HOUSTON, TX--(Marketwire - September 14, 2010) -  GeoMet, Inc. (NASDAQ: GMET) (the "Company") announced today that it has completed the sale of four million shares of its Series A Convertible Redeemable Preferred Stock (the "Preferred Stock") at $10.00 per share. Holders of Rights issued in the Company's recently concluded Rights Offering acquired 41% of the Preferred Stock for approximately $16.5 million and Sherwood Energy, LLC acquired the remaining 59% for approximately $23.5 million pursuant to the terms of the Investment Agreement dated June 2, 2010 between the Company and Sherwood. The shares of Preferred Stock will trade on the NASDAQ Global Market under the symbol GMETP.

Proceeds from the sale of the Preferred Stock after paying fees and expenses totaled approximately $37.2 million and were used to reduce bank debt. In addition, the Company announced that its new three year bank credit agreement (the "Credit Agreement") has been declared effective. The Credit Agreement provides for a borrowing base of $90 million and as of September 14, 2010 the Company has initial borrowings outstanding of approximately $80 million.

The increased liquidity will provide working capital to support the Company's multi-year drilling program in the Pond Creek field and its new frac program in the Gurnee field. The Company plans to drill 20 wells in 2010 and at least 20 wells per year through 2013 in Pond Creek. The Company's capital expenditure budget for 2010 is $13.1 million with approximately 80% allocated to development drilling.

In association with these events, Michael Y. McGovern and Gary S. Weber were appointed to the Company's board of directors. Messrs. McGovern and Weber will, along with all other directors, stand for re-election at the Company's annual stockholders' meeting, which is presently scheduled for November 9, 2010.

Darby Seré, President and Chief Executive Officer, commented: "We are very pleased to have the recapitalization of the Company completed, which reduced our debt to capital ratio to 53% from 79% and our debt to EBITDA ratio to 3.68 from 5.39, both pro forma as of June 30, 2010, and provided the driver to extend our credit facility for three years. Following on the heels of our successful cost reduction program and the favorable settlement of long standing litigation, the recapitalization will allow us to focus on developing our assets and growing the Company's production and reserves. Our low operating costs ($2.25 per Mcf in the second quarter of 2010) and our long-lived, shallow decline assets will allow us to do so while maintaining our capital expenditures at levels within our operating cash flows."

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of GeoMet, Inc. nor shall there be any sale of such securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended.

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 events or results to differ materially from the events or results described in the forward-looking statements. In addition, the Company cannot assure that it will be successful in obtaining additional financing on the terms outlined in this press release or otherwise. Careful consideration should be given to the risk factors and other cautionary statements included in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. 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.

For more information please contact Stephen M. Smith at (713) 287-2251 (ssmith@geometcbm.com), John Baldissera with BPC Financial at (800) 368-1217, or visit our website at www.geometinc.com.

Contact Information:

Contacts:

Stephen M. Smith
(713) 287-2251


John Baldissera
BPC Financial
(800) 368-1217

www.geometinc.com