GeoMet Announces Waiver of All Preferential Purchase Rights on Pending Purchase of Coalbed Methane Assets
Houston, Texas – October 28, 2011...GeoMet, Inc. (NASDAQ: GMET) (the “Company” or “GeoMet”) announced today that the party holding two preferential purchase rights on certain of the coalbed methane (“CBM”) properties in Alabama, with an allocated value of $30.8 million, has now waived its preferential purchase rights.
As a result of the waiver of these two preferential purchase rights, and the previously announced waiver of the preferential purchase right on certain of the West Virginia CBM properties, the pending CBM asset purchase is no longer subject to any preferential purchase rights.
As previously disclosed in the Company’s press release of October 17, 2011, total consideration for the acquired assets, which include CBM properties in Alabama and West Virginia, certain natural gas hedge positions and a license to use a certain drilling technology, is $90.2 million, subject to adjustment for net proceeds of production after July 1, 2011 (the “Effective Date”), realized hedge gains subsequent to the Effective Date, and other customary price adjustments.
Forward-Looking Statements Notice
This press release may contain “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. The anticipated final purchase price, the closing of the acquisition, the closing date, financing of the transaction and other statements that express anticipated events are all forward-looking statements. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the results of our continuing due diligence, our continued compliance with our existing credit facility, other financing alternatives available to the Company, reserve estimates, future prices and production costs, and actions by holders of preferential rights. In particular, careful consideration should be given to cautionary statements made in the various reports the Company has filed with the SEC, including its Form 10-K for fiscal year 2010. 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 additional coalbed methane and oil and gas development rights, principally in Alabama, British Columbia, Virginia, and West Virginia. For more information please contact Steve Smith at (713)287-2251 (email@example.com) or visit our website at www.geometinc.com.