, LLC. Under the provisions of SFAS 123(R), “Share-Based
Payment”, the estimated fair value of these awards is measured each reporting period and recorded
as a liability to the extent vested. Changes in the liability are recorded as compensation expense
in “General and administrative” expenses in our Unaudited Condensed Consolidated Statement of
Operations. We use the graded
attribution method to recognize the share-based compensation expense
associated with these awards. As of June 30, 2009, we had approximately $5.3 million recorded as a
liability for these awards in our Unaudited Condensed Consolidated Balance Sheet. We recorded approximately $2.9 million in the three month period ended June 30, 2009 and $2.6 million
in the three month period ended March 31, 2009 in “General and administrative” expenses on our Unaudited Condensed Consolidated
Statement of Operations, of which $0.1 million in each three month period relates
to cash
payments made under these awards and $2.8 million and $2.5 million, respectively, are associated
with the fair value of the award.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of these awards is estimated using a discounted cash flow analysis which
includes assumptions regarding a number of variables, including Genesis management’s estimates of future CABR
generated by Genesis, the distribution yield of market comparable publicly-traded general partners
of master limited partnerships and a discount rate which considers the risk of forecasted items
being realized, the time value of money and the risk of nonperformance by Denbury.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>NEJD Pipeline and Free State Pipeline Transactions</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On May 30, 2008, we closed on two transactions with Genesis involving our Northeast Jackson
Dome (“NEJD”) pipeline system and Free State Pipeline, which included a long-term transportation
service agreement for the Free State Pipeline and a 20-year financing lease for the NEJD system.
We have recorded both of these transactions as financing leases. At June 30, 2009, we have
recorded $172.2 million for the NEJD financing and $78.3 million for the Free State financing as
debt, $3.1 million of which was recorded in current liabilities on our Unaudited Condensed
Consolidated Balance Sheet. At December 31, 2008, we had $173.6 million for the NEJD pipeline and
$76.6 million for the Free State Pipeline recorded as debt, of which $3.0 million was included in
current liabilities in our Unaudited Condensed Consolidated Balance Sheet. (See Note 4, “Notes
Payable and Long-Term Indebtedness”).
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Oil Sales and Transportation Services</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We utilize Genesis’ trucking services and common carrier pipeline to transport certain of our crude
oil production to sales points where it is sold to third party purchasers. We expensed $2.0
million and $1.9 million, respectively, for these transportation services during the three months
ended June 30, 2009 and 2008, respectively, and $4.2 million and $3.4 million during the six months
ended June 30, 2009 and 2008, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Transportation Leases</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have pipeline transportation agreements with Genesis to transport our crude oil from
certain of our fields in Southwest Mississippi, and to transport CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> from our main
CO<sub style="font-size: 85%; vertical-align: text-bottom">2 </sub>pipeline to Brookhaven Field for our tertiary operations. We have accounted for
these agreements as capital leases. At June 30, 2009 and December 31, 2008, we had $4.2 million and $4.5 million, respectively, of capital
lease obligations with Genesis recorded as liabilities in our Unaudited Condensed Consolidated
Balance Sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>CO</i><sub style="font-size: 85%; vertical-align: text-bottom"><i>2</i></sub><i> Volumetric Production Payments</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During 2003 through 2005, we sold 280.5 Bcf of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> to Genesis under three separate
volumetric production payment agreements. We have recorded the net proceeds of these volumetric
production payment sales as deferred revenue and recognize such revenue as CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> is
delivered under the volumetric production payments. At June 30, 2009 and December 31, 2008, $22.0
million and $24.0 million, respectively, was recorded as deferred revenue, of which $4.1 million
was included in current liabilities at both June 30, 2009 and December 31, 2008. We recognized
deferred revenue of $1.0 million and $1.1 million for the three month periods ended June 30, 2009
and 2008, respectively, and $2.0 million and $2.2 million during the six month periods ended June
30, 2009 and 2008, respectively, for deliveries under these volumetric production payments. We
provide Genesis with certain processing and transportation services in connection with transporting
CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> to their industrial customers for a fee of approximately $0.20 per Mcf of
CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub>. For these services, we recognized revenues of $1.3 million and $1.4 million for
the three months ended June 30, 2009 and 2008, respectively, and $2.5 million and $2.6 million for
the six months ended June 30, 2009 and 2008, respectively.
