A private independent oil and gas company with interests in Alabama will purchase the Alabama coalbed methane properties of GeoMet Inc., Houston, for $63.2 million. The buyer’s name has yet to be released.
Closing is expected by June 14, and the transaction’s effective date will be retroactive to Apr. 1. GeoMet plans to use proceeds to repay debt.
GeoMet’s average net interest in the Alabama properties produced 9.7 MMcfd of gas in March, which was 29% of GeoMet’s total production based upon accounting principles generally accepted in the US. Net proved reserves were estimated at 43 bcf, all proved developed, as of Mar. 31.