GreenHunter Energy, Inc. (NYSE Amex: GRH),
a diversified renewable energy company predominately focused on water resource management in the unconventional oil and natural gas shale resource plays, announced today that its wholly owned subsidiary, GreenHunter Water, LLC, has acquired three Class II salt water disposal (SWD) wells located in Kingfisher County, Canadian County, and Washita County, Oklahoma. These existing disposal wells are ideally positioned in the Cana-Woodford (a.k.a. Anadarko Woodford) Shale and Mississippian Lime plays and will bring an additional 10,000 to 15,000 Barrels per day (BBL/D) of commercial SWD capacity to the Company’s water services portfolio. Consideration for the purchase consists of a combination of cash, newly issued GRH common stock and Series C perpetual cumulative preferred shares. Management is budgeting capital expenditures of approximately $500,000 to upgrade the facilities into state-of-the-art operating condition.
The Kingfisher County SWD is completed to a depth interval of 2,763 to 3,050 feet and is located on approximately two surface acres. This well is permitted for daily disposal capacity of 3,000 BBL. The Canadian County SWD is completed to a depth interval of 3,384 to 5,039 feet and is located on approximately two and one-half surface acres. This well is permitted for daily disposal capacity of 5,000 BBL. The Washita County SWD is completed to a depth interval of 9,776 to 9,934 feet and requires performance of a scheduled 5-year mechanical integrity test (MIT) prior to commercial operation. This well is located on three and one-half surface acres and is permitted for daily disposal capacity of 4,000 BBL.
Commenting on this new acquisition in an evolving unconventional resource play, Jonathan D. Hoopes, GreenHunter President and COO stated, “The water cuts are higher in the resource plays that surround these newly acquired SWD wells. According to Baker Hughes, there are currently 39 drilling rigs running in the three Oklahoma counties where we now have disposal capacity. We have witnessed a significant increase in activity within the immediate area of our facilities. We look forward to bringing our Total Water Management Solutions™ into Oklahoma as we work with existing and new clients in this region to further expand our business profile and be in a position to offer exceptional customer service. With this most recent acquisition, GreenHunter Water’s total company-wide SWD daily capacity has increased to 21,000 BBL.”