</div>
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<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 6. Derivative Instruments and Hedging Activities</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Oil and Natural Gas Derivative Contracts</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We do not apply hedge accounting treatment to our oil and natural gas derivative contracts and
therefore the changes in the fair values of these instruments are recognized in income in the
period of change. These fair value changes, along with the cash settlements of expired contracts
are shown under “Commodity derivative expense” in our Unaudited Condensed Consolidated Statements
of Operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     From time to time, we enter into various oil and natural gas derivative contracts to provide
an economic hedge of our exposure to commodity price risk associated with anticipated future oil
and natural gas production. We do not hold or issue derivative financial instruments for trading
purposes. These contracts have consisted of price floors, collars and fixed price swaps.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As a result of the recent economic conditions, and in order to protect our liquidity in the
event that commodity prices decline, during early October 2008 we purchased oil
derivative contracts for 2009 with a floor price of $75 per Bbl and a ceiling price of $115 per Bbl
for total consideration of $15.5 million. In March 2009, we entered into crude oil swap contracts
covering 25,000 Bbls/d for the first quarter of 2010 at a weighted average price of $51.85 per
barrel, and crude oil collar contracts covering 25,000 Bbls/d for the second quarter of 2010 with a
weighted average floor price of $50.00 per Bbl and a weighted average ceiling price of $74.60 per
Bbl. Also during March 2009, we entered into natural gas derivative swap contracts covering 55,000
MMBtu/d for 2010 at a weighted average price of $5.66 per MMBtu, and 40,000 MMBtu/d for 2011 at a
weighted average price of $6.21 per MMBtu. In May 2009, we entered into crude oil collar contracts
covering 25,000 Bbls/d for the third quarter of 2010 with a weighted average floor price of $57.50
per Bbl and a weighted average ceiling price of $80.34 per Bbl. In conjunction with the sale of our
Barnett Shale assets (see Note 2, “Acquisitions and Divestitures”), we transferred a portion of our
2010 and 2011 natural gas derivative swap contracts to the purchaser, Talon Oil and Gas LLC. At
June 30, 2009, we retained natural gas derivative swap contracts covering 42,000 MMBtu/d for 2010
at an average price of $5.67 per MMBtu and 29,000 MMBtu/d for 2011 at a weighted average price of
$6.23 per MMBtu.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2009, our oil and natural gas derivative contracts were recorded at their fair
value, which was a net liability of $47.0 million. All of the mark-to-market valuations used for
our oil and natural gas derivatives are provided by external sources and are based on prices that
are actively quoted. We manage and control market and counterparty credit risk through established
internal control procedures that are reviewed on an ongoing basis. We attempt to minimize credit
risk exposure to counterparties through formal credit policies, monitoring procedures and
diversification. All of our derivative contracts are with parties that are lenders under our
Senior Bank Loan.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following is a summary of “Commodity derivative expense” included in our Unaudited
Condensed Consolidated Statements of Operations:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Three Months Ended June 30,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Six Months Ended June 30,</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Receipt (payment) on settlements of derivative contracts — oil
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">42,002</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(12,131</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">127,838</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(19,523</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Receipt (payment) on settlements of derivative contracts — gas
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16,463</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,119</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value adjustments to derivative contracts — expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(194,791</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(30,223</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(301,142</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(68,956</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity derivative expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(152,789</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(58,817</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(173,304</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(105,598</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
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<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Fair Value of Crude Oil Derivative Contracts Not Classified as Hedging Instruments under SFAS No.
