Breaking News

Denbury announced 2023 capital budget range for oil and natural gas development of $350M-$370M, and for carbon capture, utilization, and storage, or CCUS, capital expenditures of $140M-$160M. 2023 capital expenditures will be focused on expanding the company's CO2 transportation and dedicated storage network by adding strategically-located sequestration sites to its portfolio, expanding existing sequestration sites with nearby leasing, and drilling a number of stratigraphic test wells. In addition, Denbury expects to acquire additional rights of way and long-lead items for CO2 pipeline connections to sequestration sites and industrial customers. Excluded from the capital budget amount are equity investments that Denbury may make from time to time to increase the scale of its CCUS operations.

Denbury anticipates oil and natural gas sales volumes for 2023 between 46,000 and 49,000 barrels of oil equivalent per day, with 97% of the volumes expected to be oil. The midpoint of the 2023 production range is up approximately 1.5% from 2022, primarily due to the anticipated commencement of production from the CCA EOR development in the second half of 2023. Lease operating expense is estimated to range between $29 and $31 per BOE during 2023, slightly higher than in 2022 primarily due to higher expected CO2 costs.

Aqualung Carbon Capture is excited to announce the strategic carbon capture and sequestration partnership with Denbury. In conjunction with the partnership, Denbury will make an equity investment in Aqualung, expanding on our strong shareholder base. Aqualung's CO2 capture technology has demonstrated the ability to significantly reduce the cost of capture utilizing our membrane technology and is being prioritized to industrial facilities across low and high levels of CO2 concentration. The targeted CO2 capture sources are initially sub 1 million metric tons per year of CO2 which represent ~90% of the stationary emitters. The agreement with Denbury provides Aqualung with additional insight and access into the transportation and sequestration sector and for Denbury, insight into the cost of capture technology aspects. Based on the industrial sources, the two companies will work together to provide a complete solution for emitters starting from capture at emission source all the way to sequestration. Denbury's equity investment will accelerate Aqualung's US strategy with a target to begin sending commercial CO2 into Denbury's pipeline during 2024.