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Appalachia Driving GreenHunter Water Handling Growth

Water resources company GreenHunter Resources Inc., which serves oil and gas shale producers, said company-wide volume of fluids handled during the third quarter was up 130% compared with a year ago.

The volume of fluids increased to 1.205 million barrels, representing a 0.4% increase compared to the second quarter, even though the company was operating two fewer salt water disposal (SWD) wells. One well in the Eagle Ford Shale was sold, and one SWD well in Oklahoma was shut-in due to a fire caused by a lightning strike.

In Appalachia, the highest margin division, more than 500,000 barrels were handled, representing an increase of more than 10% compared with the same period last year and an increase of 18% from the second quarter. Volumes of water handled at the company's New Matamoras, OH, barge transloading and bulk storage facility increased 29% compared to the second quarter (see Shale Daily,July 1). Appalachia truck hours increased 40% during the third quarter compared to the second quarter. Transportation billings hours in Appalachia also increased sequentially by 45%.

"Considering that we were operating during the third quarter of this year with two fewer SWD wells in our portfolio, we are very pleased with our efficiency improvements and our overall increase in water disposal volumes," said GreenHunter President Jonathan D. Hoopes. "The company's business activity in the Appalachia region remains very robust, and management is actively pursuing significant new SWD well expansion opportunities with a goal to double daily disposal capacity in this region by mid-year 2014."

Volumes of water disposed in South Texas decreased 21% during the third quarter compared to the second following the sale of a disposal well in Karnes County, TX. Meanwhile, disposal volumes at the company's Dilley SWD in Frio County, which is operating near capacity, increased 3% from the second quarter. Demand in Frio County is driving plans to increase pump capacity, onsite storage tank capabilities, as well as the number of company-owned and operated trucks, GreenHunter said.

In Oklahoma, disposal volumes decreased by about 2% during the third quarter.

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