GreenHunter Water Closes On Acquisition Of Three Existing Salt Water Disposal Wells In Oklahoma

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GreenHunter Water Closes On Acquisition Of Three Existing Salt Water Disposal Wells In Oklahoma

Greentech Lead America: GreenHunter Energy, a
diversified renewable energy company focused on water resource management,
announced its wholly owned subsidiary, GreenHunter Water, has acquired three
Class II salt water disposal (SWD) wells located in Kingfisher County, Canadian
County, and Washita County, Oklahoma.

With this acquisition, GreenHunter Water’s total
company-wide SWD daily capacity has increased to 21,000 BBL

These existing disposal wells are ideally positioned in
the Cana-Woodford Shale and Mississippian Lime plays, and are expected to bring
an additional 10,000 to 15,000 Barrels per day (BBL/D) of commercial SWD
capacity to the Company’s water services portfolio.

The Kingfisher County SWD is completed to a depth
interval of 2,763 to 3,050 feet and is located on approximately two surface
acres. The well can dispose 3,000 BBL water daily. The Canadian County SWD is
completed to a depth interval of 3,384 to 5,039 feet and is located on
approximately two and one-half surface acres.

The Washita County SWD is completed to a depth interval
of 9,776 to 9,934 feet and requires performance of a scheduled 5-year
mechanical integrity test (MIT) prior to commercial operation. This well is
located on three and one-half surface acres and is permitted for daily disposal
capacity of 4,000 BBL.

The purchase consideration includes cash, newly issued
GRH common stock and Series C perpetual cumulative preferred shares. Management
is budgeting capital expenditures of approximately $500,000 to upgrade the
facilities into state-of-the-art operating condition.

Jonathan D. Hoopes, GreenHunter president and COO, said,
“The water cuts are higher in the resource plays that surround these newly
acquired SWD wells.”

According to oilfield services company Baker Hughes,
there are currently 39 drilling rigs running in the three Oklahoma counties
where GreenHunter Energy now has disposal capacity.

“We have witnessed a significant increase in activity
within the immediate area of our facilities,” Hoopes said. “We look forward to
bringing our Total Water Management Solutions into Oklahoma as we work with
existing and new clients in this region to further expand our business profile
and be in a position to offer exceptional customer service.”

GreenHunter Water acquires Appalachian commercial salt
water disposal facilities

Earlier this year, GreenHunter Energy announced that its
wholly owned subsidiary, GreenHunter Water, has acquired three fully
operational commercial salt water disposal (SWD) wells and associated
facilities located in Washington County, Ohio and Lee County, Kentucky for $8.8
Million.

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