AI
Saturday, November 24, 2012 1:38:51 PM
DNR - Denbury Resources showed positive movement last week on low volume. I'm interested in learning what will happen Monday. If we see a small correction, then it might be a good opportunity to go long.
Denbury has an asset that is often overlooked by analysts because they don't claim any reserves from the asset. Denbury bought out a company 3-4 years ago to acquire their CO2 assets in the Rocky Mountains. This purchase also came with 250K acres that are prospective for the Tuscaloosa Marine Shale. These leases were then sold to Encana, but Denbury retained a 15% working interest in the leases. Encana is now on the verge of establishing economic production from the TMS. It is rumored that Shell is going to buy 50% of Encana's interest in the TMS. Shell Representatives have been seen touring the production facilities & pipeline terminals in the area.
Anyway, I'm looking for a good entry point into DNR, and I hope I have not missed it.
Denbury has an asset that is often overlooked by analysts because they don't claim any reserves from the asset. Denbury bought out a company 3-4 years ago to acquire their CO2 assets in the Rocky Mountains. This purchase also came with 250K acres that are prospective for the Tuscaloosa Marine Shale. These leases were then sold to Encana, but Denbury retained a 15% working interest in the leases. Encana is now on the verge of establishing economic production from the TMS. It is rumored that Shell is going to buy 50% of Encana's interest in the TMS. Shell Representatives have been seen touring the production facilities & pipeline terminals in the area.
Anyway, I'm looking for a good entry point into DNR, and I hope I have not missed it.
All comments, even those presented as facts, are opinions, and are subject to change. Readers should not use this comment, in whole or part, as a basis for making investment or trading decisions. All information contained within this comment are hearsay a
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