On March 9, 2010, we acquired Encore Acquisition Company (“Encore”) pursuant to the Encore Merger Agreement entered into with Encore on October 31, 2009. The Encore Merger Agreement provided for a stock and cash transaction valued at approximately $4.8 billion at the acquisition date, including the assumption of debt and the value of the noncontrolling interest in ENP (the “Encore Merger”). Under the Encore Merger Agreement, Encore was merged with and into Denbury, with Denbury surviving the Encore Merger.

For the three months ended June 30, 2010 and for the period from March 9, 2010 to June 30, 2010, we recognized $200.6 million and $260.9 million, respectively, of oil, natural gas sales and related product sales related to the Encore Merger. For the three months ended June 30, 2010 and for the period from March 9, 2010 to June 30, 2010, we recognized $137.8 million and $180.7 million, respectively, of net field operating income (oil, natural gas and related product sales less lease operating expenses, production taxes and marketing expenses) related to the Encore Merger. We recognized a total of $2.0 million and $22.8 million of transaction and other costs related to the Encore Merger (primarily advisory, legal, accounting, due diligence, integration and severance costs) for the three months ended June 30, 2011 and 2010, respectively, and $4.4 million and $67.8 million of such costs for the six months ended June 30, 2011 and 2010, respectively.

In October 2010, we acquired a 42.5% non-operated working interest in the Riley Ridge Federal Unit (“Riley Ridge”), located in the LaBarge Field of southwestern Wyoming, for $132.3 million after closing adjustments. Riley Ridge contains natural gas resources, as well as helium and CO2 resources. The purchase included a working interest in a gas plant, which is currently under construction, which will separate the helium and natural gas from the commingled gas stream. The acquisition also included approximately 33% of the CO2 mineral rights in an additional 28,000 acres adjoining the Riley Ridge Unit.

This acquisition meets the definition of a business under the FASC Business Combinations topic. The following table presents a summary of the preliminary fair value of these Riley Ridge assets acquired and liabilities assumed:

In thousands
Oil and natural gas properties		$	19,646
CO2 and other non-hydrocarbon gases properties			10,907
Pipelines and plants			72,070
Prepaid construction and drilling costs			9,346
Other assets			19,300
Asset retirement obligations			(472)
Goodwill			1,460
	Total	$	132,257

On August 1, 2011, we acquired the remaining working interest in Riley Ridge and an additional interest in the adjoining acreage and became the operator of both projects; see Note 8, Subsequent Event, for more information.

Had the Encore Merger and October 2010 Riley Ridge acquisition both occurred on January 1, 2010, our combined pro forma revenues and net income for the three and six months ended June 30, 2010, would have been as follows:

		Pro Forma Results
In thousands, except per share amounts		Three Months Ended June 30, 2010		Six Months Ended June 30, 2010
Pro forma total revenues		$	497,210	$	1,112,481
Pro forma net income attributable to Denbury stockholders			135,494		247,423
Pro forma net income per common share:
	Basic	$	0.34	$	0.63
	Diluted		0.34		0.62

In February 2010, we sold our interest in Genesis Energy, LLC, the general partner of Genesis Energy, L.P. (“Genesis”), for net proceeds of approximately $84 million. In March 2010, we sold all of our Genesis common units in a secondary public offering for net proceeds of approximately $79 million. We recognized a pre-tax gain of approximately $101.5 million ($63.0 million after tax) on these dispositions.

In May 2010, we sold certain non-strategic legacy Encore properties primarily located in the Permian Basin, the Mid-continent area and the East Texas Basin (the “Southern Assets”) to Quantum Resources Management, LLC for consideration of $892.1 million after closing adjustments. We did not record a gain or loss on the sale in accordance with the full cost method of accounting.