Basket case, page-19

I'm learning as I go here, so my apologies if I'm barking up the wrong tree....

The 6 MMBbls (65% share, 9.23 total) recoverable that Denbury have reported in their last two presentations relates to tertiary (CO2 EOR ) recovery - see the footnote which states: "Field reserves shown are estimated total potential tertiary reserves, including cumulative tertiary production through 12/31/13."

They have stated that tertiary recovery accounts for approximately 17% of the original oil in place based on their Little Creek Field. They also state that secondary (waterfloods) recovery accounts for 18% of the original oil in place. This would be approximately 9.77 MMBbls (100% share). That gives a total of 19 MMBbls which is very close to the 18.6 MMBbls claimed by ELK. When factoring in rounding of the 6 MMBbls reported by Denbury the figures may still correlate.

I'm looking into the cashflow side of things a bit more; but fully agree that we need more information regarding forward plans. Diversification with a plan is great, but diversification for the sake of it is simply getting rid of cash reserves twice as quickly.