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GeoMet, Inc.Announces Execution of Investment Agreement and New Bank Credit Agreement

Houston, Texas – June 4, 2010 - GeoMet, Inc. (NASDAQ: GMET) (the “Company”) announced today that it has executed an Investment Agreement with Sherwood Energy, LLC (”Sherwood”), whereby Sherwood has agreed to purchase up to $40 million of the Company's preferred stock in the event that a proposed preferred stock rights offering is not fully subscribed by its stockholders. Closing of the Sherwood backstop commitment is subject to certain conditions precedent, including approval of the Company’s stockholders, completion by the Company of the proposed $40 million preferred stock rights offering and the effectiveness of a new three year bank credit agreement. The Company expects to use the net proceeds from the rights offering and backstop commitment to reduce the Company’s outstanding borrowings under its senior credit facility.

The Company also announced today that it has executed a three year amended and restated bank credit agreement with its existing group of five banks (the “New Credit Agreement”), which will become effective following completion by the Company of the proposed $40 million preferred stock rights offering and Sherwood backstop commitment. Bank of America Securities LLC and BNP Paribas acted as Co-Lead Arrangers and Bookrunners. In addition to other provisions, the New Credit Agreement extends the maturity date of the Company’s bank credit facility from its current maturity date of May 6, 2011 to a date that is three years from the effective date of the New Credit Agreement. The New Credit Agreement provides for revolving credit borrowings of up to $180 million with an initial borrowing base of $90 million. The borrowing base will be reviewed each June and December with the next redetermination scheduled to take place in December 2010. Effectiveness of the New Credit Agreement is subject to completion of the proposed rights offering and backstop commitment, as well as customary conditions precedent.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of GeoMet, Inc. nor shall there be any sale of such securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

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. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements. In addition, the Company cannot assure that it will be successful in obtaining additional financing on the terms outlined in this press release or otherwise. Careful consideration should be given to the risk factors and other cautionary statements included in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. 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 (, John Baldissera with BPC Financial at (800)368-1217, or visit our website at