Trade Alert for GRH: Now up as much as 18% since coverage started Yesterday. Volume already Greater than 90 Day Average – Dollar Volume Double 90 Day Average
StockGuru’s Profile for GreenHunter Energy, Inc.
This is the condensed version – Full StockGuru Profile Found Here:
GreenHunter Energy, Inc. (NYSE Amex: GRH) is a diversified renewable energy company focused on water resource management, biomass power generation, wind and solar energy projects.
GreenHunter Energy’s Board of Directors and senior management made a decision earlier this year to strategically change the corporate direction to concentrate specifically on water resources management directly related to the oil and natural gas industry.
Focus on Water Needs for Oil and Gas Industry: The significant development presently ongoing in the unconventional resource plays located in the United States, and the ever-increasing needs for water to perform fracture stimulation activities, provides a significant market opportunity for the company.
Seasoned Management: GreenHunter Energy’s management is well-seasoned in the oil field with decades of experience and strong relationships in the exploration and production industry which the company plans to leverage to be a significant player within this growing business segment of water management services.
Closed on Private Placement: In late June, GreeenHunter Energy closed a private placement. Proceeds from this offering will be used for general corporate purposes and to partially fund three separate acquisitions that are planned in the water resource management space.
Water Resource Management Focus
GreenHunter’s commercial focus is specifically on water resources management directly related to the oil and gas industry.
Recent improvements in drilling and completion technologies have unlocked large reserves of hydrocarbons in multiple unconventional resources plays in North America. These new drilling methods often involve a procedure called hydraulic fracturing or hydrofracking. This process involves the injection of large amounts of water, sand and chemicals under high pressures into rock formations to create and prop open fissures to stimulate the production of oil and natural gas. According to the American Petroleum Institute, more than 1 million wells have been safely fracked in the United States during the last 60 years.
Unconventional wells can require more than four million gallons of water to complete a hydrofracking procedure. The Environmental Protection Agency estimates that 70 to 140 billion gallons of water are pumped into 35,000 fracking wells every year. According to other industry sources, the number of fracking wells exceeds 50,000 annually. Because a portion of the water that is used in the hydrofracking process will return to the surface as a by-product or waste stream (commonly referred to by oil and gas operators as frack-flowback), industry procedures for the containment, treatment, transportation, reuse and disposal of these fluids have become well-established.
In addition to frack-flowback, oil and natural gas wells also generate produced salt water or brine which is water from underground formations that is brought to the surface during the normal course of oil or gas production. Because the produced water has been in contact with hydrocarbon-bearing formations, it contains some of the chemical characteristics of the formations and the hydrocarbons. Produced water is the largest volume by-product or waste stream associated with oil and gas exploration and production. Estimates from the U.S. Department of Energy’s National Energy Technology Laboratory (NETL) suggest that the total volume of produced water generated by U.S. onshore and offshore oil and gas production activities is over 20 billion barrels or 882 billion gallons (1 barrel equals 42 U.S.gallons).
While produced water (also known as oil field brine or brine due to its high salinity content) can be reused if certain water quality conditions are met, approximately 95 percent of U.S. onshore produced water generated by the oil and gas industry is disposed of by using high-pressure pumps to inject the water into under-ground geologic formations or is discharged under National Pollutant Discharge Elimination System (NPDES) permits. The remaining 5 percent is managed through beneficial reuse or disposed through other methods including evaporation, percolation pits, and publicly owned treatment works.
Federal, state and local legislation is emerging as a result of the considerable focus that is being directed to the exploitation of North America’s abundant reserves of shale oil and natural gas. New legislation and regulatory initiatives relating to hydraulic fracturing are expected to result in increased costs and additional operating restrictions for oil and gas explorers and producers.
Management Negotiations for Three Acquisitions
GreenHunter management is in negotiations for three separate acquisitions and development projects in the water resource business as relates specifically to the unconventional shale resource plays.
The three unconventional shale plays on which GreenHunter Energy is focused are:
- The Marcellus Shale in the Appalachian Basin
- The Eagle Ford Shale in South Texas
- The Bakken Shale in North Dakota, Montana and Southern Saskatchewan
This is the condensed version – Full StockGuru Profile Found Here:
Contact GreenHunter Energy, Inc.
GreenHunter Energy, Inc.
Jonathan D. Hoopes President & COO
1048 Texan Trail Grapevine, TX 76051
Tel: (972) 410-1044
GRH Disclosure: StockGuru entered into an investor relations consulting and market awareness contract with GreenHunter Energy. We hold not shares and will not be receiving any shares. To avoid all potential conflicts of interest, we never sell shares into the open market during an active market awareness or investor relations program. This means that as we release new information about a particular client company either on our site or otherwise authored by us, you can be confident we are not selling shares at the same time. StockGuru is not a registered investment adviser or a broker/dealer. StockGuru makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. The Company will compensate us three thousand dollars monthly in cash and four thousand two hundred dollars in 144 restricted shares based on the volume weighted average share price for the last five days of each month. Initially, we have been funded the first cash payment and are due the first five thousand shares of this contract as we begin our coverage on July 19, 2011. StockGuru – 1601 Berwick Drive – McKinney, Texas 75070 – (469) 252-3031.