133:</i>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">Estimated Fair Value</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000">NYMEX Contract Prices Per Bbl</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">Asset (Liability)</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">Collar Prices</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">June 30,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000">Type of Contract and Period</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Bbls/d</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Swap Price</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Floor</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Ceiling</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><i>(In thousands)</i></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Collar Contracts
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">July 2009 - Dec. 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">30,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">75.00</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">115.00</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">39,279</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">249,746</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">April 2010 - June 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">5,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50.00</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76.00</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3,089</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">April 2010 - June 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">10,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50.00</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">73.15</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(7,416</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">April 2010 - June 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">5,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50.00</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76.40</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3,009</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">April 2010 - June 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">5,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50.00</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">74.30</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3,447</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">July 2010 - Sept. 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">2,500</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55.00</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">80.10</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,145</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">July 2010 - Sept. 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">10,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55.00</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">80.00</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(4,616</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">July 2010 - Sept. 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">7,500</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60.00</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">80.40</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,588</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">July 2010 - Sept. 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">5,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60.00</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">81.05</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,613</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Swap Contracts
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Jan. 2010 - March 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">6,667</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">52.50</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(12,369</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Jan. 2010 - March 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">3,333</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52.20</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6,270</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Jan. 2010 - March 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">5,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52.10</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9,449</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Jan. 2010 - March 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">5,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50.90</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9,969</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Jan. 2010 - March 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">5,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51.45</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9,731</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Fair Value of Natural Gas Derivative Contracts Not Classified as Hedging Instruments under SFAS No. 133:</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On
July 15, 2009, in conjunction with closing the second portion of
our sale of 60% of our Barnett
Shale natural gas assets (see Note 2, “Acquisitions and Divestitures”) we transferred 3,000 MMBtu/d
of our 2010 natural gas derivative swap contracts, and 2,000 MMBtu/d of our 2011 natural gas
derivative swap contracts, to the purchaser, Talon Oil and Gas LLC.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">Estimated Fair Value</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">NYMEX Contract</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">Asset (Liability)</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">Prices Per MMBtu</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">June 30,</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">December 31,</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000">Type of Contract and Period</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">MMBtu/d</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Swap Price</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><i>(In thousands)</i></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Swap Contracts
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Jan. 2010 - Dec. 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">42,000</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">5.67</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(5,514</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Jan. 2011 - Dec. 2011
</div></td>
<td> </td>
<td> </td>
<td align="right">10,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.27</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,980</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Jan. 2011 - Dec. 2011
</div></td>
<td> </td>
<td> </td>
<td align="right">10,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.25</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,027</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Jan. 2011 - Dec. 2011
</div></td>
<td> </td>
<td> </td>
<td align="right">9,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.16</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,095</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Additional Disclosures about Derivative Instruments:</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2009 and December 31, 2008, we had derivative financial instruments under SFAS No.
133 recorded in our Unaudited Condensed Consolidated Balance Sheets as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="7%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Estimated Fair Value</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Asset (Liability)</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">June 30,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">December 31,</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Type of Contract</td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000">Balance Sheet Location</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><i>(In thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives not
designated as
hedging instruments:
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Derivative Asset
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Crude Oil contracts
</div></td>
<td> </td>
<td align="left" valign="top">Derivative assets - current</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">39,279</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">249,746</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Derivative Liability
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Crude Oil contracts
</div></td>
<td> </td>
<td align="left" valign="top">Derivative liability - current</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">(64,750</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Natural Gas contracts
</div></td>
<td> </td>
<td align="left" valign="top">Derivative liability - current</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">(205</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Crude Oil contracts
</div></td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">Derivative liability - long-term</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">(9,962</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Natural Gas contracts
</div></td>
<td> </td>
<td align="left" valign="top">Derivative liability - long-term</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">(11,410</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 1px solid #000000"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Total derivatives not
designated as hedging
instruments
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(47,048</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">249,746</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For the three and six months ended June 30, 2009 and 2008, the effect on income of derivative
financial instruments under SFAS No. 133 was as follows:
</div>
<div align="center">
