Announces Borrowing Base Determined at $135 Million
Houston, Texas – November 4, 2009 - GeoMet, Inc. (NASDAQ: GMET) today announced that the Company’s bank syndicate, led by Bank of America, set the Company’s borrowing base at $135 million after completing their Fall borrowing base determination. This represents a less than 4% reduction from the previous determination of $140 million completed in the Spring of this year. The next regularly scheduled borrowing base determination will be based on the December 31, 2009 reserve report as prepared by independent reserve engineers. Commitments under the credit agreement expire in January 2011 and borrowings at September 30th totaled $119.5 million.
Commenting on the borrowing base determination, William C. Rankin, Executive Vice President and CFO, said, "We are very pleased with this outcome in light of gas prices being at a seven year low. In this determination, the Company benefited from long lived, shallow decline reserves, a favorable hedge position and significant reductions in operating and administrative costs.”
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 (email@example.com), John Baldissera with BPC Financial at (800)368-1217, or visit our website at www.geometinc.com.