GreenHunter Water Closes On Acquisition Of Three Existing Salt Water Disposal Wells In Oklahoma

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.”

About GreenHunter Water, LLC (a wholly owned subsidiary or 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

Forward-Looking Statements

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.

Copyright Business Wire 2010

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