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Oil/Gas Waste Management Startup Secures $100M For Appalachian, Permian Ops

Oil and natural gas waste management startup BlueJack Energy Solutions LLC said Tuesday that it has secured a commitment of up to $100 million from the private equity firm Energy Spectrum Capital to maintain and expand its operations in shale plays located in the Northeast and Southwest.

BlueJack was formed late last year to provide oil and gas producers with waste management solutions, including saltwater transmission and disposal, solids processing and disposal and wastewater recycling. The Dallas-based company's operations are focused in the Permian Basin and the Marcellus and Utica shales.

BlueJack said Tuesday that it has already signed "multiple contracts" with Laredo Petroleum Inc. for water disposal services in the Permian. Laredo plans to send produced and flowback water from its wells within a 110,000 acre stretch in Glasscock and Reagan counties in West Texas to new BlueJack facilities. BlueJack has built two saltwater disposal facilities that will inject the wastewater underground.

One of those facilities is located in Reagan County in the Permian's Midland Basin. Another is located in Glasscock County. Both came into service earlier this year with a permitted capacity of 25,000 b/d to serve producers targeting the Spraberry and Wolfcamp formations. BlueJack said both facilities are large enough to accommodate additional customers and could be expanded as demand grows.

The company was founded by CEO Ted Lopez, who also serves as president of another company that designs and builds waste management facilities.

"Despite the dramatic shift in the commodities price environment, the opportunity for large-scale development of waste stream management and supply-side infrastructure continues to grow and expand," Lopez said. "Producers are focusing on plays with the best economics and are seeking relationships with reliable partners that have specific expertise and the ability to help them optimize operations and reduce lease operating costs."

In the Northeast, BlueJack has hired Andrew Kilgore to serve as regional director of business development to help grow the company's business in the Marcellus and Utica. Energy Spectrum manages private equity funds that make direct investments in companies that acquire, develop and operate midstream energy assets.

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