GreenHunter Water Closes on Significant Acquisition of Appalachian Commercial Water Disposal Facilities
GreenHunter Energy, Inc. (NYSE: GRH) announced today that its wholly owned subsidiary, GreenHunter Water, LLC, has closed on the acquisition of 100% of the ownership interest of three fully operational commercial salt water disposal wells and associated facilities located in Washington County, Ohio and Lee County, Kentucky. The total purchase price for this acquisition was approximately $8.8 Million. The consideration paid included a combination of cash, GreenHunter Energy restricted stock, GreenHunter Energy perpetual preferred stock, and a promissory note due to the Seller.
The assets acquired also included a fleet of nine (9) water hauling vacuum trucks, and 37 frac tanks (500 barrel capacity each). Total current salt water disposal capacity is 9,000 barrels per day (BBL/D), of which 6,000 BBL/D is from two wells located in Ohio and approximately 3,000 BBL/D is from one well located in Kentucky. Due to the strong demand for SWD services in the Marcellus and the evolving Utica Shale plays, utilization rates at the Ohio facility have been at or near 100% capacity for the last several months. Nearly all of the daily capacity in Ohio has been reserved under multiple disposal capacity contracts with major oil & gas companies and large independents active in the region - these capacity contracts also typically contain rights for Hunter Disposal to provide fluid transportation trucking on a first-call basis. Management is presently exploring various options to increase usage at the Kentucky facility by leveraging a combination of truck hauling and barge logistics.
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