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Appalachian CBM assets sold

World Coal,

GeoMet Inc has agreed to sell its coalbed methane (CBM) interests and other assets in the Appalachian coal basin to ARP Mountaineer Productions LLC, a wholly owned subsidiary of Atlas Resource Partners, for US$ 107 million.

In November 2013, GeoMet disclosed that it intended to sell the CBM assets, which are in McDowell and Harrison, in Wyoming; Raleigh, Barbour and Taylor Counties, in West Virginia; and Buchanan County, in Virginia.

Current net sales of the properties total 22 million ft3 of CBM. As of September 2013, net interests in the wells represented 103.3 billion ft3 of proved producing reserves.

The deal is expected to close in Q2 2014. GeoMet said a significant portion of the sale proceeds will repay the company’s bank debt of US$ 71 million. 

Edited from various sources by Sam Dodson

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