Exhibit 99.1

                             DENBURY RESOURCES INC.
                             P R E S S R E L E A S E

                           Denbury Resources Announces
                     Internal Holding Company Reorganization

News Release
Released at 7:30 AM CDT

DALLAS - December 22, 2003 - Denbury  Resources Inc.  (NYSE:  DNR) ("Denbury" or
the  "Company")  announced  today,  that  effective  December 29, 2003,  it will
complete  an  internal   reorganization   to  a   holding-company-organizational
structure.   This  reorganization  will  not  impact  Denbury's  public  company
shareholders;  no action is required on their part and their rights,  privileges
and ownership will not change. Denbury's common stock will continue to be listed
on the New York Stock  Exchange  under the same symbol,  "DNR".  The purposes of
creating  the holding  company  structure  are to better  reflect the  operating
practices  and methods of  Denbury,  to improve  its  economics,  and to provide
greater administrative and operational flexibility.

Denbury  and two  newly  created  wholly-owned  subsidiaries  signed  a Plan and
Agreement  of Merger  today  that will  become  effective,  along  with  related
intercompany  transactions,  at 9:00 a.m. EST next  Monday,  December 29. At the
effective  time, each share of Denbury common stock will  automatically  convert
into one share of common stock of the new holding company. The reorganization is
structured  under  Delaware  law in a manner  that  does not  require  action by
Denbury stockholders and so that it is a tax-free  transaction.  Denbury's name,
charter, bylaws, officers, board of directors, authorized shares and outstanding
common stock will remain the same. Denbury will be making amendments to its bank
credit  agreement,  subordinated  debt  indenture,  and various  other plans and
documents to accommodate the internal  reorganization,  but once completed,  the
restructuring  should  not  impact  any of  Denbury's  customers,  suppliers  or
lenders.

Denbury Resources Inc.  (www.denbury.com)  is a growing  independent oil and gas
company. The Company is the largest oil and natural gas operator in Mississippi,
holds key operating  acreage onshore in Louisiana and has a growing  presence in
the offshore Gulf of Mexico areas.

This press release  contains  forward  looking  statements that involve risk and
uncertainties.


                        For further information contact:

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