Contact Information: Contact: Stephen M. Smith (713) 287-2251 John Baldissera BPC Financial (800) 368-1217 www.geometinc.com
GeoMet, Inc. Announces Favorable Ruling in Its Antitrust Suit Against CNX Gas Corporation and Consol Energy, Inc.
GeoMet Ready to Proceed to Discovery and Trial
| Source: GeoMet, Inc.
HOUSTON, TX--(Marketwire - June 8, 2009) - GeoMet, Inc. (NASDAQ : GMET ) announces that a
state court in Virginia has upheld its principal antitrust claims against
CNX Gas Company LLC, Consol Energy, Inc., and certain of their affiliates
(collectively, "CNX"), which are defendants in GeoMet's lawsuit seeking
$385.6 million in damages for alleged violations of the Virginia Antitrust
Act and other state law claims.
The lawsuit, filed in 2007 by GeoMet and its subsidiaries, seeks damages
from CNX for alleged efforts to monopolize the markets for production and
transportation of coalbed methane in the Oakwood Field in southwestern
Virginia. In 2008, GeoMet amended its complaint in response to a demurrer
ruling from the court, and CNX filed new demurrers to the amended
complaint. On June 3, 2009, the Tazewell County Circuit Court issued a
ruling that denied CNX's demurrers with respect to four of GeoMet's five
state-law antitrust claims for monopolization and attempted monopolization.
The trial court's ruling did grant the demurrers on one antitrust theory
pleaded by GeoMet and on claims of state-law tortious interference. As a
result of this ruling, GeoMet may proceed to full discovery and move
towards a trial on its antitrust monopolization and attempted
monopolization claims, for which it seeks $385.6 million in actual damages,
with the possibility for trebling of those damages under the statute, as
well as injunctive relief. GeoMet intends to aggressively pursue discovery
and trial in this matter.
GeoMet CEO Darby Seré, commenting on the ruling, said: "We are very
pleased with the Court's careful and considered ruling. This is a
substantial step forward for the Company in its efforts to secure just
compensation for the damaging campaign by CNX Gas and Consol Energy to
force GeoMet out of the market for coalbed methane production and
transportation in southwestern Virginia. This ruling is especially
noteworthy in light of CNX's recent disclosure in its public filings that
the Virginia Attorney General is investigating CNX for possible violations
of the Virginia Antitrust Act in connection with CNX's activities in
southwestern Virginia."
Forward-Looking Statements Notice
This press release may contain "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 additional 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.