<table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="55%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%">    </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Amount of Gain / (Loss)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Amount of Gain / (Loss)</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Recognized in Income For</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6">Recognized in Income For</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Three Months Ended</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Six Months Ended</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Location of Gain/(Loss)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">June 30,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">June 30,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">June 30,</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">June 30,</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000">Type of Contract</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Recognized in Income</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14"><i>(In thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives not
designated as hedging instruments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity Contracts
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Crude Oil Contracts
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="3" align="center">Commodity derivative expense</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(147,316</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(19,688</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(157,341</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(24,442</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Natural Gas Contracts
</div></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Commodity derivative expense</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,473</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(39,129</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15,963</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(81,156</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Total derivatives not
designated as hedging
instruments
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(152,789</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(58,817</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(173,304</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(105,598</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 7 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 7. Fair Value Measurements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As defined in SFAS No. 157, fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the
measurement date (exit price). We utilize market data or assumptions that market participants would
use in pricing the asset or liability, including assumptions about risk and the risks inherent in
the inputs to the valuation technique. These inputs can be readily observable, market corroborated,
or generally unobservable. We primarily apply the market approach for recurring fair value
measurements and endeavor to utilize the best available information. Accordingly, we utilize
valuation techniques that maximize the use of observable inputs and minimize the use of
unobservable inputs. We are able to classify fair value balances based on the observability of
those inputs. SFAS No. 157 establishes a fair value hierarchy that prioritizes the inputs used to
measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (level 1 measurement) and the lowest priority to
unobservable inputs (level 3 measurement). The three levels of the fair value hierarchy defined by
SFAS No. 157 are as follows:
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Level 1 — Quoted prices in active markets for identical assets or liabilities as of the
reporting date. During 2008 we had no level 1 recurring measurements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Level 2 — Pricing inputs are other than quoted prices in active markets included in level 1,
which are either directly or indirectly observable as of the reported date. Level 2 includes those
financial instruments that are valued using models or other valuation methodologies. These models
are primarily industry-standard models that consider various assumptions, including quoted forward
prices for commodities, time value, volatility factors, and current market and contractual prices
for the underlying instruments, as well as other relevant economic measures. Substantially all of
these assumptions are observable in the marketplace throughout the full term of the instrument, can
be derived from observable data or are supported by observable levels at which transactions are
executed in the marketplace.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Instruments in this category include non-exchange-traded oil and natural gas derivatives such
as over-the-counter swaps. We have included an estimate of nonperformance risk in the fair value
measurement of our oil and natural gas derivative contracts as required by SFAS No. 157. We have measured
nonperformance risk based upon credit default swaps or credit spreads. At both June 30, 2009 and December 31, 2008, the fair value of our oil and natural
gas derivative contracts was reduced by $3.7 million for estimated nonperformance risk.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Level 3 — Pricing inputs include significant inputs that are generally less observable from
objective sources. These inputs may be used with internally developed methodologies that result in
management’s best estimate of fair value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth by level within the fair value hierarchy our financial assets
and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2009.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000">Fair Value Measurements at June 30, 2009 Using:</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Significant</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Quoted Prices</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Other</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Significant</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">in Active</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Observable</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Unobservable</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Markets</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Inputs</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Inputs</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Level 1)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Level 2)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Level 3)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Total</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Oil derivative contracts
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">39,279</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">39,279</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Oil and natural gas derivative contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(86,327</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(86,327</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(47,048</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(47,048</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth the fair value of financial instruments that are not recorded
at fair value in our Unaudited Condensed Consolidated Financial Statements.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">June 30, 2009</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">December 31, 2008</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Carrying</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Estimated</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Carrying</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Estimated</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Amount</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Fair Value</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Amount</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Fair Value</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">9.75% Senior Subordinated Notes due 2016
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">397,784</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">438,075</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">7.5% Senior Subordinated Notes due 2015
</div></td>
<td> </td>
<td> </td>
<td align="right">300,556</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">285,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">300,599</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">213,000</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">7.5% Senior Subordinated Notes due 2013
</div></td>
<td> </td>
<td> </td>
<td align="right">224,272</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">214,875</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">224,174</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">171,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior Bank Loan
</div></td>
<td> </td>
<td> </td>
<td align="right">45,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41,128</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">75,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">64,000</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair values of our senior subordinated notes are based on quoted market prices. The
carrying value of our Senior Bank Loan is approximately fair value based on the fact that it is
subject to short-term floating interest rates that
approximate the rates available to us for those
periods. We adjusted the estimated fair value measurement of our Senior Bank Loan in accordance
with SFAS No. 157 for estimated nonperformance risk. This estimated nonperformance risk totaled
approximately $3.9 million and $11.0 million at June 30, 2009 and December 31, 2008, respectively,
and was determined utilizing industry credit default swaps. We have other financial instruments
consisting primarily of cash, cash equivalents, short-term receivables and payables that
approximate fair value due to the nature of the instrument and the relatively short maturities.
