Oklahoma
Oklahoma disposal volumes decreased over 60% during the second quarter 2013. As previously announced, a lightning strike and fire during April caused one of our primary SWD wells to become inoperable. The Company is continuing to negotiate with the two insurance companies for settlement of this claim which exceeds $1 million.
Management Comments
Commenting on second quarter operations, Jonathan D. Hoopes, Interim-CEO, President and COO of GreenHunter Resources, said, “We were pleased to see a reversal in the weather-related slowdown that we experienced during the first quarter in the Appalachia region. GreenHunter’s Frac-Cycle® services, which carry substantially higher gross margin as compared to SWD injection, are now fully operational and we are looking forward to assisting upstream E&P companies treat their complex high-solid water. The Dilley SWD in South Texas remains a very good performer and we are seeing strong interest for increased volumes from our existing Eagle Ford customers that we hope to satisfy with the acquisition of additional new rolling stock. At present, GreenHunter Water owns twelve UIC Class II commercial disposal wells, ten of which are currently operational.”