GRAPEVINE, Texas, July 27, 2015 (GLOBE NEWSWIRE) -- GreenHunter Resources, Inc. (NYSE MKT:GRH) (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.
About GreenHunter Resources, Inc.
GreenHunter Resources, Inc., through its wholly-owned subsidiaries, GreenHunter Water, LLC, GreenHunter Environmental Solutions, LLC, and GreenHunter Hydrocarbons, LLC, provides Total Water Management Solutions™/Oilfield Fluid Management Solutions™ in the oilfield and its shale plays of the Appalachian Basin. GreenHunter Water continues to expand its services package by increasing down-hole injection capacity with Class II salt water disposal wells and facilities, with the launch of next-generation modular above-ground frac water storage tanks (MAG Tank™), and with advanced water hauling – including a growing fleet of DOT rated 407 trucks, for hauling condensates and water with the presence of condensates. GreenHunter Water has also spearheaded the movement to barge brine water, as barging is a safer and more cost-effective mode of transport than trucking or rail.
GreenHunter Environmental Solutions, LLC offers onsite environmental solutions at the well pad and facilities, with a service package that includes tank and rig cleaning, liquid and solid waste removal/remediation, solidification, and spill response. An understanding that an interconnected suite of services is key to E&P waste stream management shapes GreenHunter Resources’ comprehensive end-to-end approach to services.
GreenHunter Hydrocarbons, LLC offers transportation of hydrocarbons (oil, condensate, and NGLs) and will soon offer storage, processing, and marketing of hydrocarbons (oil, condensate, and NGLs) in the Appalachian region, leveraging off of our existing asset base and infrastructure, which includes up to six different barge terminal locations, presently owned or leased by GreenHunter Resources.
For a visual animation of the Class II Salt Water Disposal well development and completion technique that is being utilized in GreenHunter Water’s Appalachia SWD program, navigate to the video by clicking on “Salt Water Disposal Animation” button on the Operations tab at GreenHunterEnergy.com or click 1.
Additional information about GreenHunter Water may be found at www.GreenHunterResources.com
Any statements in this press release about future expectations and prospects for GreenHunter Resources 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 Resources undertakes no obligation to update these forward-looking statements in the future.
For Further Information Contact: GreenHunter Resources, Inc. Anthony D. Andora Investor Relations 1048 Texan Trail Grapevine, TX 76051 Tel: (720) 317-8927 Aandora@GreenHunterResources.com
Source:GreenHunter Energy, Inc.