GeoMet, Inc. Announces Agreement to Sell Alabama Coalbed Methane Properties

GeoMet, Inc. Announces Agreement to Sell Alabama Coalbed Methane Properties 
HOUSTON, TX -- (Marketwired) -- 05/07/13 --  GeoMet, Inc. (OTCQB:
GMET) (NASDAQ: GMETP) ("GeoMet") announced today that it has entered
into an agreement to sell its coalbed methane properties in Alabama
to a private independent oil and gas company with interests in
Alabama, for a purchase price of $63.2 million, subject to customary
purchase price adjustments. The effective date of this transaction is
April 1, 2013, and it is expected to close on or before June 14,
2013, subject to the exercise of preferential rights and customary
closing conditions. GeoMet plans to use the cash proceeds from this
asset divestiture, net of purchase price adjustments and other
transaction related expenditures, to repay borrowings under its
Credit Agreement.  
GeoMet has entered into an amendment to its Credit Agreement, which
became effective as of May 1, 2013 and provides the necessary
consents to sell the Alabama Properties. The amendment requires
repayment of a minimum of $52 million which will result in the
elimination of the "non-conforming" tranche B portion of total
outstanding borrowings. Following the expected use of net proceeds
for repayment of indebtedness, GeoMet's borrowing base will be the
lesser of $83 million or actual outstanding borrowings at such time.  
GeoMet's average net interest in the Alabama Properties produced
approximately 9,700 Mcf of natural gas per day during the month of
March 2013, or approximately 29% of GeoMet's total production for
this time period on the basis of accounting principles generally
accepted in the United States. As of March 31, 2013 and based on
Securities and Exchange Commission guidelines, GeoMet's net proved
reserves attributable to the Alabama Properties were estimated to be
approximately 43 Bcf, all classified as proved developed reserves.  
Lantana Oil & Gas Partners was divestment advisor to GeoMet for the
sales process. 
Forward-Looking Statements Notice
 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. Except for statements of historical
facts, all statements included in the document, including those
preceded by, followed by or that otherwise include the words
"believe," "expects," "anticipates," "intends," "estimates,"
"projects," "target," "goal," "plans," "objective," "should" or
similar expressions or variations on such words are forward-looking
statements, and include statements regarding GeoMet's ability to
close the sale of the Alabama properties, the amount of net proceeds
GeoMet expects to receive after purchase price adjustments, the
borrowing base under GeoMet's Credit Agreement and similar
statements. 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 volatility of future natural gas prices, the
uncertainties involved in estimating quantities of proved natural gas
reserves, changes to the borrowing base under GeoMet's Credit
Agreement made by its lenders, 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 GeoMet
has filed with the SEC. GeoMet undertakes no duty to update or revise
these forward-looking statements. 
About GeoMet, Inc.
 GeoMet, Inc. is engaged in the exploration for
and development and production of natural gas from coal seams
("coalbed methane"). GeoMet's principal operations and producing
properties are located in the Cahaba and Black Warrior Basins in
Alabama, which GeoMet has agreed to sell, and the Central Appalachian
Basin in Virginia and West Virginia. GeoMet also controls additional
coalbed methane and oil and gas development rights, principally in
Alabama, Virginia, and West Virginia.  
For more information please contact 
Stephen M. Smith 
(713) 287-2251 
ssmith@geometcbm.com
or visit GeoMet's website at www.geometinc.com