GeoMet Announces Agreement to Purchase Coalbed Methane Assets

GeoMet, Inc. GMET announced today that it has executed definitive agreements with a privately-held company to purchase coalbed methane assets in Alabama and West Virginia, certain natural gas hedge positions, and a license to use a certain drilling technology. The effective date of the transaction is July 1, 2011 and is subject to customary closing conditions and purchase price adjustments, including the exercise, waiver or expiration of the preferential purchase rights described below. The Company also announced a new amended and restated bank credit agreement which it intends to use to finance the acquisition.