Plano Energy Firm, Denbury Resources, Calls Off $1.7 Billion Acquisition

Denbury Resources Inc. is calling off its $1.7 billion acquisition of a company focused on South Texas' Eagle Ford shale play. The Plano-based oil and gas company made the announcement after Thursday's market close. Denbury described the termination as a mutual agreement with Penn Virginia Corp. The firms struck the deal in October."The difficult market conditions since announcement, combined with the opposition of certain Penn Virginia shareholders, led us to the conclusion that the transaction was unlikely to receive the necessary super majority approval from Penn Virginia shareholders," said Denbury CEO Chris Kendall in a statement.Penn Virginia CEO John Brooks said calling off the merger is in "the best interests of the company and our shareholders." Denbury was to own 71 percent of the combined company.Kendall said Denbury will continue looking to expand its business and remains "optimistic about the significant resource potential that CO2 enhanced oil recovery could deliver in the Eagle Ford."  Continue reading...

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