GreenHunter Water Closes on Acquisition of Salt Water Disposal Wells in Marcellus and Utica Shale Plays
Acquisition of 2 Operating Class II Salt Water Injection Wells in Ohio and West Virginia—Includes Five Vacuum Trucks, Office Buildings and Maintenance Garage
GRAPEVINE, Texas--(BUSINESS WIRE)-- GreenHunter Energy, Inc. (NYSE MKT: GRH) (NYSE MKT:GRH.PRC), a diversified water resource, waste management and environmental services company specializing in the unconventional oil and natural gas shale resource plays, announced today that its wholly owned subsidiary, GreenHunter Water, LLC, has acquired two operating Class II salt water disposal (SWD) wells located in Washington County, Ohio and Ritchie County, West Virginia. These SWD wells are strategically positioned in the heart of the Marcellus and Utica Shale Unconventional Resource Plays and will bring an additional 3,000 to 4,000 Barrels per day (BBL/D) of combined commercial SWD capacity into the Company's existing water services portfolio. Consideration for the purchase consisted of a combination of cash and newly issued Series C perpetual cumulative preferred stock (non-convertible).
The operating Washington County SWD well is located on 1-1/2 surface acres and has an approximate disposal capacity of 2,000 BBL/day. The Ritchie County SWD well is located on a 7-1/2 acre site and currently has an approximate disposal capacity of 1,000 BBL/day. GreenHunter now owns all surface acreage associated with the SWD wells including a 23-1/2 acre property with 20,000 square feet of corporate office and industrial buildings which will become the Company's Appalachian operations headquarters. Multiple garage bays for truck maintenance and equipment storage and the potential for a new SWD well location exist on this site. Additionally, GreenHunter has added five 80 BBL water hauling ("Bobtail") vacuum trucks to its existing Appalachia fleet as part of this transaction. This brings the total number of water hauling trucks owned and operated by the Company to 34 units.
Commenting on this event, Jonathan D. Hoopes, GreenHunter President and COO, stated, "Our Appalachia customer base has grown rapidly throughout the year driving an increase in demand for salt water disposal capacity. Meanwhile, we anxiously await the day when the Ohio Department of Natural Resources lifts its moratorium on UIC permit issuance in the State which has been in effect for one year now. In an effort to help alleviate our customers' SWD capacity constraints, we continue to be on the lookout for acquisition opportunities. The acquisition of these two new SWD wells will add much needed additional capacity and will also help improve our logistics and hauling options. While these were asset purchases, we were fortunate to add a group of local management talent at this critical stage in our Company's rapid expansion. With this acquisition, GreenHunter Water's company-owned SWD capacity has increased to approximately 40,000 BBL per day. We believe these new assets will further establish GreenHunter's leadership position in the Marcellus and Utica Shale plays and we look forward to our continued expansion of our Total Water Management Solutions™ services in this region."
For a visual animation of the Class II Salt Water Disposal well development and completion technique that is being utilized in GreenHunter Water's Appalachia SWD program, navigate to the video by clicking on "Salt Water Disposal Animation" button on the Operations tab at GreenHunterEnergy.com or click here.
About GreenHunter Water, LLC (a wholly owned subsidiary of GreenHunter Energy, Inc.)
GreenHunter Water, LLC provides Total Water Management Solutions™ in the oilfield. An understanding that there is no single solution to E&P fluids management shapes GreenHunter's technology-agnostic approach to services. In addition to licensing of and joint ventures with manufacturers of mobile water treatment systems (Frac-CycleTM), GreenHunter Water is expanding capacity of salt water disposal facilities, next-generation modular above-ground storage tanks (MAG Tank™), advanced hauling and fresh water logistics services—including 21st Century tracking technologies (RAMCATTM) that allow Shale producers to optimize the efficiency of their water resource management and planning while complying with emerging regulations and reducing cost.
Additional information about GreenHunter Water may be found at www.GreenHunterWater.com
Any statements in this press release about future expectations and prospects for GreenHunter Energy and its business and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Energy undertakes no obligation to update these forward-looking statements in the future.
GreenHunter Energy, Inc.
Jonathan D. Hoopes
President & COO
1048 Texan Trail
Grapevine, TX 76051
Tel: (972) 410-1044
KEYWORDS: United States North America Ohio Texas West Virginia
The article GreenHunter Water Closes on Acquisition of Salt Water Disposal Wells in Marcellus and Utica Shale Plays originally appeared on Fool.com.
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