And before that, let me remind you that today's call will include forward-looking statements that are based on the best and most reasonable information we have today. There are numerous factors that could cause actual results to differ materially from what is discussed. You can read our full disclosure on forward-looking statements and risk factors associated with our business in our corporate presentation, our latest 10-K and today's press release, all of which are posted to our website, www.denbury.com.In addition, I'll remind you that over the course of today's call, we will reference certain non-GAAP measures. Reconciliations and disclosures on these measures is provided in today's release. With that, let me turn the call over to Phil. Phil Rykhoek Thanks, Jack. As you can see from our first quarter, we're starting off the year on a positive note. But before I get into the quarterly results, let me briefly talk about the acquisition we announced a couple of days ago. Tuesday, we announced we agreed to acquire Thompson Field for $360 million plus a production payment. This is a significant strategic acquisition for us and exactly the type of deal that we want to do for the following reasons. First and foremost, Thompson Field is desirable because it's a large field located only 18 miles from the termination of our Green Pipeline, meaning that there will be minimal additional required pipeline infrastructure to plug this field. It's a field technically similar to Hastings, meaning that what we learned at Hastings, we'll usually transfer over. It's a large field with an estimated 650 million barrels of oil in place, and it is one of our top 10 desired fields in the Gulf Coast area. As our review has been rather limited thus far, we've not yet determined how much of the field will be floodable, but we are comfortable saying we can target at least 300 million barrels of original oil in place. That would translate into an EOR target of 30 million to 60 million barrels, or expressed in other way, it's an estimated recovery approximate equal to Tinsley Field. While significant, I believe that with further review, we will additional floodable areas at Thompson and the projected EOR recoveries should increase. Although initial EOR production is a few years away, this will fit in nicely with our Gulf Coast program, extending our peak EOR production from that area.
In addition to the EOR potential, the acquisition adds a little immediate conventional production in cash flow, adding about 2,200 barrels a day or about the same production that we saw earlier this year. The field has several conventional projects, development projects that we can do with attractive rates of return. And that should allow us to minimize the conventional production decline. We are fortunate in the timing of this acquisition as we anticipate receiving like-kind exchange treatment, which will save us about $30 million in current taxes, creating an additional value for our shareholders. We expect the transition to close in early June, and currently estimate first tertiary production around 2017. The timing reflects the need to unitize the field, construct an 18-mile extension of our CO2 pipeline from Hastings and manage and properly allocate our CO2 supply and transportation. We'll be able to give you more details on this once we have a little more time to study it, create an EOR model and development plan. But bottom line, we're enthused we're able to pick up another significant Gulf Coast oilfield and add to our extensive inventory of the EOR projects.Briefly on the first quarter. We reported a first quarter adjusted net income of $161 million, $0.41 per diluted share and adjusted cash flow of $352 million. Both of these are slightly less than our last quarter's record-setting levels but still very strong, up 55% and 30% respectively from the year ago. Of course, as Jack mentioned, these are non-GAAP measures. And see our press release and other documents for the reconciling items. Read the rest of this transcript for free on seekingalpha.com