Untitled Document
Untitled Document

GeoMet provides update on pending purchase of CBM assets in Alabama, West Virginia

GeoMet said Oct. 26 that it has been advised by the seller that the party holding the preferential purchase right on certain of the coalbed methane (CBM) properties in West Virginia, with an allocated value of $23.4 million, has irrevocably waived such right. This preferential purchase right was scheduled to expire on or about Dec. 3, 2011, if not earlier exercised or waived.

A portion of the CBM properties being acquired in Alabama remain subject to two preferential rights to purchase by a single party and have an allocated value of $30.8 million. These preferential rights to purchase will expire Oct. 29, 2011, if not earlier exercised or waived.

As a result of the early waiver of the preferential purchase right on certain of the West Virginia CBM properties, the GeoMet now anticipates the transaction will close in the first half of November.

As previously disclosed in the company’s press release of Oct. 17, total consideration for the acquired assets, which include CBM properties in Alabama and West Virginia, certain natural gas hedge positions and a license to use a certain drilling technology, is $90.2 million, subject to adjustment for net proceeds of production after July 1, 2011 (the “effective date”), realized hedge gains subsequent to the effective date, the exercise of the preferential purchase rights on certain of the Alabama CBM properties, and other customary price adjustments.

Related Articles

Atlas Resource Partners closes public offering

03/10/2014

Atlas Resource Partners LP has closed its underwritten public offering and the full exercise of the underwriters’ over-allotment option to purchase additional common units.

Atlas Resource Partners offers common units

03/04/2014

Atlas Resource Partners LP has begun an underwritten public offering of 5.5 million common units representing limited partner interests.

ARP to acquire West Virginia gas production reserves

02/14/2014

Atlas Resource Partners LP has entered into a definitive agreement to acquire 70 Bcfe of natural gas proved reserves in West Virginia and Virginia from GeoMet Inc. for $107 million.

GeoMet closes sale of Alabama coalbed methane assets

06/17/2013

On June 14, 2013, GeoMet Inc. closed the previously announced sale of all of its coal bed methane properties located in the state of Alabama.

More Oil & Gas Financial Articles

Atlas Resource Partners closes public offering

Mon, Mar 10, 2014

Atlas Resource Partners LP has closed its underwritten public offering and the full exercise of the underwriters’ over-allotment option to purchase additional common units.

Atlas Resource Partners offers common units

Tue, Mar 4, 2014

Atlas Resource Partners LP has begun an underwritten public offering of 5.5 million common units representing limited partner interests.

ARP to acquire West Virginia gas production reserves

Fri, Feb 14, 2014

Atlas Resource Partners LP has entered into a definitive agreement to acquire 70 Bcfe of natural gas proved reserves in West Virginia and Virginia from GeoMet Inc. for $107 million.

GeoMet closes sale of Alabama coalbed methane assets

Mon, Jun 17, 2013

On June 14, 2013, GeoMet Inc. closed the previously announced sale of all of its coal bed methane properties located in the state of Alabama.

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