Louisiana Governor Jindal Joins Denbury Resources Inc. To Highlight "Green Pipeline" Oil Drilling Project

May 28, 2009 -- BATON ROUGE – Today, Louisiana Governor Bobby Jindal joined officials from Denbury Resources Inc, an independent oil and gas company, to provide an update on Denbury’s Green Pipeline project. Denbury is building a "Green Pipeline" from Donaldsonville, Louisiana to a location in Texas, which will be one of the first pipelines designed to transport man-made CO2 injecting it into oil reservoirs to recover additional crude oil that would not otherwise be produced.

The Green Pipeline project will have a total capital investment of $750 million and is expected to create up to 800 jobs during construction.

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Governor Jindal said, “This a first of its kind project here in Louisiana and it ties together two critical areas for our state – economic development and energy exploration. Louisiana is at the forefront of the energy industry and there is no doubt that this new pipeline will boost our economy and strengthen our state and nation’s energy development.”

The approximately 320-mile pipeline is designed to transport both natural and man-made (anthropogenic) carbon dioxide (CO2) and is scheduled for completion by 2010. In Louisiana alone, the Department of Natural Resources (DNR) estimates that 15.7 billion barrels of oil lay stranded in our oil fields. Further, DNR estimates that nearly six billion barrels may be recoverable through CO2 injection techniques.

Denbury is a growing independent oil and gas company engaged in acquisition, development and exploration activities in the U.S. Gulf Coast region. Denbury is the largest oil and natural gas producer in Mississippi, owns the largest carbon dioxide (CO2) reserves east of the Mississippi River used for tertiary oil recovery, and holds operating acreage in the Barnett Shale play near Fort Worth, Texas, onshore Louisiana, Alabama, and properties in Southeast Texas.

Source: Louisiana Governor