GeoMet Wins Pipeline Dispute in Virginia Supreme Court Ruling
GeoMet, Inc. (NASDAQ:GMET) (“GeoMet” or the “Company”) announced today that the Virginia Supreme Court unanimously ruled in its favor in the pipeline right of way dispute between the Company and CNX Gas Company LLC (“CNX”). The opinion issued this morning reversed the interlocutory order issued May 23, 2007 by the Circuit Court of Buchanan County, Virginia and held that a lease between CNX and Pocahontas Mining Limited Liability Company (“PMC”) did not grant CNX an exclusive right to transport gas across PMC’s property.
Commenting on today’s decision, Darby Sere, GeoMet’s Chairman, President and Chief Executive Officer stated, “We are obviously very pleased with the ruling by the Virginia Supreme Court. The most significant result of this ruling is that our pipeline right-of-way granted by PMC is valid. We can now focus our complete attention on growing our production, reserves and cash flow. With this litigation risk behind us, we expect to increase our capital spending in 2009 to the highest level since 2006.”
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in estimating quantities of proved oil and natural gas reserves, in prospect development and property acquisitions and in projecting future rates of production, the timing of development expenditures and drilling of wells, and the operating hazards attendant to the oil and gas business. In particular, careful consideration should be given to cautionary statements made in the various reports the Company has filed with the SEC. GeoMet undertakes no duty to update or revise these forward-looking statements.
GeoMet, Inc. is an independent energy company primarily engaged in the exploration for and development and production of natural gas from coal seams (“coalbed methane”) and non-conventional shallow gas. Our principal operations and producing properties are located in the Cahaba Basin in Alabama and the Central Appalachian Basin in West Virginia and Virginia. We also control additional coalbed methane and oil and gas development rights, principally in Alabama, British Columbia, Virginia, and West Virginia.
For more information please contact Stephen M. Smith at (713) 287-2251 or firstname.lastname@example.org or visit our website at www.geometinc.com.