GeoMet Announces Borrowing Base Determined at $135 Million
HOUSTON, TX--(Marketwire - November 4, 2009) - GeoMet, Inc. (NASDAQ: GMET) today announced
that the Company's bank syndicate, led by Bank of America, set the
Company's borrowing base at $135 million after completing their Fall
borrowing base determination. This represents a less than 4% reduction from
the previous determination of $140 million completed in the Spring of this
year. The next regularly scheduled borrowing base determination will be
based on the December 31, 2009 reserve report as prepared by independent
reserve engineers. Commitments under the credit agreement expire in January
2011 and borrowings at September 30th totaled $119.5 million.
Commenting on the borrowing base determination, William C. Rankin,
Executive Vice President and CFO, said, "We are very pleased with this
outcome in light of gas prices being at a seven-year low. In this
determination, the Company benefited from long lived, shallow decline
reserves, a favorable hedge position and significant reductions in
operating and administrative costs."
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. These forward-looking
statements are subject to certain risks, trends and uncertainties that
could cause actual results to differ materially from those projected.
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.
About GeoMet, Inc.
GeoMet, Inc. is an independent energy company primarily engaged in the
exploration for and development and production of natural gas from coal
seams ("coalbed methane") and non-conventional shallow gas. 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 coalbed methane and oil and gas development rights,
principally in Alabama, British Columbia, Virginia, and West Virginia.
Contact Information: For more information please contact
Stephen M. Smith
(713) 287-2251
John Baldissera
BPC Financial
(800) 368-1217
or visit our website at www.geometinc.com.