Oil and gas company Denbury Resources Inc said it would buy a 95 percent working interest in the Conroe Field in Houston for about $430.7 million in cash and stock from Wapiti Energy LLC.

Denbury said the property contains an estimated 20 million barrels of oil equivalent (MMBoe) of proved conventional reserves as of Dec. 1. This translates to a purchase price of about $21.54 per barrel of oil equivalent.

The purchase price would consist of about 11.6 million of Denbury shares and $256.4 million in cash, the company said.

Denbury expects to cover about $210 million of the cash portion with the sale of its remaining Barnett Shale assets to Talon Oil & Gas LLC.

Talon had earlier this year purchased 60 percent of Denbury's Barnett Shale assets.

Production from the Barnett assets being sold averaged about 4,596 barrels of oil equivalent (BOE/d) during the third quarter of 2009, Denbury said.

Our net production will decrease as a result of the two transactions, but with the higher margins currently earned on oil properties, we expect a slight increase in our net projected cash flow for 2010 if commodity prices remain at current levels. Chief Executive Phil Rykhoek said.

The company also expects to spend an additional $750 million to $1.0 billion to develop Conroe Field as a tertiary flood.

Denbury shares, which have nearly doubled in value from a December 2008 year-low, were almost flat at $13.22 Thursday morning on the New York Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Vinu Pilakkott)

Update