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GeoMet, Inc. Announces Second Quarter 2007 Results

Houston, Texas – August 13, 2007 - GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) announced today its financial and operating results for the second quarter and six months ended June 30, 2007.

Second Quarter 2007 Financial Results
For the quarter ended June 30, 2007, GeoMet recorded net income of $3.0 million or $0.08 per fully diluted share as compared to net income of $2.3 million, or $0.07 per fully diluted share for the same period in 2006. During both periods, net income was impacted by unrealized gains from the change in the market value of its derivative contracts. In the current quarter, the Company experienced an unrealized gain from such derivative contracts of $1.9 million ($1.2 million after income taxes) as compared to a unrealized gain of $1.4 million ($.8 million after income taxes) for the same period in 2006.

EBITDA was $8.5 million for the quarter as compared to $6.4 million in the same period of 2006. Adjusted EBITDA for the quarter increased 31% to $6.7 million compared to $5.1 million for the prior year period. EBITDA and Adjusted EBITDA are non-GAAP measures. See the accompanying table for a reconciliation of net income to EBITDA and of EBITDA to Adjusted EBITDA.    

Net gas sales volumes for the quarter were 19.4 MMcf per day, an 18% increase compared to the second quarter of 2006. Average natural gas prices, adjusted for realized hedging gains, were $7.66 per Mcf during the second quarter 2007 versus $7.10 per Mcf for the same period in 2006. Excluding the impact of hedging, average natural gas prices during the quarter were $7.63 per Mcf as compared to the prior year period average of $6.81 per Mcf.

Capital expenditures incurred during the quarter ended June 30, 2007 were $12.3 million, compared to $23.5 million for the prior year period.

Six Months Ended June 30, 2007 Financial Results
For the six months ended June 30, 2007, GeoMet recorded net income of $2.0 million or $0.05 per fully diluted share as compared to net income of $9.5 million, or $0.28 per fully diluted share for the same period in 2006. During both periods, net income was impacted by unrealized gains or losses from the change in the market value of its derivative contracts. In the current period, the Company experienced an unrealized loss from such derivative contracts of $2.7 million ($1.5 million after income taxes) as compared to a unrealized gain of $10.4 million ($5.9 million after income taxes) for the same period in 2006.

EBITDA was $9.9 million for the six months ended June 30, 2007 as compared to $21.9 million in the same period of 2006. Adjusted EBITDA for the six months increased 10% to $12.9 million as compared to $11.7 million for the prior year period. EBITDA and Adjusted EBITDA are non-GAAP measures. See the accompanying table for a reconciliation of net income to EBITDA and of EBITDA to Adjusted EBITDA.      

Net gas sales volumes for the first half of 2007 were 19.2 MMcf per day, a 22% increase compared to the first half of 2006. Average natural gas prices, adjusted for realized hedging gains or losses, were $7.67 per Mcf during the six months ended June 30, 2007 versus $7.84 per Mcf for the same period in 2006. Excluding the impact of hedging, average natural gas prices for the first six months of 2007 decreased to $7.29 per Mcf as compared to the prior year period average of $7.89 per Mcf.

Capital expenditures incurred during the first half of 2007 were $30.1 million, compared to $37.6 million for the prior year period.

2Q 2007 Earnings Financial Schedules

Conference Call Information
GeoMet will hold its quarterly conference call to discuss second quarter 2007 results on Tuesday, August 14, 2007 at 3:30 p.m. Central Time. To participate, dial (888) 571-8168 a few minutes before the call begins. Please reference GeoMet Inc. conference ID 12098302. 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 available approximately two hours after the end of the call through Friday, August 17, 2007. To access the replay, dial (800) 642-1687 and reference conference ID 12098302. In addition, the webcast will also be archived on the Company’s website.

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 and oil and gas 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 ssmith@geometcbm.com or visit our website at www.geometinc.com.


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 Securities and Exchange Commission. GeoMet undertakes no duty to update or revise these forward-looking statements.