GreenHunter Energy, Inc. (NYSE Amex: GRH)
GreenHunter Water Announces First Acquisition of Marcellus Water Service Property
West Virginia Facility to Serve Active Appalachian Exploration and Production Companies
There is an ever-increasing need for water to perform fracture stimulation activities in the oil and gas industry; GreenHunter’s focus is specifically on water resources management directly related to the oil and gas industry. Hydrofracking is the process which 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.
Water resource management represents a multi-billion dollar market opportunity which leverages management’s oil field experience and long term relationships with established oil and gas producers. The Company has focused efforts on the Marcellus Shale in the Appalachian Basin, the Eagle Ford Shale in West Texas and the Bakken Shale in the Williston Basin. These unconventional shale plays are experiencing the most prolific growth in activity within the United States.
Three Previously Announced Negotiation Targets
GreenHunter management previously announced it 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
Yesterday, August 2, 2011, GreenHunter announced it has executed a definitive agreement to acquire approximately 99 mineral acres and 84 surface acres located in West Virginia where it will develop a commercial water service facility.
The Appalachian Basin Acquisition
- Includes an existing well that has been approved for commercial water disposal
- Strategically located nearby existing highways where water hauling trucks are very active
This was the first Company listed by GreenHunter in their list of acquisitions.
Appalachian Region Treatment Facility
This initial acquisition is located in the heart of the drilling activity within the Appalachian resource plays of the Marcellus Shale and new Utica Shale.
Planned uses for this location include:
- A treatment facility for oilfield produced water, frac water and drilling mud
- One or more salt water disposal (SWD) wells
- A heavy equipment and frac tank lay-down yard
This development by GreenHunter Water is a direct response to a request for a proposal for water management solutions to support the Marcellus Shale drilling activities of a number of active Appalachian exploration and production companies.
GreenHunter Energy, Inc.
Jonathan D. Hoopes President & COO
1048 Texan Trail Grapevine, TX 76051
Tel: (972) 410-1044
Email: [email protected]
Website: http://www.greenhunterenergy.com/
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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