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 8 - us-gaap:ScheduleOfCondensedFinancialStatementsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 8. Condensed Consolidating Financial Information</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our subordinated debt is fully and unconditionally guaranteed jointly and severally by all of
Denbury Resources Inc.’s subsidiaries other than minor subsidiaries, except that with respect to
our $225 million of 7.5% Senior Subordinated Notes due 2013, Denbury Resources Inc. and Denbury
Onshore, LLC are co-obligors. Except as noted in the foregoing sentence, Denbury Resources Inc. is
the sole issuer and Denbury Onshore, LLC is a subsidiary guarantor. The results of our equity
interest in Genesis are reflected through the equity method by one of our subsidiaries, Denbury
Gathering & Marketing. Each subsidiary guarantor and the subsidiary co-obligor are 100% owned,
directly or indirectly, by Denbury Resources Inc. The following is condensed consolidating
financial information for Denbury Resources Inc., Denbury Onshore, LLC, and subsidiary guarantors:
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Condensed Consolidating Balance Sheets</i>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="18" style="border-bottom: 1px solid #000000">June 30, 2009</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Onshore, LLC</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Parent and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Issuer and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Guarantor</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Subsidiaries</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Eliminations</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">Assets
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">453,561</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">256,901</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,236</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(466,337</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">261,361</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,215,096</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">111,650</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,326,746</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment in subsidiaries (equity method)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,268,178</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,212,347</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,480,525</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">747,393</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">204,921</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,205</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(738,028</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">270,491</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,469,132</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,676,918</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,397,438</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3,684,890</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">3,858,598</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">Liabilities and Stockholders’ Equity
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,857</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">698,317</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">122,762</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(466,337</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">370,599</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">698,340</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,766,254</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,498</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(738,028</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,733,064</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Stockholders’ equity
</div></td>
<td> </td>
<td> </td>
<td align="right">1,754,935</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,212,347</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,268,178</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,480,525</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,754,935</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total liabilities and stockholders’ equity
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,469,132</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,676,918</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,397,438</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3,684,890</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">3,858,598</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="18" style="border-bottom: 1px solid #000000">December 31, 2008</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Onshore, LLC</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Parent and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Issuer and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Guarantor</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Subsidiaries</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Eliminations</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">Assets
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">458,051</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">408,940</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">14,992</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(466,784</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">415,199</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,973,947</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,250</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,002,197</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment in subsidiaries (equity method)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,371,347</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,313,656</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,685,003</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">312,239</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">114,372</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,002</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(310,335</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">172,278</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,141,637</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,497,259</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,412,900</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3,462,122</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">3,589,674</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px">Liabilities and Stockholders’ Equity
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">970</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">810,476</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">41,405</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(466,784</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">386,067</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">300,599</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,373,127</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">148</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(310,335</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,363,539</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Stockholders’ equity
</div></td>
<td> </td>
<td> </td>
<td align="right">1,840,068</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,313,656</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,371,347</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,685,003</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,840,068</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total liabilties and stockholders’ equity
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,141,637</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,497,259</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,412,900</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3,462,122</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">3,589,674</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Condensed Consolidating Statements of Operations</i>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="18" style="border-bottom: 1px solid #000000">Three Months Ended June 30, 2009</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Onshore, LLC</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Parent and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Issuer and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Guarantor</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Subsidiaries</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Eliminations</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,862</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">215,538</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,854</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(15,862</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">217,392</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">17,380</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">354,224</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,318</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15,862</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">358,060</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) before the following:
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,518</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(138,686</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(464</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(140,668</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Equity in net earnings of subsidiaries
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(85,722</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(85,015</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">170,737</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(87,240</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(138,686</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(85,479</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">170,737</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(140,668</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax provision (benefit)
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(53,671</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">243</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(53,428</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
(loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(87,240</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(85,015</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(85,722</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">170,737</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(87,240</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="18" style="border-bottom: 1px solid #000000">Three Months Ended June 30, 2008</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Onshore, LLC</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Parent and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Issuer and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Guarantor</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Subsidiaries</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Eliminations</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,625</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">417,218</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">767</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,625</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">417,985</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">5,746</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">233,361</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">828</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,625</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">234,310</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) before the following:
