GeoMet (GMET)

Production Rates. Unlike conventional and unconventional natural gas production, which typically declines after initial production is established, production from CBM wells typically increases for the first few years of their productive lives although eventual peak rates are often lower than those of typical conventional gas wells. CBM wells also generally decline at a shallow rate relative to typical conventional gas wells.

Low Geologic Risks. Most CBM areas are located in known coal basins where the coal resource has been evaluated for coal mining. These areas have extensive existing geologic information databases. The drilling of new coreholes and a limited number of production test wells reduces the geologic risk prior to committing large development expenditures.

Low Costs. Our costs of finding and developing coalbed methane tend to be low compared to industry averages because our well costs are generally lower due to the relatively shallow depths of gas-bearing coal seams underlying our projects. Coal seams possess the ability to store significantly more gas volumetrically at shallow depths than conventional reservoirs. In the early stages of a CBM project development per unit operating costs are higher because natural gas production per well is initially low and many of our costs are fixed. As average production per well from a project increases over time and economies of scale are realized, the per unit operating costs typically decrease. Over the life of a project, we believe our average per unit costs of finding, developing and producing natural gas will be lower than those of many conventional and unconventional natural gas industry projects.

Long-lived Reserves. Because CBM wells typically have inclining production rates early in their lives and low decline rates thereafter, CBM projects typically result in a reserve life that is significantly longer than many types of conventional gas production.

Highly Experienced Team of CBM Professionals. Our 18-person CBM management, professional, and project management team has an average of more than 18 years of CBM experience and has participated in the drilling and operation of more than 2,700 CBM wells worldwide since 1977.

Large Inventory of Organic Growth Opportunities. Our extensive undeveloped acreage position provides us with an additional 582 net drilling locations.

Track Record of Success in Identifying and Exploiting Large Underdeveloped Resource Plays. We pursue those projects that leverage our CBM expertise to exploit underdeveloped resource potential and shallow gas. We have a history of developing large scale projects in multiple basins with low finding and development costs.

Production Rates. Unlike conventional and unconventional natural gas production, which typically declines after initial production is established, production from CBM wells typically increases for the first few years of their productive lives although eventual peak rates are often lower than those of typical conventional gas wells. CBM wells also generally decline at a shallow rate relative to typical conventional gas wells.

Low Geologic Risks. Most CBM areas are located in known coal basins where the coal resource has been evaluated for coal mining. These areas have extensive existing geologic information databases. The drilling of new coreholes and a limited number of production test wells reduces the geologic risk prior to committing large development expenditures.

Low Costs. Our costs of finding and developing coalbed methane tend to be low compared to industry averages because our well costs are generally lower due to the relatively shallow depths of gas-bearing coal seams underlying our projects. Coal seams possess the ability to store significantly more gas volumetrically at shallow depths than conventional reservoirs. In the early stages of a CBM project development per unit operating costs are higher because natural gas production per well is initially low and many of our costs are fixed. As average production per well from a project increases over time and economies of scale are realized, the per unit operating costs typically decrease. Over the life of a project, we believe our average per unit costs of finding, developing and producing natural gas will be lower than those of many conventional and unconventional natural gas industry projects.

Long-lived Reserves. Because CBM wells typically have inclining production rates early in their lives and low decline rates thereafter, CBM projects typically result in a reserve life that is significantly longer than many types of conventional gas production.

Highly Experienced Team of CBM Professionals. Our 18-person CBM management, professional, and project management team has an average of more than 18 years of CBM experience and has participated in the drilling and operation of more than 2,700 CBM wells worldwide since 1977.

Large Inventory of Organic Growth Opportunities. Our extensive undeveloped acreage position provides us with an additional 582 net drilling locations.

Track Record of Success in Identifying and Exploiting Large Underdeveloped Resource Plays. We pursue those projects that leverage our CBM expertise to exploit underdeveloped resource potential and shallow gas. We have a history of developing large scale projects in multiple basins with low finding and development costs.

Production Rates. Unlike conventional and unconventional natural gas production, which typically declines after initial production is established, production from CBM wells typically increases for the first few years of their productive lives although eventual peak rates are often lower than those of typical conventional gas wells. CBM wells also generally decline at a shallow rate relative to typical conventional gas wells.

Low Geologic Risks. Most CBM areas are located in known coal basins where the coal resource has been evaluated for coal mining. These areas have extensive existing geologic information databases. The drilling of new coreholes and a limited number of production test wells reduces the geologic risk prior to committing large development expenditures.

Low Costs. Our costs of finding and developing coalbed methane tend to be low compared to industry averages because our well costs are generally lower due to the relatively shallow depths of gas-bearing coal seams underlying our projects. Coal seams possess the ability to store significantly more gas volumetrically at shallow depths than conventional reservoirs. In the early stages of a CBM project development per unit operating costs are higher because natural gas production per well is initially low and many of our costs are fixed. As average production per well from a project increases over time and economies of scale are realized, the per unit operating costs typically decrease. Over the life of a project, we believe our average per unit costs of finding, developing and producing natural gas will be lower than those of many conventional and unconventional natural gas industry projects.

Long-lived Reserves. Because CBM wells typically have inclining production rates early in their lives and low decline rates thereafter, CBM projects typically result in a reserve life that is significantly longer than many types of conventional gas production.

Highly Experienced Team of CBM Professionals. Our 18-person CBM management, professional, and project management team has an average of more than 18 years of CBM experience and has participated in the drilling and operation of more than 2,700 CBM wells worldwide since 1977.

