GeoMet, Inc.

18 Feb 2014material agreement● NeutralMajor

On February 13, 2014 GeoMet agreed to sell substantially all its remaining coalbed methane assets in West Virginia and Buchanan County, Virginia to ARP Mountaineer Productions, a subsidiary of Atlas Resource Partners, for $107 million, subject to adjustments, with closing expected in Q2 2014. Proceeds are to repay the bank debt (about $71 million per the press release) and other liabilities, with any excess going to severance, retention and change-of-control payments and working capital. The sale needs stockholder approval, holders of about 48.9% of common voting power (and 59.6% of preferred voting power) have agreed to vote in favour, and the company says a merger may best serve stockholders, failing which it would likely be liquidated. This follows through on the 2013 credit agreement maturity pressure and the earlier search for strategic alternatives.

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2 Dec 2013material agreement▼ BadMajor

On November 26, 2013 GeoMet and its banks signed a Sixth Amendment removing all remaining borrowing base determinations and setting the borrowing base at the outstanding principal, reduced dollar for dollar as payments are made. The filing says the credit agreement matures April 1, 2014 and there is no assurance GeoMet can refinance, repay or extend it. This cancels the December 2013 redetermination but leaves the April 2014 maturity unresolved.

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20 June 2013asset acquisition disposition▲ GoodMajor

The Alabama sale to Saga Resource Partners closed June 14, 2013 for net proceeds of about $62.0 million after $1.2 million of adjustments. About $57.0 million repaid credit agreement debt and $5.0 million was held for transaction costs, including closing out some gas hedges. Borrowings are now $77.0 million, set as the new borrowing base, the Tranche B loan is eliminated and the borrowing base deficiency is gone. The credit agreement still ends April 1, 2014. The Alabama assets from the 2011 acquisition and earlier are now gone, leaving Central Appalachia producing.

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7 May 2013material agreement● NeutralMajor

GeoMet agreed on May 3, 2013 to sell all its Alabama coalbed methane properties to Saga Resource Partners LLC for $63.2 million, effective April 1, 2013, with closing expected by June 14, 2013. The Alabama assets produced about 9,700 Mcf/day in March 2013 (about 29% of total production) and had about 43 Bcf of proved reserves. Lenders consented via a Fifth Amendment requiring at least $52 million of repayment, which would eliminate the Tranche B loan and set the borrowing base at the lesser of $83 million or actual borrowings. This is the route to curing the deficiency from the 2012 amendments.

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17 Aug 2012listing compliance notice● NeutralMajor

GeoMet, Inc.'s exchange filed to remove a class of its securities from listing.

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10 Aug 2012material agreement● NeutralMajor

On August 8, 2012 GeoMet signed a Fourth Amendment giving it more time to cure the $33.6 million borrowing base deficiency. The borrowing base stays at $115 million, with loans above that treated as a higher-cost Tranche B, and the facility is no longer revolving and matures April 1, 2014. Cash above $1 million in operating accounts must be applied to the loans each month, financial covenants are removed, and capital spending is capped at $1.5 million for 2012 and $1.0 million for 2013. The CEO is quoted as Bill Rankin, and he says the unresolved deficiency has hindered the search for a strategic alternative. This replaces the July 31 cure deadline with a repayment structure rather than eliminating the debt.

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3 Aug 2012listing compliance notice▼ BadMajor

NASDAQ told GeoMet on August 2, 2012 that it failed to regain the $1.00 minimum bid price, so the common stock will be delisted from the NASDAQ Capital Market at the open on August 13, 2012. GeoMet does not currently plan to appeal and expects the common to trade on the OTC Bulletin Board; the preferred stock stays on NASDAQ. This ends the bid-price process begun in the February 2012 notice.

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25 June 2012material agreement▼ BadMajor

The banks cut GeoMet's borrowing base from $180 million to $115 million, while $148.6 million is drawn, leaving a $33.6 million shortfall; GeoMet can no longer borrow under the facility and had about $4.7 million of cash. A June 21, 2012 amendment gives GeoMet until July 31, 2012 to choose how to cure the shortfall while it negotiates an alternative with the banks, which the filing calls constructive but not assured. If no cure is found, an event of default would be deemed to occur and the lenders could terminate commitments and demand repayment. This reverses the November 2011 expansion of the facility.

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