GreenHunter Energy, Inc. (NYSE Amex: GRH) Financing in Place and Management in Negotiations for Three Acquisitions

GreenHunter Energy, Inc. (NYSE Amex: GRH)

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.

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.

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

To rebuild GreenHunter as a water resource services provider in the oil field, company management is looking to acquire and develop water treatment and water disposal facilities.

GreenHunter management is also in negotiations for partnerships, licensing agreements and joint ventures with providers of and owners of water treatment and water recycling systems and patent holders.

Because a significant business opportunity also exists in the proper handling and transportation of produced brine, frack-flowback and drilling mud, GreenHunter is planning to incorporate advanced logistics and asset management systems to help oil and gas operators reduce their total water resource management costs.

Financing in Place

A portion of GreenHunter Energy’s water resource management business plan for the next twelve months has been funded from a private placement offering completed in June. An additional $500 thousand in proceeds are scheduled to be received in September 2011 from the sale of the Company’s Ocotillo wind project.

The Company announced the closing of a non-brokered private placement of 522,500 Units of GreenHunter Energy, Inc. at a price of $2.00 per unit, for aggregate gross proceeds of $1,045,000, on June 21, 2011.

Additionally, as part of this offering, GreenHunter’s largest institutional shareholder, West Coast Opportunity Fund, LLC, elected to convert 772.5 shares of its 2007 Series A 8% Convertible Preferred Stock and 772.5 shares of its 2008 Series B Convertible Preferred Stock into 772,500 Units of GreenHunter Energy pursuant to the terms of the offering. In conjunction with this closing, GreenHunter’s Chairman and Chief Executive Officer, Gary C. Evans, also elected to convert $500,000 due under an existing promissory note to him into the equivalent Units (250,000 Units) of GreenHunter Energy pursuant to the terms of the offering.

The securities comprising the Units issued under the private placement were issued pursuant to exemptions from the prospectus requirements of applicable securities laws and are subject to resale restrictions prescribed under applicable securities laws including a six month holding period.

GreenHunter’s plan is to acquire and operate assets in the renewable energy sectors of biomass, geothermal, solar, wind, and water management. GreenHunter currently has ongoing business initiatives in biomass through Mesquite Lake, LLC.

GreenHunter Energy, Inc.

Jonathan D. Hoopes President & COO
1048 Texan Trail Grapevine, TX 76051
Tel: (972) 410-1044

Any statements in this release regarding 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.


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