GeoMet, Inc (Home) Home   |   Contact Us    
Corporate Governance News

GeoMet, Inc (Home)

Investor Relations

GeoMet Announces New Natural Gas Hedge Positions for 2007 / 2008

HOUSTON, TEXAS.--December 15, 2006 - GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) announced today that it has entered into additional natural gas hedges since it last provided this information on November 9, 2006.

For the Summer 2007, GeoMet has secured costless collars covering a total of 856,000 MMBtus of gas with a floor price of $7.50 and a ceiling price of $9.75.  Additional collars covering a total of 608,000 MMBtus of gas with a floor price of $8.25 and a ceiling price of $11.25 were secured for the Winter 2007 / 2008 period. Additionally, the Company has secured swaps for the First Quarter of 2007 covering a total of 360,000 MMBtus of gas at a price of $7.75.

The schedule below provides a summary of our current hedge positions for the period beginning January 1, 2007.

Three-Way Collars

Weighted Average
Quantity Protection* Floor Cap
MMBtus $/MMBtus $/MMBtus $/MMBtus
First Quarter 2007 900,000 $1.50 $8.20 $11.02
(January - March)
Summer 2007 1,712,000 $1.63 $7.38 $10.50
(April - October)
Winter 2007/2008 1,216,000 $3.00 $9.00 $14.80
(November - March)
Summer 2008 1,712,000 $2.00 $7.00 $10.50
(April - October)
   
   
   
Traditional Collars
 
Quantity Floor Cap
MMBtus $/MMBtus $/MMBtus
First Quarter 2007 0 $0.00 $0.00
(January - March)
Summer 2007 856,000 $7.50 $9.75
(April - October)
Winter 2007/2008 608,000 $8.25 $11.25
(November - March)
Summer 2008 0 $0.00 $0.00
(April - October)
   
   
   
Swaps
 
Quantity
MMBtus $/MMBtus
First Quarter 2007 360,000 $7.75
(January - March)
Summer 2007 0 $0.00
(April - October)
Winter 2007/2008 0 $0.00
(November - March)
Summer 2008 0 $0.00
(April - October)

-----------------------------
* Protection is the difference between the floor and the point where the floor price phases out. It remains a constant premium as prices continue to decline.

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 ssmith@geometcbm.com.

Forward-Looking Statements: 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.