GeoMet announces that the Virginia Supreme Court has vacated the temporary injunction affecting completion of GeoMet's pipeline in Virginia
Houston, Texas – February 16, 2007 - GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) announced today that the Virginia Supreme Court has vacated a temporary injunction affecting completion of its pipeline interconnect from its Pond Creek Field to the Jewel Ridge Pipeline.
As previously announced on January 19, 2007, the Circuit Court of Tazewell County, Virginia issued a temporary injunction which halted GeoMet’s construction of a portion of the 12 mile pipeline it is constructing to interconnect the Company’s production from its Pond Creek field to the Jewel Ridge interstate pipeline operated by East Tennessee Natural Gas, LLC. Following this action today by Virginia’s highest court, CNX Gas Company, LLC (“CNX”) may continue to pursue damages or a partition of the 32 acre property in dispute in the Tazewll court proceeding, but the Supreme Court’s decision permits the Company to complete its pipeline through the disputed property. As a result of this ruling, GeoMet’s pipeline interconnect to the new Jewell Ridge Pipeline is expected to be completed and fully operational in advance of the potential termination of the Company’s existing gathering agreement with an affiliate of CNX on April 30, 2007.
Production from the Pond Creek field accounts for approximately 60% of the Company’s gas production. Currently, gas production from the field is being gathered under an agreement with Cardinal States Gathering Company, an affiliate of CNX, for redelivery into the Columbia Gas Transmission interstate pipeline system.
GeoMet will continue to vigorously pursue its rights in any continuation of this litigation by CNX and the Company will continue to vigorously prosecute the antitrust action it filed against CNX and others as announced yesterday.
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 visit the Company’s web site at www.geometinc.com or contact Steve Smith at (713) 287-2251 or email@example.com.
All statements, other than statements of historical fact, included in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. GeoMet, Inc. assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.