Black Bison Water Services has acquired a salt water disposal (SWD) property located in Wyoming’s Powder River Basin. The acquisition of the Reed Well will be financed using funds available to Black Bison under its newly established mortgage facility.
The acquisition of the Reed Well and additional financing will allow the company to expand its water disposal services business. Companies have outsourced wastewater management and water disposal to Black Bison, it said.
The mortgage facility will be secured by Black Bison’s SWD properties, which serve oil and gas producers in Wyoming’s Powder River Basin and Green River Basin.
The 10-year secured financing provides Black Bison with borrowing capacity of $11.5 million and has base interest of 12 percent per annum.
Over the past twelve months, Black Bison has evaluated several salt water handling and disposal opportunities in Wyoming, Utah, North Dakota and Texas. Black Bison has prioritized four actionable Wyoming-based SWD properties to create a meaningful pipeline of projects and potential acquisition opportunities, the company said.
In fast-growing shale plays, oil producers and other non-water disposal companies have been forced to drill their own SWD wells instead of focusing resources on fracturing and drilling.