Shares of GreenHunter Energy Inc. (AMEX: GRH), a provider of Total Water Management Solutions for oil and gas exploration and production companies in shale or unconventional oil and gas exploration in the Marcellus, Eagle Ford and Bakken shale plays, have risen sharply in trading today.
GRH shares rose to an intra-day high of $1.98, and at last check, the stock was trading 20.98% higher at $1.96 on volume of 52,659.
GRH shares have been gaining momentum after the company announced that its wholly-owned subsidiary, GreenHunter Water LLC signed into a definitive joint venture agreement to develop seven Class 2 salt water disposal wells. The wells will be located in Gonzalez, Karnes, DeWitt, Frio and La Salle Counties of South Texas.
Once the wells are fully operational, management expects aggregate commercial disposal capacity from the wells to cross 140,000 barrels per day (BBL/D).
Commenting on the transaction, Jonathan D. Hoopes, President of GreenHunter, said that there were 138 drilling rigs running in the five counties that comprise GRH’s Eagle Ford joint venture territory as of the end of April and this represents a 20% increase in drilling rig since the beginning of the year.
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