In a moment, I'll turn the call over to Phil and to the other members of senior management to discuss second quarter results and our outlook. 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 the 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.Also, over the course of today's call, we will reference certain non-GAAP measures. Reconciliations and disclosure on these measures is provided in today's press release. With that, let me turn the call over to Phil. Phil Rykhoek Thank you, Jack. Before I start reviewing the quarter, I'd like to just express congratulations to 2 members of our senior management team on recent promotions. As we have previously announced, we recently promoted Craig McPherson to Chief Operating Officer. He's done a remarkable for us in the year he's been at Denbury, exceeding expectations, and he's playing a key role on taking our operations to a higher level. Craig's on the call with us today, and of course, you'll probably see him on a regular basis in the future. We also promoted Charlie Gibson to Senior Vice President of Planning, Technology and Business Development. As we continue our growth and expansion, both the Gulf Coast and Rockies, the planning and technology areas are vital to Denbury, and he's -- Charlie has demonstrated his expertise and leadership during the last 10 years at Denbury. And as such, we have placed him over one of the most significant aspects of our business, demonstrating our faith in his abilities. So congratulations to both of them.
Turning to the second quarter, as you saw on this morning's press release, we continue to execute well in 2012. We have grown in reserves, grow production, lower in cost and most importantly, creating value for our shareholders. Our tertiary production increased by 6% sequentially as a result of growth from our fields at Hastings and Oyster Bayou and also Tinsley and Heidelberg. Craig will give you much more color on that here in a minute.Based on the strong tertiary response today at Hastings, we're able to book initial proved tertiary reserves in this field a bit earlier than we originally had expected. We added about 43 million barrels of oil reserves at Hastings with a PV-10 Value of over $1 billion, and that's using SEC pricing of approximately $95 oil. By itself, that's an incremental value of between $2.50 and $3 per share. If you recall, we added 14 million barrels of proved tertiary reserves last quarter at Oyster Bayou and that had a PV-10 Value of more than $500 million. So combined these 2 EOR gives fields gives us nearly 57 million barrels of incremental tertiary oil reserves in the first half of 2012 adding about $4 a share to our PV-10 Value. At both of these fields, we would expect to add to these proved reserve numbers over time as the fields are further developed. Another point you might make here is that Hastings and Oyster Bayou's positive response to the CO2 injections is also very favorable for the recently acquired Thompson. If you recall, Thompson's about 18 miles from Hastings, and the important point is that all 3 fields produce from the same preo [ph] formation. With reserve additions at Hastings, Oyster Bayou and the Bakken, we've increased our internally estimated proved reserves up 12% from year-end 2011 levels. So the bottom line, our tertiary program's doing well, and it's creating real value.
We reported second quarter adjusted net income $138 million, $0.35 a share, adjusted cash flow of $3.62. Both of them ahead of Wall Street consensus estimates. Even though oil prices are lower this quarter than comparative periods, I think it's really neat that adjusted EPS was only down slightly, and adjusted cash flow actually increased as the higher production nearly offset the lower prices, and cash expenses changed only modestly. Of course, as Jack mentioned, these are non-GAAP measures, so be aware of those differences.Read the rest of this transcript for free on seekingalpha.com