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Exxon Mobil in talks to buy oil & gas producer Denbury -Bloomberg News

Oct 10 (Reuters) – Exxon Mobil Corp (XOM.N) is considering a takeover of oil and gas producer Denbury Inc (DEN.N) and the talks are at a preliminary stage, Bloomberg News reported on Monday, citing people familiar with the matter.

Shares of Plano, Texas-based energy company Denbury jumped as much as 12% earlier on Monday, before paring some gains to close up about 7%, giving it a market value of about $5 billion.

Denbury is expected to be fetch a significant premium if it proceeds with the sale, making it a potentially sizable transaction.

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Denbury has been exploring options and is working with an advisor on a potential sale, sources familiar with the matter have previously told Reuters. Other potential buyers could include oil majors such as Chevron Corp (CVX.N), the sources said.

The company specializes in using carbon dioxide to extract oil from old wells and thus is seen as…

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