GeoMet Announces Plan to Divest Appalachia Producing Properties
Houston, Texas – November 14, 2013 - GeoMet, Inc. (OTCQB: GMET NASDAQ: GMETP) (the “Company”) announced today that it has engaged Lantana Oil & Gas Partners, a Houston-based divestiture firm, to market substantially all of the Company’s coal bed methane interests located in the Appalachia Basin in McDowell, Wyoming, Raleigh, Barbour and Taylor Counties of West Virginia and Buchanan County Virginia. The assets represent coal bed methane vertical wells and, to a lesser extent, horizontal wells. The operated and non-operated interests include 406 wells (298 vertical and 108 horizontal wells). Most vertical wells have a 100% working interest and an average net revenue interest of 80% while the working interest of the horizontal wells varies from 33% to 100%. The vertical wells are characterized by shallow production decline curves and long lives while the horizontal wells display more of the conventional natural gas well decline characteristics.
Current net sales on these properties are approximately 22.8 MMcf per day and current net operating cash flows averaged approximately $1.65 million per month for the twelve months ending August 31, 2013 at an average realized price of $3.58 per Mcf. At September 30, 2013, using Securities and Exchange Commission guidelines, our net interests in these wells represented 103.3 BCF and $73.6 million of present value at 10 percent.
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About GeoMet, Inc.
GeoMet, Inc. is primarily engaged in the production of natural gas from coal seams (“coalbed methane”). Our principal operations and producing properties are located in the Central Appalachian Basin in Virginia and West Virginia. We also control additional coalbed methane and oil and gas development rights, principally in Virginia and West Virginia.
Forward-Looking Statements Notice
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The possible sale of any, or all, of the Company’s coal bed methane interests is a forward looking statement. Except for statements of historical facts, all statements included in the document, including those preceded by, followed by or that otherwise include the words “believe,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” “target,” “goal,” “plans,” “objective,” “should” or similar expressions or variations on such words are 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 volatility of future natural gas prices, our ability to maintain production levels, increases in operating costs, environmental and other regulations, and the operating hazards attendant to the oil and gas business. In particular, 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.
For more information please contact Stephen M. Smith at (713) 287-2251 (email@example.com), or visit our website at www.geometinc.com.
For information on the GeoMet Appalachia CBM sale package and process, please contact David G. Nini (Lantana Oil & Gas Partners) at 713-426-9001 (firstname.lastname@example.org) or visit Lantana’s website at www.lantanaog.com