GeoMet, Inc. Announces Planning for Initial 25 Development Wells at Peace River Project.
Houston, Texas – July 3, 2007 - GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) announced today the decision to move its Peace River exploration and evaluation project (the “Project”) into the next phase of activity. GeoMet’s wholly-owned Canadian operating subsidiary, Hudson’s Hope Gas, Ltd., will immediately begin the necessary steps to drill approximately 25 wells. The Project consists of approximately 44,468 gross acres (22,334 acres, net to the Company) in the Peace River area near Hudson’s Hope, British Columbia. GeoMet is the operator and owns a 50% working interest in the Project. Canada Energy Partners Inc. (TSV-X: CE) owns the remaining interest.
During the last three years, the Company has drilled or recompleted seven production test wells, one produced water disposal well and conducted gas desorption tests on all the targeted coal seams. The Company has recently completed an extensive economic evaluation based on the test well program and projected development and operating costs, which yielded attractive results.
Hudson’s Hope Gas, Ltd. will begin consultations with affected communities and First Nations (Canadian indigenous populations). GeoMet will begin the design of the initial drilling plan which will include at least one produced water disposal well and the necessary project infrastructure and gas treating and sales facilities. Thereafter, GeoMet will finalize permitting and, after final approval by the Company’s Board of Directors, initiate construction of drilling locations and infrastructure. Drilling would commence sometime thereafter depending upon seasonal operating restrictions and/or conditions.
About GeoMet, Inc.
GeoMet, Inc. is an independent energy company engaged in the exploration for and development and production of natural gas from coal seams (“coalbed methane” or “CBM”). 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 development rights, principally in Alabama, British Columbia, Colorado, Louisiana, Virginia, and West Virginia.
For more information please contact Stephen M. Smith at (713) 287-2251 or firstname.lastname@example.org or visit our website at www.geometinc.com.
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. 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 Securities and Exchange Commission. GeoMet undertakes no duty to update or revise these forward looking statements.