2012 - 2014, page-17

Thanks binbin, they are some interesting points that Denbury have put forward.

The more I hear about Denbury the more I believe they are a conservative mob when it comes to estimates. The 18 months to production is what was in the EORI report, yet they won't use the recoveries from that report instead using their average of 17% of OOIP.

The contract for the supply of CO2 with Exxon is supposedly to begin early 2012. The CO2 injectors will all be worked over and ready for injection by end of 2011. Bob has said that once the EA approval is given then CO2 injection should start within 2 months. So the start date depends on EA approval and Denbury may have an updated schedule from the BLM which will push this back.

The 18 months to oil production was based on a gravity stable flood as per the EORI study. Denbury has gone with a pattern flood which has achieved early response in its other fields (usually 3-6 months).

Production by late 2012 may be the best case scenario, while the worst case scenario (Denbury's timeline) is by early 2014. Either way with Denbury running the show there is confidence that we will get there. If we have to wait a little longer so be it.