FAQs

What is CBM and how is it formed?
Coalbed methane is a form of natural gas that occurs in association with coal. During the coalification process large quantities of methane rich gas are generated and stored within coal in naturally occurring fractures, referred to as cleats. Coal is commonly an aquifer because the cleats are generally saturated in water. The methane is held in place by hydraulic pressure from the formation water in cleats and is usually undetected by conventional gas-well drilling technology. If formation pressure is sufficient, methane is retained in an adsorbed state.

To produce the methane, wells are drilled into the coal seam and the reservoir pressure is reduced by pumping out the water. This allows the methane to desorb and flow to the surface through tubing and is sent to a compressor station and into natural gas pipelines. At this point, CMB is gathered, transported, marketed, and priced in the same manner as conventional natural gas.

What is attractive about Coalbed Methane prospects?
Unlike other natural gas sources that have high degrees of geologic risk, coal deposits are wide spread, easily identified and shallow. Therefore the drilling success rate for CBM companies can easily approach 95 to 100%, well above conventional exploration targets. As a result, CBM has low geological risk, low cost and are relatively quick to complete making them very attractive targets.

What is unconventional gas production?
Unconventional gas production is gas that is produced from tight sands, shales and coal bed methane.

Why is it considered unconventional?
Technological advances have recently allowed the exploitation of natural gas reserves found in tight sands, shales and coal beds. Prior to the new technologies, production from these sources was not successful.

Is there potential for growth in the exploration of unconventional sources?
Conservative estimates suggest that in the United States more than 700 TCF of coal bed methane exists, with perhaps 100 TCF economically recoverable with existing technology. Annual U.S. production now exceeds 1.25 TCF annually, accounting for approximately 9% of total U.S. gas production.

It is estimated that by the year 2020, nearly half of the US natural gas supply will come from unconventional sources. All other sources are expected to decline or stay constant over that same time period.

How can I receive press releases and other corporate information?
For your convenience, the Investor Relations Department has made recent financial statements and all press releases and SEC filings available on our website.

Who is GeoMet’s transfer agent? What does a transfer agent do?
American Stock Transfer & Trust (AST) is GeoMet’s transfer agent.

American Stock Transfer and Trust
59 Maiden Lane
New York, NY 10038
Shareholder Services:
(Toll Free) 877.777.0800
 Fax: 718.236.4588
Web site: www.amstock.com
 
Companies that have publicly traded securities typically use transfer agents to keep track of the individuals and entities that own their stocks and bonds. Most transfer agents are banks or trust companies.

AST maintains GeoMet’s stock registry. They handle all issues concerning stock certificates including issuing and canceling certificates, address changes, processing and paying dividends, administering dividend reinvestment programs, resolving issues arising from lost, destroyed or stolen certificates, and answering questions from shareholders about their accounts.

What is the difference between a registered shareholder and a Street name shareholder?
You are a registered shareholder if the security is registered in your name on the issuer’s books and you are in physical possession of a stock certificate which represents your ownership of the security.

You are a beneficial owner or your shares are considered held in Street name if the security is registered in the name of your brokerage firm on the issuer’s books and your brokerage holds the security for you in “book entry” form. This means that you do not receive a certificate. Instead, your broker holds the security in an account for you.

Whom can I contact if I have questions or need more information?
Individuals who have questions or would like to receive additional information about GeoMet may contact: