Black Bison Water Services, LLC, a provider of services for the disposal of flowback and produced water generated from oil and gas-producing wells, has closed its acquisition of a salt water disposal (SWD) property located in Wyoming's Powder River Basin (the "Reed Well"). The acquisition will be financed utilizing borrowings available to
Black Bison under its newly established mortgage facility.
“With the acquisition of the Reed Well and additional financing now available for completion of the LeMay
Well, Black Bison is very well-positioned to expand its water disposal services business,” said Justin
Haigler, Partner and President of Black Bison. “Another opportunity is currently being evaluated by our
team and we remain optimistic about our near-term prospects. By outsourcing wastewater management
and water disposal to Black Bison, E&P companies can deploy their capital and human resources to more
effectively extract oil and gas.”
The acquisition of the Reed Well was funded with proceeds from a mortgage facility provided by
CorEnergy Infrastructure Trust, Inc. ("CorEnergy”). The mortgage facility will be secured
by Black Bison's SWD properties, which serve oil and gas producers in Wyoming’s Powder River Basin
and Green River Basin.
The 10-year secured financing provides Black Bison with borrowing capacity of $11.5 million and has
base interest of 12 percent per annum, escalating at 2% per annum. A variable component initiates after
the first year and is contingent on volume growth. Additionally, CorEnergy will purchase a 15 percent
equity option in Black Bison.
"Black Bison possesses the knowledge and expertise we value in an operator,” said David Schulte, Chief
Executive Officer of CorEnergy. “Black Bison's entrance into water disposal services satisfies strategic
objectives for CorEnergy.”
“We are thrilled to be partnering with CorEnergy,” Haigler noted. “Both of our firms recognize the current
undersupply of operators and SWD wells in both the Powder River Basin in Wyoming as well as unitized
gathering / SWD systems in the Bakken region of North Dakota. This financing from CorEnergy will allow
Black Bison to expand our portfolio to four SWD wells.”
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