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(121</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">183,857</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(61</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">183,675</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Equity in net earnings of subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">114,171</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">114,449</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(228,620</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">114,050</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">183,857</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">114,388</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(228,620</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">183,675</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax provision (benefit)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">69,408</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">217</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">69,622</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">114,053</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">114,449</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">114,171</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(228,620</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">114,053</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Condensed Consolidating Statements of Operations (continued)</i>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="18" style="border-bottom: 1px solid #000000">Six Months Ended June 30, 2009</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Onshore, LLC</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Parent and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Issuer and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Guarantor</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Subsidiaries</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Eliminations</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">26,720</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">387,598</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,553</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(26,720</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">391,151</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">29,053</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">553,188</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,273</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(26,720</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">560,794</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) before the following:
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,333</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(165,590</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,720</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(169,643</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Equity in net earnings of subsidiaries
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(103,204</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(101,345</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">204,549</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(105,537</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(165,590</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(103,065</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">204,549</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(169,643</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax provision (benefit)
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(64,245</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">139</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(64,106</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
(loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(105,537</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(101,345</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(103,204</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">204,549</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(105,537</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="18" style="border-bottom: 1px solid #000000">Six Months Ended June 30, 2008</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Onshore, LLC</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Parent and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Issuer and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Guarantor</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Subsidiaries</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Eliminations</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">11,250</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">734,462</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">858</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(11,250</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">735,320</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">11,491</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">433,883</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,632</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,250</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">435,756</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) before the following:
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(241</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">300,579</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(774</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">299,564</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Equity in net earnings of subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">187,275</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">188,254</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(375,529</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">187,034</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">300,579</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">187,480</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(375,529</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">299,564</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax provision (benefit)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">112,325</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">205</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112,509</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">187,055</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">188,254</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">187,275</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(375,529</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">187,055</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 10pt; margin-top: 0pt">
<b>
<i>
</i>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Condensed Consolidating Statements of Cash Flows</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Denbury Resources Inc. (Parent) has no independent assets or operations. Denbury
Onshore, LLC is our operating subsidiary. Cash flow activity of Denbury Resources Inc. consists of
intercompany loans between Denbury Resources Inc. and Denbury Onshore, LLC to service the parent
company issued debt. This intercompany cash flow activity is eliminated in consolidation. Cash
flow activity of Denbury Onshore, LLC combined with the other guarantor subsidiaries is presented
in our Unaudited Condensed Consolidated Statements of Cash Flows.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="18" style="border-bottom: 1px solid #000000">Six Months Ended June 30, 2009</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Onshore, LLC</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Parent and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Issuer and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Guarantor</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Subsidiaries</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Eliminations</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flow from operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">260,548</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">241</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">260,789</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flow from investing activities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(388,391</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(574,840</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">388,391</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(574,840</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flow from financing activities
</div></td>
<td> </td>
<td> </td>
<td align="right">388,391</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">356,941</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(388,391</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">356,941</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net increase in cash
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42,649</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">241</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42,890</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash, beginning of period
</div></td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,898</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">147</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,069</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash, end of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">59,547</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">388</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">59,959</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="18" style="border-bottom: 1px solid #000000">Six Months Ended June 30, 2008</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Onshore, LLC</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Denbury</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Parent and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Issuer and Co-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Guarantor</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Resources Inc.</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>In thousands</i></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Obligor)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Subsidiaries</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Eliminations</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Consolidated</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flow from operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">370,325</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">370,329</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flow from investing activities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(23,757</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(384,797</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2,725</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23,757</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(382,072</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flow from financing activities
</div></td>
<td> </td>
<td> </td>
<td align="right">23,757</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">98,645</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(23,757</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">98,645</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net increase (decrease) in cash
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">84,173</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,739</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">86,902</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash, beginning of period
</div></td>
<td> </td>
<td> </td>
<td align="right">34</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58,343</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,730</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60,107</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash, end of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">142,516</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,469</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">147,009</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 9 - us-gaap:ScheduleOfSubsequentEventsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 9. Subsequent Event</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On July 15, 2009, we closed the remaining balance of the sale of 60% of our Barnett Shale
natural gas assets (see Note 2, “Acquisitions and Divestitures”). Net proceeds from the second
closing were approximately $62.3 million, bringing total net proceeds of the sale to approximately
$259.8 million (after closing adjustments and net of $8.1 million for natural gas swaps transferred
in the sale). We did not record any gain or loss on the sale in accordance with the full cost
method of accounting.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
</body>
</html>
false
--12-31
2009-06-30
10-Q
0000945764
249438000
Yes
Large Accelerated Filer
2708224144
DENBURY RESOURCES INC.
No
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