Geomet, Inc Announces Private Equity Placement And New Credit Agreement
Houston, January 30, 2006 - GeoMet, Inc. announced today that it has completed the private placement of 10,000,000 shares of GeoMet common stock, including 7,932,977 shares that were sold by certain selling stockholders. The shares were sold in a private placement under Rule 144A, have not been registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Following the completion of this transaction, GeoMet had 32,233,707 common shares of stock outstanding.
GeoMet received net proceeds of approximately $42.5 million, including repayment to it of approximately $17.5 million of outstanding loans by certain selling stockholders. The proceeds received by GeoMet from this transaction will be used to repay existing debt under its bank credit agreement and for general corporate purposes.
Banc of America Securities, LLC acted as the initial purchaser of the shares.
GeoMet also announced today that it has entered into a $150 million amended and restated credit agreement with Bank of America, N.A. as Administrative Agent, BNP Paribas as Syndication Agent and a group of lenders. All outstanding borrowings under this credit agreement become due and payable in January 2011.
About GeoMet, Inc.
GeoMet, Inc. is an independent energy company engaged in the exploration, development and production of natural gas from coal seams (coalbed methane). Our principal operations and producing properties are located in the Cahaba Basin in Alabama and the Appalachian Basin in West Virginia and Virginia. We also control additional coalbed methane development rights, principally in Alabama, West Virginia, Virginia, Louisiana, Colorado, and British Columbia.
For more information please contact William C. Rankin at (713) 287-2257 or firstname.lastname@example.org.
This news release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities of GeoMet, Inc.. The common stock sold in the private placement has not been registered under the Securities Act of 1933, as amended, and was sold pursuant to applicable exemptions from the registration requirements imposed thereby. The common stock sold in the private placement may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E 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.
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