GreenHunter Resources, Inc. (NYSE MKT: GRH) (NYSE MKT: GRH.PRC) (the “Company”), a diversified water resource, waste management and environmental services company specializing in the unconventional oil and natural gas shale resource plays, announced today an update on the Company’s operations including volume of water handled and disposed during the second quarter of 2013. Total volumes injected increased over 190% versus the same period last year to more than 1,199,000 barrels (BBL) representing a 9% increase compared to the three months ending March 31, 2013. Total billable trucking hours increased 12% in the second quarter compared to the three months ending March 31, 2013. Appalachia During the second quarter of 2013, disposal volumes in the Company’s Appalachia region were over 550,000 barrels (BBL) representing an increase of more than 35% compared to the same period last year and an increase of 13% compared to the three months ending March 31, 2013. Volumes of water handled at the Company’s New Matamoras barge transloading and bulk storage facility increased 14% compared to the prior period ending March 31. Almost all of the sequential New Matamoras volume increase was comprised of high-solids content fluids that are being processed through the Company’s Frac-Cycle® water treatment system. South Texas Volumes of water disposed in South Texas increased 56% during the second quarter compared to the three months ending March 31, 2013. Disposal activities at the company’s Dilley salt water disposal (SWD) facility accounted for almost 73% of the South Texas volumes during the 2 nd quarter. Oklahoma Oklahoma disposal volumes decreased over 60% during the second quarter 2013. As previously announced, a lightning strike and fire during April caused one of our primary SWD wells to become inoperable. The Company is continuing to negotiate with the two insurance companies for settlement of this claim which exceeds $1 million.
Management CommentsCommenting on second quarter operations, Jonathan D. Hoopes, Interim-CEO, President and COO of GreenHunter Resources, said, “We were pleased to see a reversal in the weather-related slowdown that we experienced during the first quarter in the Appalachia region. GreenHunter’s Frac-Cycle® services, which carry substantially higher gross margin as compared to SWD injection, are now fully operational and we are looking forward to assisting upstream E&P companies treat their complex high-solid water. The Dilley SWD in South Texas remains a very good performer and we are seeing strong interest for increased volumes from our existing Eagle Ford customers that we hope to satisfy with the acquisition of additional new rolling stock. At present, GreenHunter Water owns twelve UIC Class II commercial disposal wells, ten of which are currently operational.” 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-Cycle®), 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 GreenHunterResources.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.