GeoMet Closes on Sale of Alabama Producing Properties
HOUSTON, TX -- (Marketwired) -- 06/17/13 -- GeoMet, Inc. (OTCQB:
GMET) (NASDAQ: GMETP) (the "Company") announced that, on June 14,
2013, it closed the previously announced sale of all of its coal bed
methane properties located in the state of Alabama.
The sale resulted in net proceeds of approximately $62.0 million
after normal and customary purchase price adjustments of $1.2 million
to account for net cash flows from the effective date to the closing
date. Simultaneously with the close of the property sale,
approximately $57.0 million was used to repay outstanding borrowings
under the Company's Credit Agreement and $5.0 million was held in
reserve to pay transaction related costs and expenses, including the
liquidation of certain natural gas hedge positions. After this
repayment, borrowings outstanding under the Credit Agreement totaled
$77.0 million and such amount has been established as the new
borrowing base. In connection with this repayment the non-conforming
"Tranche B" portion of total outstanding borrowings, which has
existed since August 2012, has been eliminated and the Company no
longer has a borrowing base deficiency under the Credit Agreement.
The next scheduled borrowing base determination is expected to occur
on or around December 15th and will be based on the Company's
reserves at June 30th. The Credit Agreement continues to have a
termination date of April 1, 2014.
Lantana Oil & Gas Partners, a Houston based divestiture firm,
represented GeoMet in this transaction.
About GeoMet, Inc.
GeoMet, Inc. is primarily engaged in the
exploration for and development and production of natural gas from
coal seams ("coalbed methane"). Our principal operations and
producing properties are located in the Central Appalachian Basin in
Virginia and West Virginia. We also control additional coalbed
methane and oil and gas development rights, principally in Virginia,
and West Virginia.
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. 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 the volatility of future natural gas prices, our
ability to maintain production levels, increases in operating costs,
environmental and other regulations, 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 the Company has filed with the SEC. GeoMet undertakes
no duty to update or revise these forward-looking statements.
For more information please contact
Stephen M. Smith
or visit our website at www.geometinc.com
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