Black Bison Water Services LLC, a provider of services for the disposal of flowback and produced water generated from oil and gas-producing wells, has closed its acquisition of a salt water disposal (SWD) property located in Wyoming's Powder River Basin, (the Reed Well).
The acquisition of the Reed Well was funded with proceeds from a mortgage facility provided by CorEnergy Infrastructure Trust Inc. (NYSE: CORR). 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 1% per annum, escalating at 2% per annum. A variable component initiates after the first year and is contingent on volume growth. Additionally, CorEnergy will purchase a 15% equity option in Black Bison.