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                                                                    EXHIBIT 99.1

                             DENBURY RESOURCES INC.
                                  PRESS RELEASE

           DENBURY RESOURCES ANNOUNCES PRIVATE OFFERING OF $75,000,000
                          OF SENIOR SUBORDINATED NOTES

News Release
Released at 7:30 AM CDT

     DALLAS - July 24, 2001 - Denbury Resources Inc. (NYSE / TSE symbols: DNR)
("Denbury" or the "Company") today announced that it intends to raise
approximately $75 million through a private placement (Rule 144A offering) of
Series B Senior Subordinated Notes due 2008. The notes will be issued under a
separate indenture but on terms substantially identical to the Company's
existing 9% Senior Subordinated Notes due 2008. The offering will be made within
the United States only to qualified institutional buyers and outside the United
States to non-U.S. investors. The Company expects to price the notes during the
week of July 30th, 2001.

     Denbury plans to use the estimated net proceeds of $69.7 million from the
offering to repay a majority of the long-term debt borrowed under the Company's
bank credit facility in connection with the recent acquisition of Matrix Oil &
Gas, Inc. The Matrix acquisition closed on July 10, 2001.

     The notes have not been registered under the Securities Act of 1933 or
applicable state securities laws, and may not be offered or sold in the United
States absent registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state laws. This announcement
shall not constitute an offer to sell or the solicitation of an offer to buy the
notes.

     This press release, other than historical financial information, contains
forward looking statements that involve risks and uncertainties including
whether the offering of the notes will actually occur.

                        For further information contact:
                             DENBURY RESOURCES INC.

Gareth Roberts, President and CEO, 972-673-2000
Phil Rykhoek, Chief Financial Officer, 972-673-2000
www.denbury.com