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GreenHunter Spuds 1st Eagle Ford Salt Water Injection Well

Source: www.gulfoilandgas.com 8/21/2012, Location: North America

GreenHunter Energy, Inc, a diversified renewable energy company predominately focused on water resource management in the unconventional oil and natural gas shale resource plays, announced 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.”

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