GreenHunter water further expands South Texas operations in the Eagle Ford Shale
Friday, Jan 04, 2013
GreenHunter Energy, Inc. (NYSE MKT: GRH) (NYSE MKT: GRH.PRC), a diversified water resource, waste management and environmental services company specializing in the unconventional oil and natural gas shale resource plays, announced today that its wholly owned subsidiary, GreenHunter Water, LLC, has closed as of year-end 2012, on the acquisition of two oilfield water service and construction companies that provide services to oil and natural gas producers in the Eagle Ford Shale. The two entities, White Top Oilfield Construction, LLC (White Top) and Black Water Services, LLC (Black Water), with common management, have been providing services since 2008 to operators active in the Eagle Ford Shale play. Combined assets acquired include twenty six (26) vacuum water hauling trucks, ten (10) dump trucks, six (6) drilling rig wash trailers and seven (7) pieces of heavy equipment. Located in the town of Louise, Wharton County, Texas, with 66 employees, White Top and Black Water service E&P operators predominantly concentrated in the Texas counties of Gonzales, Karnes and DeWitt. With this closing, the total number of water hauling trucks owned and operated by GreenHunter Water in the Eagle Ford Shale region has grown to thirty (30) units.
The combined purchase price for the equity ownership interests in the two companies totaled $3.25 million. Consideration for these acquisitions consisted of $1.2 million in cash, $1.025 million in 41,000 newly issued shares of Series C Perpetual Cumulative Preferred (non-convertible) reflecting the $25 per-share liquidation preference and $1.025 million in 589,657 newly issued shares of GRH restricted common stock reflecting the volume weighted average price of $1.74 per share for the month of December 2012. The issuance of the securities is contingent upon the Company receiving standard approval from the NYSE MKT, LLC.
Commenting on these acquisitions, Jonathan D. Hoopes, GreenHunter President and COO, stated, “White Top and Black Water have assisted in the construction and have been hauling fluids to GreenHunter’s new South Texas SWDs since they came online over the last several months. We are excited to add this large employee pool including three seasoned managers, two full-time dispatchers, three sales people and four pushers to the Eagle Ford business unit of GreenHunter Water. Similar to our Appalachia operations, we expect to realize strong synergies between our SWD facilities and field logistics in the region. Meanwhile, the White Top and Black Water team members have been anxiously awaiting the time when they can begin marketing GreenHunter Water’s entire suite of Total Water Management Solutions including Frac-Cycle™ water recycling and reuse and MAG Tank™ modular above ground storage equipment rental. This transaction greatly improves GreenHunter’s footprint in the fast growing Eagle Ford Shale region where we anticipate seeing a significant increase in the utilization rates of our SWDs as the White Top and Black Water assets and team become integrated into our organization.”
Source: Business Wire
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