GeoMet Announces Plan to Divest Appalachia Producing Properties
HOUSTON, TX -- (Marketwired) -- 11/14/13 -- GeoMet, Inc. (OTCQB:
GMET) (NASDAQ: GMETP) (the "Company") announced today that it has
engaged Lantana Oil & Gas Partners, a Houston-based divestiture firm,
to market substantially all of the Company's coal bed methane
interests located in the Appalachia Basin in McDowell, Wyoming,
Raleigh, Barbour and Taylor Counties of West Virginia and Buchanan
County Virginia. The assets represent coal bed methane vertical wells
and, to a lesser extent, horizontal wells. The operated and
non-operated interests include 406 wells (298 vertical and 108
horizontal wells). Most vertical wells have a 100% working interest
and an average net revenue interest of 80% while the working interest
of the horizontal wells varies from 33% to 100%. The vertical wells
are characterized by shallow production decline curves and long lives
while the horizontal wells display more of the conventional natural
gas well decline characteristics.
Current net sales on these properties are approximately 22.8 MMcf per
day and current net operating cash flows averaged approximately $1.65
million per month for the twelve months ending August 31, 2013 at an
average realized price of $3.58 per Mcf. At September 30, 2013, using
Securities and Exchange Commission guidelines, our net interests in
these wells represented 103.3 BCF and $73.6 million of present value
at 10 percent.
About GeoMet, Inc.
GeoMet, Inc. is primarily engaged in the 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. The
possible sale of any, or all, of the Company's coal bed methane
interests is a forward looking statement. 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
For information on the GeoMet Appalachia CBM sale package and process, please
David G. Nini
Lantana Oil & Gas Partners
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