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GeoMet Announces Financial and Operating Results for the Quarter and Six Months Ended June 30, 2011

Houston, Texas—August 10, 2011-GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) today announced its financial and operating results for the quarter and six months ended June 30, 2011.

J. Darby Seré, GeoMet’s Chairman and Chief Executive Officer, had the following comments, “Despite a continuing low gas price environment, we are pleased to report a sixth consecutive quarter of Adjusted Net Income. Gas sales volumes are rising as a result of our development program at Pond Creek. We continue to be encouraged with the results of our new hydraulic fracturing testing efforts at our Gurnee field with early production rates from our testing averaging multiple times the field wide average production rate per foot of coal completed. We hope to establish the commerciality of further development of the field by the end of the year.”

Second Quarter 2011 Financial and Operating Results

For the quarter ended June 30, 2011, GeoMet reported net income of $1.1 million. Included in net income was a $0.2 million pre-tax, non-cash, mark-to-market gain on derivative contracts. The Company received net cash payments of $1.5 million from derivative contracts during the current quarter. For the quarter ended June 30, 2010, GeoMet reported a net loss of $1.8 million. Included in the net loss for the quarter ended June 30, 2010 was a $3.0 million pre-tax, non-cash, mark-to-market loss on derivative contracts. The Company received net cash payments of $2.2 million from derivative contracts during the prior year quarter.

For the quarter ended June 30, 2011, GeoMet reported a net loss available to common stockholders of $0.7 million, or $0.02 per fully diluted share. Included in net loss available to common stockholders for the quarter ended June 30, 2011 were non-cash charges of $0.4 million for accretion of preferred stock and $1.3 million for paid-in-kind (“PIK”) dividends paid on preferred stock. For the quarter ended June 30, 2010, GeoMet reported a net loss available to common stockholders of $1.8 million, or $0.04 per fully diluted share. No adjustments to the net loss were required to arrive at net loss available to common stockholders as there were no preferred shares outstanding during the quarter ended June 30, 2010.

Adjusted Net Income remained constant at $950,000 for the quarter ended June 30, 2011 as compared to $943,000 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 (Loss).

Adjusted EBITDA for the quarter increased to $4.7 million from $3.3 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 (Loss).

Revenues, including the effects of realized gains from gas derivative contracts, remained constant at $9.9 million for the quarter ended June 30, 2011 as compared to the prior year quarter. The average natural gas price, adjusted for realized gains on derivative contracts, was $5.36 per Mcf during the quarter ended June 30, 2011 versus $5.41 per Mcf for the prior year quarter. Revenues, as reported for the quarter ended June 30, 2011 which excludes the impact of hedges, were $8.4 million, as compared to $7.7 million for the prior year quarter. The average natural gas price, unadjusted for hedging activity, for the quarter ended June 30, 2011 was $4.53 per Mcf as compared to the prior year quarter average of $4.20 per Mcf.

Average net gas sales volumes for the quarter ended June 30, 2011 were 20.2 MMcf per day, a 1% increase from the same quarter in 2010. Net gas sales volumes for the quarter were reduced by approximately 0.5 MMcf per day as a result of a temporary reduction in pipeline delivery capacity resulting from a mechanical accident at one of our compressor stations in our Pond Creek field. Capacity was fully restored by the end of the quarter.

Capital expenditures for the quarter ended June 30, 2011 were $5.5 million as compared to $3.2 million for the same quarter in the prior year, reflecting the increase in activities at our two major fields.

Six Months Ended June 30, 2011 Financial and Operating Results

For the six months ended June 30, 2011, GeoMet reported net income of $1.5 million. Included in net income was a $2.7 million pre-tax, non-cash, mark-to-market loss on derivative contracts. The Company received net cash payments of $5.0 million from derivative contracts during the current period. For the six months ended June 30, 2010, GeoMet reported net income of $4.3 million. Included in net income for the six months ended June 30, 2010 was a $4.7 million pre-tax, non-cash, mark-to-market gain on derivative contracts. The Company received net cash payments of $3.7 million from derivative contracts during the prior year period.

For the six months ended June 30, 2011, GeoMet reported a net loss available to common stockholders of $2.0 million, or $0.05 per fully diluted share. Included in net loss available to common stockholders for the six months ended June 30, 2011 were non-cash charges of $0.9 million for accretion of preferred stock and $2.6 million for PIK dividends paid on preferred stock. For the six months ended June 30, 2010, GeoMet reported net income available to common stockholders of $4.3 million, or $0.11 per fully diluted share. No adjustments to net income were required to arrive at net income available to common stockholders as there were no preferred shares outstanding during the six months ended June 30, 2010.

Adjusted Net Income for the six months ended June 30, 2011 increased to $3.2 million from $2.2 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 (Loss).

Adjusted EBITDA for the six months ended June 30, 2011 increased to $10.7 million from $9.0 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 (Loss).

Revenues, including the effects of realized gains from gas derivative contracts, remained constant at $21.2 million for the six months ended June 30, 2011 as compared to the prior year period. The average natural gas price, adjusted for realized gains on derivative contracts, was $5.77 per Mcf during the six months ended June 30, 2011 versus $5.82 per Mcf for the prior year period. Revenues, as reported for the six months ended June 30, 2011 which excludes the impact of hedges, were $16.3 million, as compared to $17.7 million for the prior year period. The average natural gas price, unadjusted for hedging activity, for the six months ended June 30, 2011 was $4.40 per Mcf as compared to the prior year period average of $4.81 per Mcf.

Average net gas sales volumes for the six months ended June 30, 2011 were 20.3 MMcf per day, a 1% increase from the same period in 2010. Net gas sales volumes for the six month period were reduced by approximately 0.2 MMcf per day as a result of a temporary reduction in pipeline delivery capacity resulting from a mechanical accident at one of our compressor stations in our Pond Creek field. Capacity was fully restored by the end of the period.

Capital expenditures for the six months ended June 30, 2011 were $8.6 million as compared to $4.8 million for the same period in 2010, reflecting the sustained increase in activities at our two major fields.

Second Quarter 2011 Operational and Financial Results

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 year ended June 30, 2011 on August 10, 2011 at 10:30 a.m. Central Time. To participate, dial (888)403-8872 a few minutes before the call begins. Please reference GeoMet, Inc. conference ID 9246859. 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 August 10, 2011 and will be available through August 24, 2011. To access the conference call replay, please dial (888) 203-1112 and enter replay passcode 9246859 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.