GeoMet, Inc. closed the announced sale of substantially all of its coalbed methane interests and other assets located in the Appalachian Basin in McDowell, Harrison, Wyoming, Raleigh, Barbour and Taylor Counties, West Virginia and Buchanan County, Virginia (the “Asset Sale”), comprising substantially all of the Company’s remaining assets, to ARP Mountaineer Productions, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Atlas Resource Partners, L.P. (NYSE:ARP), a Delaware limited partnership.
The Asset Sale resulted in net proceeds of approximately $97.5 million after customary purchase price adjustments. A final adjusted purchase price will be settled within 95 days of the closing date. Simultaneously with closing of the Asset Sale, the Company used $69.1 million of the net proceeds to fully repay all outstanding borrowings and accrued interest under the Company’s bank credit agreement. Following these payments the Company’s bank credit agreement was terminated. An additional $3.1 million was used to settle all outstanding natural gas hedge positions.
Lantana Oil & Gas Partners, a Houston based divestiture firm, represented GeoMet in this transaction.
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