GreenHunter Water Begins Sales of MAG Tank
66-Panel Modular Above Ground Tank to Hold 60,000 Barrels of Fresh Water at a Multi-Well Utica Drill Pad in Ohio
GRAPEVINE, Texas--(BUSINESS WIRE)-- 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 begun sales of its first MAG Tank". Sixty-six MAG Panels" are in the process of being delivered to an existing customer. The large independent oil and gas producer will use the MAG Tank as a fresh water holding impoundment at a multi-well Utica Shale drill pad located in southeastern Ohio.
PROPRIETARY MODULAR ABOVE GROUND TANK SYSTEM
GreenHunters next generation modular above ground MAG Tank design was engineered to accommodate heavy fluids in addition to fresh water. The proprietary and patent-pending design uses standardized steel modular trapezoidal MAG Panels" that are capable of supporting fluid weight independent of other panels together with a reusable impermeable liner. MAG Panels allow operators to configure tank footprints to match the well pad in multiple shapes and in virtually unlimited capacities above 11,000 barrels. The MAG Tank meets or exceeds industry standards for above ground oilfield fluid storage and provides oil and gas operators with a flexible, low-cost and environmentally friendly water storage solution as compared to traditional 500 barrel frac tanks and earthen impoundments. GreenHunters MAG Panels are available for short-term and long-term lease or purchase.
Commenting on the sale of the industrys first MAG Tank, Mr. Jonathan D. Hoopes, Interim CEO, President and COO, stated, Our first sale of the MAG Tank supports our business strategy and belief that producers need an alternative above-ground storage tank option beyond second-generation 40,000 barrel cylindrical tanks. The unique design of the MAG Panel gives operators a very flexible solution to match their drilling program at a variety of field locations. Unlike many other above-ground tank providers, GreenHunter offers a lease and/or purchase option to meet specific operators business model objectives. We continue to look for ways to assist operators in their goal to reduce truck traffic and reduce below ground containment. We anticipate significant demand for this new proprietary product.
About GreenHunter Water, LLC (a wholly owned subsidiary or GreenHunter Energy, Inc.)
GreenHunter Water, LLC provides Total Water Management Solutions" in the oilfield. An understanding that there is no single solution to E&P fluids management shapes GreenHunters technology-agnostic approach to services. In addition to licensing of and joint ventures with manufacturers of mobile water treatment systems (Frac-CycleTM), GreenHunter Water is expanding capacity of salt water disposal facilities, next-generation modular above-ground storage tanks (MAG Tank"), advanced hauling and fresh water logistics servicesincluding 21st Century tracking technologies (RAMCATTM) that allow Shale producers to optimize the efficiency of their water resource management and planning while complying with emerging regulations and reducing cost.
For a visual animation of the Class II Salt Water Disposal well development and completion technique that is being utilized in GreenHunter Waters Appalachia, Eagle Ford, Mississippian Lime and Bakken SWD program, navigate to the video by clicking on Salt Water Disposal Animation button on the Operations tab at GreenHunterEnergy.com or click here.
Additional information about GreenHunter Water may be found at www.GreenHunterWater.com.
Any statements in this press release about future expectations and prospects for GreenHunter Energy (GRH) 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 Energy undertakes no obligation to update these forward-looking statements in the future.
Non-GAAP Measures: Reconciliation to Standardized Measures
This release contains certain financial measures that are non-GAAP measures. We have provided reconciliations within this release of the non-GAAP financial measures to the most directly comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, measures for financial performance prepared in accordance with GAAP that are presented in this release. We believe adjusted EBITDA (as defined by period net loss as adjusted for income tax, interest expense, depreciation expense, impairment of asset value, non-cash stock based compensation and other non cash gains) to be an important measure for evaluating the companys operational progress and as useful information to investors because it is widely used by professional analysts and investors in evaluating companies in a state of high growth. However, adjusted EBITDA should not be considered as an alternative to the standardized measure as computed under GAAP.
GreenHunter Energy, Inc.
Jonathan D. Hoopes
Interim CEO, President and COO
1048 Texan Trail
Grapevine, TX 76051
Tel: (972) 410-1044
Source: GreenHunter Energy, Inc.Copyright Business Wire 2013