HOUSTON, TX--(Marketwire - December 20, 2010) - GeoMet, Inc. (
The Company also announced that it has added new natural gas hedges extending into 2013. The new natural gas hedges are the result of new swap agreements for the periods and volumes and at the prices listed below:
| Period | Price/MMBtu | Volume (MMBtu) | ||||
| • Winter 2011 - 2012 | $5.080 | 912,000 | ||||
| • Summer 2012 | $4.935 | 1,712,000 | ||||
| • Winter 2012 - 2013 | $5.500 | 906,000 |
Following the addition of these hedges, the Company estimates that approximately 60% of its 2011 production is hedged at $6.06 per Mcf and approximately 50% if its 2012 production is hedged at $5.50 per Mcf. An updated schedule of GeoMet's natural gas hedge position as of this date is attached.
Commenting on these events Darby Seré, GeoMet's Chief Executive Officer, said, "The bank's decision to maintain our borrowing base at $90 million is consistent with our request and, we believe provides us with ample borrowing capacity to execute our business plan. Similarly, the additional hedges we have added are consistent with our strategy to protect our liquidity and cash flows during this period of low and uncertain gas prices."
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.
| Summary of Hedges | |||||||||
| Period | MMBtu Day | MMBtu | Floor Price | ||||||
| January - March 2011 | 14,000 | 1,260,000 | $6.877 | ||||||
| Summer 2011 | 12,000 | 2,568,000 | $5.722 | ||||||
| Winter 2011 - 2012 | 14,000 | 2,128,000 | $5.959 | ||||||
| Summer 2012 | 12,000 | 2,568,000 | $5.200 | ||||||
| Winter 2012 - 2013 | 10,000 | 1,510,000 | $5.866 | ||||||
Contact Information:
For more information please contact
Stephen M. Smith
(713) 287-2251
www.geometinc.com