GeoMet Inc.

GeoMet Inc. has retained Albrecht & Associates to sell a 50% interest in the eastern Pond Creek area in McDowell County, West Virginia. The package includes interest in 147 producing coalbed-methane wells on 12,224 gross contiguous acres (6,112 net; 4,980 held by production). GeoMet will retain the remaining 50% working interest and will continue as operator. Production is from the Pennsylvanian Pottsville coals with depths ranging from 500 feet to 2,400 feet. The wells produce from up to 14 coal seams with total coal thickness averaging 21 feet. Other operators hold and are developing the underlying conventional oil and gas leases. Current net production is 4.6 million cubic feet per day. Total proved net reserves are 36.4 billion cubic feet (31.8 billion proved developed producing). Projected first-year cash flow is $6.3 million. The reserve-life index is 19.5 years. Upside includes 19 proved undeveloped locations. Also included in the sale are approximately 2,700 gross acres where the coal is present but is currently outside the known limits of production. At the current 60-acre spacing, another 45 wells could be drilled. The data room is open. The bid due date is Aug. 14. The effective date is Oct. 1. Contact Harrison Williams, (713) 951‑9586.