StockGuru Trade Alert – AMEX: GRH – GreenHunter Just This Month has Announced Two Very Important Acquisitions
In recent weeks, GreenHunter has announced two water projects. As you can see by their logo above, this is becoming the chief priority of GreenHunter Energy.
Read both below – and even link off and read the full news articles on each.
FIRST – MARCELLUS WATER SERVICE PROPERTY:
GreenHunter Water Announces First Acquisition of Marcellus Water Service Property
West Virginia Facility to Serve Active Appalachian Exploration and Production Companies
GRAPEVINE, Texas, Aug 02, 2011 (BUSINESS WIRE) — GREENHUNTER ENERGY, INC. (NYSE Amex: GRH), a diversified renewable energy company predominately focused on water resource management in the unconventional oil and shale resource plays, announced today that its wholly owned subsidiary, GreenHunter Water, 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 acquisition includes an existing well that has been approved for commercial water disposal.
With this initial acquisition, GreenHunter Water will establish a foothold in the fast-growing Appalachian region. 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 and a heavy equipment and frac tank lay-down yard. The property to be acquired through this transaction is strategically located in the heart of the drilling activity within the Appalachian resource plays of the Marcellus Shale and new Utica Shale, as well as being strategically located nearby existing highways where water hauling trucks are very active.
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.
Commenting on this event, Mr. Jonathan D. Hoopes, President and Chief Operating Officer of GreenHunter Energy, stated, “This important move marks GreenHunter Energy’s formal entry into the water management space. Since deciding to pursue this multi-billion dollar market opportunity earlier this year, we have been exploring how best to leverage management’s oil field experience and long term relationships with established oil and gas producers. We have decided to focus our 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 and we are presently in negotiations for three other potential acquisitions to significantly increase our presence in these unconventional resources plays. We believe that GreenHunter Water is uniquely positioned to grow our asset base and revenues in a manner that should provide exceptional shareholder returns.”
SECOND – THIS WAS ANNOUNCED ABOUT A WEEK AGO – SOUTH TEXAS:
GreenHunter Water Announces Second Water Service Property Acquisition
South Texas Facility to Serve Active Eagle Ford Exploration and Production Companies
GRAPEVINE, Texas, Aug 17, 2011 (BUSINESS WIRE) — GREENHUNTER ENERGY, INC. (NYSE Amex: GRH), a diversified renewable energy company predominately focused on water resource management in the unconventional resource plays, announced today that its wholly-owned subsidiary, GreenHunter Water, has executed a long-term agreement to lease approximately five acres of surface and mineral rights in the Eagle Ford Shale region of South Texas where it will develop a new commercial water service facility.
This lease and development project will establish GreenHunter Water’s presence in and around Wilson County, Texas. The highly active Eagle Ford Shale drilling in South Texas extends predominantly throughout fourteen counties to the north-east and south-west of the facility’s location. The planned use for this location includes one or more salt water disposal wells, a treatment facility for oilfield produced water, frac water and drilling mud and a frac tank lay-down yard. The leased property is strategically located in a high drilling activity region with approximately 90 exploration and production drilling rigs currently active in the immediate area.
This facility is the first of multiple planned locations for GreenHunter Water in the Eagle Ford Shale and is a direct response to a request from a number of operators active in the region to provide a “Total Water Management Solution.”
Mr. Jonathan D. Hoopes, President and Chief Operating Officer of GreenHunter Energy, stated, “This expansion is a proactive message to our current and potential customer base that GreenHunter Water is ready to provide its portfolio of Total Water Management Solutions not only in the Marcellus, but now also the Eagle Ford Shale Play. Management is continuing to explore additional opportunities in both of these active shale plays as we also evaluate water service prospects in the Bakken Shale of North Dakota. Today’s announcement is the result of months of due diligence in locating a property strategically situated in one of the most capacity constrained regions of Texas for water disposal. We are anxious to address a significant under-supply situation of salt water disposal capacity for our customers.”
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
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