GreenHunter Resources Announces Production Commencement of the Mills Hunter SWD Facility, Increases Overall GreenHunter Disposal Volumes By 40% Or 6K Barrels/Day

GreenHunter Resources, Inc. (NYSE MKT:

) (NYSE MKT:GRH.PC), a water disposal and total fluids management company operating in the Appalachian Basin, today announced production commencement late last week of the Harris C&W #1 (C&W) and McKelvey M #3 (McKelvey) SWD wells located at the Company's Mills Hunter facility located in southeastern Ohio. The initial combined injection rate for the C&W and McKelvey wells is approximately 6,000 barrels per day, or approximately 3,000 barrels per day each. The increased injection capacity effectively raises GreenHunter's overall disposal volumes from approximately 15,000 barrels per day to approximately 21,000 barrels per day, an increase of approximately 40 percent. Kirk Trosclair, Executive Vice President and Chief Operating Officer said, "After a prolonged delay, we are finally able to report that two new disposal wells are online and operating near full capacity at our largest SWD facility. These wells are the third and fourth wells to be placed in service at the Mills Hunter facility. Two additional wells are in the final approval stage with certain State authorities. While demand for our water disposal services remains strong even during the downturn being experienced today in the energy industry, the regulatory process for adding injection wells to our portfolio has changed over the last year. The entire process from start to finish is taking much longer than initially anticipated. The review and approval process, which previously took around thirty to forty-five days is now taking more than ninety days." Both the C&W and McKelvey wells are recompleted SWD wells from previously existing producing well bores, or what we refer to as "conversion wells". Conversion wells historically have a much lower all-in capital cost. They typically run approximately $500,000 - $600,000 per well, compared to new drill wells which typically can cost between $1.1 million to as much as $1.5 million each. To-date, eleven out of the twelve injection wells in the GreenHunter Resources portfolio are conversion wells. Pending regulatory approval of the two additional wells at the Mills Hunter facility, both of which are conversion wells and are equipped to go online, plus one recently drilled and completed well at the Ritchie Hunter Facility located in Ritchie County, West Virginia, GreenHunter Resources estimates that total company wide injection capacity will reach its near term goal of approximately 32,000 barrels per day.