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.”
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts