Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

Note 8. Related Party

During the three and nine months ended September 30, 2012, we purchased $4.5 million and $9.7 million, respectively of oil produced bya privately-held entity of which a member of our Board of Directors serves as chairman of the board. The oil purchased under this agreement is related to the non-core assets in central and southern Mississippi and in southern Louisiana (see further discussion in Note 2, Acquisitions and Divestitures) sold to this same entity in February 2012. The oil purchased under this agreement is part of a typical commercial transaction that would be entered into with a third party and is later blended with other oil and sold by Denbury to an unrelated third party. The purchase of oil is classified as “Marketing expenses” and the subsequent sale is included in “Interest income and other income” on the accompanying Unaudited Condensed Consolidated Statements of Operations. We are under no continuing obligation to purchase oil under this agreement.