GreenHunter Energy, Inc. (NYSE Amex: GRH) knows the oil and gas exploration industry. Management has years of experience in oil and gas exploration and a production company specializing in unconventional resource plays in North America. GreenHunter has built upon not only this experience, but their extensive relationships within the oil and gas industry provide network required to enhance their position and deliver the water resources unconventional drilling requires.
There exists an ever-increasing needs for water to perform fracture stimulation activities.
In their evaluation of the industry needs the GRH business plan considers those facets of their duties required to compete successfully:
- Location
- Low cost construction of planned facilities
- Execution of our acquisition strategy
- Development of strategic relationships
- Achievement of anticipated low cost production model
- Access to adequate debt and equity capital
- Proper and meaningful governmental support including tax incentives and credit enhancements
- Recruitment and retention of experienced management
Current Plan of Operations and Ability to Operate as a Going Concern
GreenHunter anticipates having sufficient cash reserves to meet all anticipated operating obligations for the next twelve months.
These are sourced from:
- The funds from the proceeds from the recently issued private placement offering
- $500 thousand in anticipated proceeds as another progress payment from the sale of Ocotillo wind project
- Letter of guarantee and credit support from chairman and CEO
Additionally, the Company is in the process of seeking additional capital through a number of different sources for working capital and development costs of new water service business and Mesquite Lake plant and water resource projects.
Additional Opportunities
Management, which has a significant background in the oil and gas industry, has identified water reuse and water management opportunities in the energy industry as a significant growth opportunity and is exploring various ways to reposition the Company to serve this growing segment through joint ventures, targeted acquisitions, development and deployment of water resource management technologies, and services including underground injection for disposal, evaporation, pre-treatment of water for underground injection for increasing oil recovery, offsite commercial disposal, onsite remediation and beneficial reuse.
Water Resource Management
The U.S. Department of Energy’s National Energy Technology Laboratory (NETL) estimates that the total volume of produced water generated by U.S. onshore and offshore oil and gas production activities in 2007 was nearly 21 billion barrels or 882 billion gallons (1 barrel equals 42 U.S. gallons).
GreenHunter has the experience to move forward in this industry, the relationships and now the financing. The Company continues to solidify current positions while examining new opportunities.
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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