GeoMet Inc., Houston, has agreed to sell its coalbed methane interests and other assets in the Appalachian basin to ARP Mountaineer Productions LLC, a wholly owned subsidiary of Atlas Resource Partners LP, for $107 million.
GeoMet in November disclosed its intention to sell the assets, which are in McDowell, Harrison, Wyoming, Raleigh, Barbour, and Taylor Counties, W. Va., and Buchanan County, Va. (OGJ Online, Nov. 14, 2013).
Current net sales on the properties total 22 MMcfd. As of Sept. 30, 2013, net interests in the wells represented 103.3 bcf of proved producing reserves.
The deal is expected to close in the second quarter of this year. GeoMet said a significant portion of the sale proceeds will repay the company's bank debt of $71 million.