GeoMet Closes Sale of Appalachian Producing Properties and Repays All
Borrowings Under Bank Credit Agreement
HOUSTON, TX -- (Marketwired) -- 05/13/14 -- GeoMet, Inc. (OTCQB:
GMET) (NASDAQ: GMETP) (the "Company") announced that, on May 12,
2014, it closed the previously announced sale of substantially all of
its coalbed methane interests and other assets located in the
Appalachian Basin in McDowell, Harrison, Wyoming, Raleigh, Barbour
and Taylor Counties, West Virginia and Buchanan County, Virginia (the
"Asset Sale"), comprising substantially all of the Company's
remaining assets, to ARP Mountaineer Productions, LLC, a Delaware
limited liability company and a wholly-owned subsidiary of Atlas
Resource Partners, L.P. (NYSE: ARP), a Delaware limited partnership.
The Asset Sale resulted in net proceeds of approximately $97.5
million after customary purchase price adjustments. A final adjusted
purchase price will be settled within 95 days of the closing date.
Simultaneously with closing of the Asset Sale, the Company used $69.1
million of the net proceeds to fully repay all outstanding borrowings
and accrued interest under the Company's bank credit agreement.
Following these payments the Company's bank credit agreement was
terminated. An additional $3.1 million was used to settle all
outstanding natural gas hedge positions.
Lantana Oil & Gas Partners, a Houston based divestiture firm,
represented GeoMet in this transaction.
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 is the Company's ability to complete a merger or other
business combination. 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
Senior Vice President, Chief Financial Officer, Chief Accounting Officer and
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