GreenHunter Resources Receives Letter from NYSE MKT

GreenHunter Resources Receives Letter from NYSE MKT

GRAPEVINE, Texas--(BUSINESS WIRE)-- GreenHunter Resources, Inc. (NYSE MKT: GRH and 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 on May 21, 2013, the Company received notice from the Exchange Staff of the NYSE MKT LLC indicating that the Company has not met one of the Exchange's continued listing requirements of the NYSE MKT LLC's Company Guide due to the failure to timely file its Quarterly Report on Form 10-Q for the period ended March 31, 2013 as required by Sections 134 and 1101 of the Company Guide.


The Company has been afforded the opportunity to submit a plan of compliance to the Exchange by June 4, 2013, that demonstrates the Company's ability to regain compliance with Sections 134 and 1101 by August 15, 2013. The Company intends to submit a plan by the time specified, however, if the plan is not accepted by the Exchange, the Company will be subject to delisting procedures as set forth in Section 1010 and Part 12 of the Company Guide.

As previously announced, the Company believes it will file its Quarterly Report on Form 10-Q for the period ended March 31, 2013 by June 10, 2013. On December 31, 2012, the Company acquired two privately held oilfield water service and construction companies that provide services to oil and natural gas producers in the Eagle Ford Shale. The two acquired entities had previously been providing services to operators active in the Eagle Ford Shale play. The Company has been diligently working to consolidate the financial statements from these two private companies into the Company's financial statements in accordance with GAAP but needs additional time to complete the consolidation.

About GreenHunter Water, LLC (a wholly owned subsidiary or GreenHunter Resources, 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.

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, Eagle Ford, Mississippian Lime and Bakken SWD program, navigate to the video by clicking on "Salt Water Disposal Animation" button on the Operations tab at GreenHunterEnergy.com or click here.

Additional information about GreenHunter Water may be found at www.GreenHunterWater.com.

Forward-Looking Statements

Any statements in this press release about future expectations and prospects for GreenHunter Resources 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 Resources undertakes no obligation to update these forward-looking statements in the future.

CONSOLIDATED STATEMENT OF OPERATIONS

For the Year Ended December 31,

2012

2011

REVENUES:

Water disposal revenue

$

8,810,173

$

Transportation revenue

6,722,055

Storage rental revenue and other

1,537,865

1,105,340

Total revenues

17,070,093

1,105,340

COST OF SERVICES PROVIDED:

Cost of services provided

9,501,438

1,065,154

Project costs

3,316

Depreciation and accretion expense

1,870,809

189,656

Loss on impairment of biomass project

15,873,013

Stock based compensation

4,367,604

818,272

Selling, general and administrative

5,657,322

3,339,824

Total costs and expenses

37,270,186

5,416,222

OPERATING LOSS

(20,200,093

)

(4,310,882

)

OTHER INCOME (EXPENSE):

Interest and other income

15,317

461,213

Interest, amortization and other expense

(973,262

)

(781,791

)

Gain on sale of assets

3,000

Gain on settlements of payables

403,011

Gain on debt extinguishment

204,501

Unrealized gain (loss) on convertible securities

23,857

(185,944

)

Total other expense

(323,576

)

(506,522

)

Net loss before taxes

(20,523,669

)

(4,817,404

)

Income tax expense

(5,000

)

Loss from continuing operations

(20,528,669

)

(4,817,404

)

Gain on disposal of discontinued operations

2,936,500

Net Loss

(17,592,169

)

(4,817,404

)

Preferred stock dividends

(1,926,723

)

(679,106

)

Deemed dividend on Series A Preferred Stock conversion

923,565

Gain on Series B Preferred Stock conversion

(2,573,025

)

Net loss to common stockholders

$

(21,168,352

)

$

(5,496,510

)

Weighted average shares outstanding, basic and diluted

29,082,343

24,669,783

Net loss per share from continuing operations, basic & diluted

$

(0.83

)

$

(0.22

)

Net earnings per share from discontinued operations, basic & diluted

$

.10

$

Net loss per share, basic & diluted

$

(0.73

)

$

(0.22

)

SELECTED BALANCE SHEET DATA

December 31,

2012

2011

Cash and cash equivalents

1,765,642

84,823

Total current assets

8,457,532

570,991

Net fixed assets

41,410,231

20,892,668

Total assets

52,855,226

23,166,080

Total current liabilities

19,605,885

14,272,630

Total long-term liabilities

10,139,289

2,076,119

Total stockholders' equity

23,110,052

6,817,331



GreenHunter Resources, Inc.
Jonathan D. Hoopes
Interim CEO, President and COO
1048 Texan Trail
Grapevine, TX 76051
Tel: (972) 410-1044

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS:

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