GRAPEVINE, Texas--(BUSINESS WIRE)--GreenHunter Energy, Inc. (NYSE MKT: GRH) (NYSE MKT: GRH.PRC), a diversified renewable energy company predominately focused on water resource management in the unconventional oil and natural gas shale resource plays, announced today that its wholly-owned subsidiary, GreenHunter Water, LLC, has spud its first Class II salt water disposal (SWD) well in South Texas. This new SWD well will predominately handle water associated with drilling and production activity in the Eagle Ford Shale with this first well to be located near the town of Helena, Karnes County, Texas. This new well is the first of ten new SWDs to be drilled in this region.
Drilling commenced last week and is expected to be at TD and complete sometime near the end of August. As called for under the Underground Injection Control (UIC) permit that was issued by the Texas Railroad Commission (TRRC), the well will be drilled to the Middle Wilcox disposal formation at a total depth of 7,650 feet with a top injection interval of 6,840 feet. When fully operational, management expects commercial disposal capacity at this SWD location to be approximately 10,000 barrels of salt water and other non-hazardous oil and gas waste per day. The third party drilling contractor is utilizing a Schramm TXD 200 that is capable of drilling up to 10,000 feet total depth. Management is presently budgeting capital expenditures of approximately $2 million for this new state of the art injection facility.
Commenting on this development, Kirk Trosclair, Executive Vice President of the Company stated, “GreenHunter is excited to announce this latest development in a region that is experiencing significant drilling activity for both the Eagle Ford and Pearsall Shale. This new well location has been designed to be a ‘Class A’ facility with environmental and safety attributes that exceed requirements for SWD’s in the state of Texas. Additional potential uses for this six acre site include the potential for Frac-CycleTM water treatment and MAG Tank™ rentals providing producers greater access in the field to our Company’s Total Water Management Solutions.”
For a visual animation of the Class II Salt Water Disposal well development and completion technique that will be utilized in GreenHunter Water’s Eagle Ford program, navigate to the video by clicking on “Salt Water Disposal Animation” button on the Operations tab at GreenHunterEnergy.com or click here.
About GreenHunter Energy, Inc.
GreenHunter Energy, Inc. is a diversified renewable energy company predominately focused on water resource management in the unconventional oil and natural gas shale resource plays. Through its wholly owned subsidiary, GreenHunter Water, LLC, the Company provides Total Water Management Solutions™ in the oilfield. An understanding that there is no single solution to E&P fluids management shapes GreenHunter’s technology-agnostic approach to services. In addition to licensing of and joint ventures with manufacturers of mobile water treatment systems (Frac-CycleTM), GreenHunter Water is expanding capacity of salt water disposal facilities, next-generation modular above-ground storage tanks (MAG Tank™), advanced hauling and fresh water logistics services—including 21st Century tracking technologies (RAMCATTM) that allow Shale producers to optimize the efficiency of their water resource management and planning while complying with emerging regulations and reducing cost.
Additional information about GreenHunter Water may be found at www.GreenHunterWater.com
Forward-Looking Statements
Any statements in this press release about 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.