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GeoMet, Inc. Provides Update of its Natural Gas Hedging Position

Houston, Texas - July 22, 2009 - GeoMet, Inc. (NASDAQ: GMET) announced today that it has added new natural gas hedges with protection extending into 2012.  This increase in hedges is the result of new swap agreements for 4,000 MMBtu of natural gas per day for the periods and at the prices listed below:       

Period
Price/MMBtu
Volume (MMBtu)
Summer 2010
$5.695
856,000
Winter 2010-2011
$6.670
604,000
Summer 2011
$6.370
856,000
Winter 2011-2012
$7.120
608,000

 Darby Seré, the Company’s Chief Executive Officer, said, “These new hedges are the latest step in a strategy to protect our liquidity, lower our cost structure, deleverage our balance sheet and extend the maturity of our bank credit facility.  If our recently announced plan to sell a non-operated interest in the eastern portion of our Pond Creek field in West Virginia is successfully completed, we expect to significantly reduce our outstanding indebtedness and extend the maturity of our bank credit facility. We believe these steps will position the Company to pursue its growth opportunities as gas prices recover.” 

An updated schedule of GeoMet’s natural gas hedge position as of this date is attached. 

Hedging Schedule as of July 22, 2009

Forward-Looking Statements Notice

This press release contains “forward-looking statements” within the meaning of Section27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Careful consideration should be given to cautionary statements made in the various reports the Company has filed with the SEC. GeoMet undertakes no duty to update or revise these forward-looking statements.

About GeoMet, Inc.

GeoMet, Inc. is an independent energy company primarily engaged in the exploration for and development and production of natural gas from coal seams (“coalbed methane”) and non-conventional shallow gas. Our principal operations and producing properties are located in the Cahaba Basin in Alabama and the Central Appalachian Basin in West Virginia and Virginia. We also control coalbed methane and oil and gas development rights, principally in Alabama, British Columbia, Virginia, and West Virginia.

For more information please contact Stephen M. Smith at (713)287-2251 (ssmith@geometcbm.com), John Baldissera with BPC Financial at (800)368-1217, or visit our website at www.geometinc.com.