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GeoMet Announces Financial and Operating Results for the Quarter and Nine Months ended September 30, 2011

Houston, Texas—November 9, 2011-GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) today announced its financial and operating results for the quarter and nine months ended September 30, 2011.

J. Darby Seré, GeoMet’s Chairman and Chief Executive Officer, had the following comments, “The Company is reporting a seventh consecutive quarter of Adjusted Net Income even as the gas price environment remains difficult. The results of our current year capital program are being realized as growth in gas sales volumes is accelerating. The combination of this internal growth and the pending closing of our previously announced CBM asset acquisition provides the platform for transformational growth in 2012.”

Third Quarter 2011 Financial and Operating Results

For the quarter ended September 30, 2011, GeoMet reported net income of $2.4 million. Included in net income was a $2.5 million pre-tax, non-cash, mark-to-market gain on natural gas derivative contracts. The Company received net cash payments of $1.7 million from the settlement of natural gas derivative contracts during the current year quarter. Net income for the current year quarter was reduced by $0.4 million from a non-routine charge relating to an asset purchase agreement. For the quarter ended September 30, 2010, GeoMet reported net income of $4.5 million. Included in net income for the quarter ended September 30, 2010 was a $5.1 million pre-tax, non-cash, mark-to-market gain on derivative contracts and a $1.6 million unrealized gain from the change in fair value of the derivative liability associated with our Series A Convertible Redeemable Preferred Stock. The Company received net cash payments of $1.8 million from the settlement of natural gas derivative contracts during the prior year quarter.

For the quarter ended September 30, 2011, GeoMet reported net income available to common stockholders of $0.6 million, or $0.02 per fully diluted share. Included in net income available to common stockholders for the quarter ended September 30, 2011 were non-cash charges of $0.4 million for accretion of preferred stock and $1.4 million for paid-in-kind (“PIK”) dividends paid on preferred stock. For the quarter ended September 30, 2010, GeoMet reported net income available to common stockholders of $4.2 million, or $0.10 per fully diluted share. Included in net income available to common stockholders for the quarter ended September 30, 2010 were non-cash charges of $0.1 million for accretion of preferred stock and $0.2 million for accrued PIK dividends on preferred stock.

Adjusted Net Income for the quarter increased to $1.1 million from $0.4 million in the prior year quarter. Adjusted Net Income is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted Net Income to Net Income.

Adjusted EBITDA for the quarter decreased to $4.5 million from $5.1 million in the prior year quarter. Adjusted EBITDA is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted EBITDA to Net Income.

Revenues, including the effects of cash settlements of natural gas derivative contracts, increased to $10.3 million for the quarter ended September 30, 2011 from $10.1 million in the prior year quarter. The average natural gas price, adjusted for cash settlements of natural gas derivative contracts, was $5.26 per Mcf during the quarter ended September 30, 2011 versus $5.45 per Mcf for the prior year quarter. Revenues, as reported for the quarter ended September 30, 2011 which excludes the effects of cash settlements of natural gas derivative contracts, were $8.6 million, as compared to $8.3 million for the prior year quarter. The average natural gas price, excluding the effects of cash settlements of natural gas derivative contracts, for the quarter ended September 30, 2011 was $4.39 per Mcf as compared to the prior year quarter average of $4.47 per Mcf.

Average net gas sales volumes for the quarter ended September 30, 2011 were 21.1 MMcf per day, a 5% increase from the same quarter in 2010.

Capital expenditures for the quarter ended September 30, 2011 were $5.0 million as compared to $3.6 million for the same quarter in the prior year.

Nine Months Ended September 30, 2011 Financial and Operating Results

For the nine months ended September 30, 2011, GeoMet reported net income of $4.0 million. Included in net income was a $0.1 million pre-tax, non-cash, mark-to-market loss on derivative contracts. The Company received net cash payments of $6.7 million from the settlement of natural gas derivative contracts during the current year period. Net income for the current year period was reduced by $0.4 million from a non-routine charge relating to an asset purchase agreement. For the nine months ended September 30, 2010, GeoMet reported net income of $8.8 million. Included in net income for the nine months ended September 30, 2010 was a $9.8 million pre-tax, non-cash, mark-to-market gain on derivative contracts and a $1.6 million unrealized gain from the change in fair value of the derivative liability associated with our Series A Convertible Redeemable Preferred Stock. Net income for the prior year period was reduced by $1.4 million from a non-routine charge relating to a terminated financing transaction and a terminated effort to sell certain gas properties. The Company received net cash payments of $5.5 million from the settlement of natural gas derivative contracts during the prior year period.

For the nine months ended September 30, 2011, GeoMet reported a net loss available to common stockholders of $1.4 million, or $0.03 per fully diluted share. Included in net loss available to common stockholders for the nine months ended September 30, 2011 were non-cash charges of $1.3 million for accretion of preferred stock and $4.0 million for PIK dividends paid on preferred stock. For the nine months ended September 30, 2010, GeoMet reported net income available to common stockholders of $8.5 million, or $0.21 per fully diluted share. Included in net income available to common stockholders for the nine months ended September 30, 2010 were non-cash charges of $0.1 million for accretion of preferred stock and $0.2 million for accrued PIK dividends on preferred stock.

Adjusted Net Income for the nine months ended September 30, 2011 increased to $4.2 million from $2.6 million in the prior year period. Adjusted Net Income is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted Net Income to Net Income.

Adjusted EBITDA for the nine months ended September 30, 2011 increased to $15.2 million from $14.1 million in the prior year period. Adjusted EBITDA is a non-GAAP measure. See the accompanying table for a reconciliation of Adjusted EBITDA to Net Income.

Revenues, including the effects of cash settlements of natural gas derivative contracts, increased to $31.6 million for the nine months ended September 30, 2011 from $31.5 million in the prior year period. The average natural gas price, adjusted for cash settlements of natural gas derivative contracts, was $5.59 per Mcf during the nine months ended September 30, 2011 versus $5.70 per Mcf for the prior year period. Revenues, as reported for the nine months ended September 30, 2011, which excludes the effects of cash settlements of natural gas derivative contracts, were $24.9 million, as compared to $26.0 million for the prior year period. The average natural gas price, excluding the effects of cash settlements of natural gas derivative contracts, for the nine months ended September 30, 2011 was $4.40 per Mcf as compared to the prior year period average of $4.70 per Mcf.

Average net gas sales volumes for the nine months ended September 30, 2011 were 20.6 MMcf per day, a 2% increase from the same period in 2010.

Capital expenditures for the nine months ended September 30, 2011 were $13.6 million as compared to $8.4 million for the same period in 2010.

Third Quarter 2011 Operational and Financial Statements

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. 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 our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in estimating quantities of proved oil and natural gas reserves, in prospect development and property acquisitions and in projecting future rates of production, the timing of development expenditures and drilling of wells, 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.

Conference Call Information

GeoMet will hold its quarterly conference call to discuss the results for the quarter and nine months ended September 30, 2011 on November 9, 2011 at 10:30 a.m. Central Time. To participate, dial (800) 967-7143 a few minutes before the call begins. Please reference GeoMet, Inc. conference ID 1990445. The call will also be broadcast live over the Internet from the Company’s website at www.geometinc.com. A replay of the conference call will be accessible shortly after the end of the call on November 9, 2011 and will be available through November 30, 2011. To access the conference call replay, please dial (888) 203-1112 and enter replay passcode 1990445 when prompted.

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 Stephen M. Smith at (713)287-2251 (ssmith@geometcbm.com) or visit our website at www.geometinc.com.