GeoMet Inc. (Nasdaq: GMETP) engaged Lantana Oil & Gas Partners, a Houston-based divestiture firm, to market substantially all of its coal bed methane interests.
The assets are located in the Appalachia Basin in McDowell, Wyoming, Raleigh, Barbour and Taylor counties, W.Va. and Buchanan County, Va. The assets represent coal bed methane vertical wells and, to a lesser extent, horizontal wells. The operated and non-operated interests include 406 wells with 298 vertical and 108 horizontal wells. Most vertical wells have a 100% working interest and an average net revenue interest of 80% while the working interest of the horizontal wells varies from 33% to 100%. The vertical wells are characterized by shallow production decline curves and long lives while the horizontal wells display more of the conventional natural gas well decline characteristics.
Current net sales on these properties are some 22.8 million cubic feet per day (MMcf/d) and current net operating cash flows averaged $1.65 million per month for the 12 months ending Aug. 31 at an average realized price of $3.58 per thousand cubic foot (Mcf). At Sept. 30, using Securities and Exchange Commission guidelines, our net interests in these wells represented 103.3 billion cubic feet (Bcf) and $73.6 million of present value at 10%.
GeoMet Inc. is primarily engaged in the production of natural gas from coal seams. The company is headquartered in Houston.
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