BlueJack Energy Solutions, LLC (“BlueJack”) today announced that it has secured an initial equity commitment of up to $100 million from Energy Spectrum Capital through Energy Spectrum Partners VII LP (“Fund VII”). Formed in the third quarter of 2015, BlueJack provides oil & gas producers with a full suite of waste stream management solutions including saltwater transmission and disposal, solids processing and disposal and wastewater recycling. BlueJack’s initial operations are focused in the Permian Basin and the Marcellus and Utica shale plays.
BlueJack has signed multiple contracts with Laredo Petroleum Inc. (“Laredo”) (NYSE:LPI) for water disposal services in the Permian Basin. Laredo will send to BlueJack a portion of Laredo’s produced and flowback water production from wells drilled within an area encompassing approximately 110,000 acres in Glasscock and Reagan counties in West Texas. To accommodate production from the dedicated acreage, BlueJack constructed two saltwater disposal facilities that will inject into the Ellenburger formation near Big Lake, Texas. Strategically located in Reagan County in the heart of the Permian’s Midland Basin, BlueJack’s Schwinn 5280 facility came into service in February 2016. BlueJack’s Merida 5280 facility is located in Glasscock County and came into service in April 2016. Both facilities serve producers targeting the Spraberry and Wolfcamp formations. Each facility has a permitted capacity of approximately 25,000 barrels per day (BPD). The facilities in place at the Schwinn and Merida sites are large enough to accommodate additional customers and also may be expanded as demand grows.
BlueJack is led by a management and advisory team with more than 100 years of experience in the energy industry. BlueJack Founder, President and CEO Ted Lopez has extensive experience in wastewater management. A proven leader, he also serves as president of an independent company that designs and builds waste management facilities to meet the needs of large public and private companies. Joining Mr. Lopez on the BlueJack management team are Chief Commercial Officer Chris Valenti, Chief Financial Officer Peter Lee and Regional Director of Business Development, Marcellus & Utica, Andrew Kilgore.