Large Inventory of Organic Growth Opportunities. Our extensive undeveloped acreage position provides us with an additional 582 net drilling locations.

Track Record of Success in Identifying and Exploiting Large Underdeveloped Resource Plays. We pursue those projects that leverage our CBM expertise to exploit underdeveloped resource potential and shallow gas. We have a history of developing large scale projects in multiple basins with low finding and development costs.

Production Rates. Unlike conventional and unconventional natural gas production, which typically declines after initial production is established, production
from CBM wells typically increases for the first few years of their productive lives although eventual peak rates are often lower than those of typical conventional gas wells. CBM wells also generally decline at a shallow rate relative to typical
conventional gas wells.

Low Geologic Risks. Most CBM areas are located in known coal basins where the coal resource has been evaluated for coal mining. These areas have extensive
existing geologic information databases. The drilling of new coreholes and a limited number of production test wells reduces the geologic risk prior to committing large development expenditures.

Production Rates. Unlike conventional and unconventional natural gas production, which typically declines after initial production is established, production
from CBM wells typically increases for the first few years of their productive lives although eventual peak rates are often lower than those of typical conventional gas wells. CBM wells also generally decline at a shallow rate relative to typical
conventional gas wells.

Low Geologic Risks. Most CBM areas are located in known coal basins where the coal resource has been evaluated for coal mining. These areas have extensive
existing geologic information databases. The drilling of new coreholes and a limited number of production test wells reduces the geologic risk prior to committing large development expenditures.

Production Rates. Unlike conventional and unconventional natural gas production, which typically declines after initial production is established, production
from CBM wells typically increases for the first few years of their productive lives although eventual peak rates are often lower than those of typical conventional gas wells. CBM wells also generally decline at a shallow rate relative to typical
conventional gas wells.

Low Geologic Risks. Most CBM areas are located in known coal basins where the coal resource has been evaluated for coal mining. These areas have extensive
existing geologic information databases. The drilling of new coreholes and a limited number of production test wells reduces the geologic risk prior to committing large development expenditures.

Production Rates. Unlike conventional natural gas production, which typically declines after initial production is established, production from CBM wells typically increases for the first few years of their productive lives although eventual peak rates are often lower than those of typical conventional gas wells. CBM wells also generally decline at a shallow rate relative to typical conventional gas wells.

Low Geologic Risks. Most CBM areas are located in known coal basins where the coal resource has been evaluated for coal mining. These areas have extensive existing geologic information databases. The drilling of new coreholes and a limited number of production test wells reduces the geologic risk prior to committing large development expenditures.

Low Production Costs. In the early stage of CBM project development per unit operating costs are high because production is initially low and many of our costs are fixed. As production from a project increases and economies of scale are realized, the per unit operating costs typically decrease. Over the life of a project, we believe our average per unit operating costs will be lower than those of many conventional gas industry projects.

Long-lived Reserves. Because CBM wells typically have inclining production rates early in their lives and low decline rates thereafter, CBM projects typically result in a reserve life that is significantly longer than many types of conventional gas production.

Highly Experienced Team of CBM Professionals. Our 18-person CBM management, professional, and project management team has an average of more than 18 years of CBM experience and has participated in the drilling and operation of more than 2,700 CBM wells worldwide since 1977.

Large Inventory of Organic Growth Opportunities. Our extensive undeveloped acreage position provides us with an additional 615.5 net drilling locations.

Track Record of Success in Identifying and Exploiting Large Underdeveloped Resource Plays. We pursue those projects that leverage our CBM expertise to exploit underdeveloped resource potential where we believe we can improve on the prior performance of other operators. We have a history of developing large scale projects in multiple basins with low finding and development costs and low project life operating costs.

Production Rates. Unlike conventional natural gas production, which typically declines after initial production is established, production from CBM wells
typically increases for the first few years of their productive lives although eventual peak rates are often lower than those of typical conventional gas wells. CBM wells also generally decline at a shallow rate relative to typical conventional gas
wells.

Low Geologic Risks. Most CBM areas are located in known coal basins where the coal resource has been evaluated for coal mining. These areas have extensive
existing geologic information databases. The drilling of new coreholes and a limited number of production test wells reduces the geologic risk prior to committing large development expenditures.

Production Rates. Unlike conventional natural gas production, which typically declines after initial production is established, production from CBM wells typically increases for the first few years of their productive lives although eventual peak rates are often lower than those of typical conventional gas wells. CBM wells also generally decline at a shallow rate relative to typical conventional gas wells.

Low Geologic Risks. Most CBM areas are located in known coal basins where the coal resource has been evaluated for coal mining. These areas have extensive existing geologic information databases. The drilling of new coreholes and a limited number of production test wells reduces the geologic risk prior to committing large development expenditures.

Low Finding and Development Costs. Our finding and development costs for the three-year period ended December 31, 2006 have been significantly below the industry average as published by John F. Herold, an independent third party.

Low Production Costs. In the early stage of CBM project development per unit operating costs are high because production is initially low and many of our costs are fixed. As production from a project

increases and economies of scale are realized, the per unit operating costs typically decrease. Over the life of a project, we believe our average per unit operating costs will be lower than those of many conventional gas industry projects.

Long-lived Reserves. Because CBM wells typically have inclining production rates early in their lives and low decline rates thereafter, CBM projects typically result in a reserve life that is significantly longer than many types of conventional gas production.