25 Coalbed Methane development wells in Peace River
COMMENT: GeoMet and Canada Energy Partners announced the intention to drill 25 wells in the Peace River Project. In the government’s “3-Phase process” for coalbed methane (evaluation/exploration, feasibility/development, production) , this project is the first in BC to move to the feasibility stage.
Canada Energy Partners is a company formed by Ben Jones of Louisiana whose Peace River Corporation acquired the original coalbed methane rights in and around Hudson’s Hope. Both Gilbert L Dozier and Gilbert H Dozier were investors in Peace River Corp. Both Doziers also have an association with Hillsborough Resources in its coalbed methane project on Vancouver Island, through Cornerstone Gas of which Gilbert H is a director, and Gilbert L was a director of Cornerstone’s predecessor company, Texas Canadian Ventures.
Seven wells have already been drilled, plus one water disposal well, plus five wells earlier by Peace River Corp.
In both the evaluation and feasibility phases, the three-year confidentiality period applies with respect to public disclosure of technical findings at the wells – gas, water, etc.
3-Phase process: http://tinyurl.com/2zvs9z
www.geometinc.com
www.canadaenergypartners.com
GeoMet, Inc. Announces Planning for Initial 25 Development Wells at Peace River Project.
Houston, Texas – July 3, 2007 - GeoMet, Inc. (NASDAQ: GMET) (“GeoMet” or the “Company”) announced today the decision to move its Peace River exploration and evaluation project (the “Project”) into the next phase of activity. GeoMet’s wholly-owned Canadian operating subsidiary, Hudson’s Hope Gas, Ltd., will immediately begin the necessary steps to drill approximately 25 wells. The Project consists of approximately 44,468 gross acres (22,334 acres, net to the Company) in the Peace River area near Hudson’s Hope, British Columbia. GeoMet is the operator and owns a 50% working interest in the Project. Canada Energy Partners Inc. (TSV-X: CE) owns the remaining interest.
During the last three years, the Company has drilled or recompleted seven production test wells, one produced water disposal well and conducted gas desorption tests on all the targeted coal seams. The Company has recently completed an extensive economic evaluation based on the test well program and projected development and operating costs, which yielded attractive results.
Hudson’s Hope Gas, Ltd. will begin consultations with affected communities and First Nations (Canadian indigenous populations). GeoMet will begin the design of the initial drilling plan which will include at least one produced water disposal well and the necessary project infrastructure and gas treating and sales facilities. Thereafter, GeoMet will finalize permitting and, after final approval by the Company’s Board of Directors, initiate construction of drilling locations and infrastructure. Drilling would commence sometime thereafter depending upon seasonal operating restrictions and/or conditions.
About GeoMet, Inc.
GeoMet, Inc. is an independent energy company engaged in the exploration for and development and production of natural gas from coal seams (“coalbed methane” or “CBM”). 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 development rights, principally in Alabama, British Columbia, Colorado, Louisiana, Virginia, and West Virginia.
For more information please contact Stephen M. Smith at (713) 287-2251 or ssmith@geometcbm.com or visit our website at www.geometinc.com.