ST. MARYS, W.Va., Nov. 21 /PRNewswire-FirstCall/ -- Trans Energy,
Inc. (OTC:TENG) (BULLETIN BOARD: TENG) announced today third
quarter and nine month operating results for 2006. Net loss for the
third quarter of 2006 was $1,742,810 compared to $434,902 for the
same period in 2005. Net loss for the nine months of 2006 was
$2,592,562 compared to $1,027,247 for the first nine months of
2005. Selected Operational and Financial Highlights for Three
Months 2006 versus Three Months 2005: - Oil and gas revenue
decreased 16% from $1,100,355 to $921,062; - Cost of oil and gas
decreased 28% from $918,826 to $660,170 reflecting the decrease in
third party natural gas purchased; - Loss from operations
(excluding shares issued for services) decreased 38% from $195,262
to $121,138. Selected Operational and Financial Highlights for Nine
Months 2006 versus Nine Months 2005: - Oil and gas revenue
increased 27% from $2,714,043 to $3,445,587; - Loss from operations
(excluding shares issued for services) decreased 42% from $664,446
to $384,485; - Expenditures for property and equipment increased
340% from $556,155 to $2,446,590; - Net profit (loss) before
discontinued operations (excluding shares issued for services) went
from a loss of $782,041 to a profit of $269,953. James K. Abcouwer,
President and CEO of Trans Energy said, "2006 is a year in which
Trans Energy is reshaping and repositioning itself to provide a
foundation for future success. Our acreage acquisitions,
divestiture of non- strategic businesses, limited drilling to
maintain leaseholds and prove-up some of our reserves, as well as
the key hires we made and the incentive programs put in place are
elements of this preparation. We're now starting to see this
repositioning reflected in the fundamentals of the Company, and
will see more and more as we perform in the year ahead." TRANS
ENERGY, INC. AND SUBSIDIARIES Consolidated Balance Sheets ASSETS
September 30, December 31, 2006 2005 (Unaudited) CURRENT ASSETS
Cash $386,346 $439,258 Accounts receivable, net of allowance for
doubtful accounts of $15,621 377,264 396,696 Accounts receivable -
related parties 418,000 1,000,000 Prepaid expenses 6,794 9,617
Total Current Assets 1,188,404 1,845,571 Oil and gas properties,
using successful efforts accounting, and property and equipment,
net of accumulated depletion and depreciation of $1,576,765 and
$4,101,429 5,636,913 2,160,256 OTHER ASSETS Assets of discontinued
operations - 6,672,688 Loan fees, net of accumulated amortization
of $106, 7,433 - Deposits 2,873 4,914 Investments 627,628 175,000
Life insurance, cash surrender value 75,995 75,995 Total Other
Assets 713,929 6,928,597 TOTAL ASSETS $7,539,246 $10,934,424
LIABILITIES AND STOCKHOLDERS' EQUITY September 30, December 31,
2006 2005 (Unaudited) CURRENT LIABILITIES Accounts payable - trade
$1,132,030 $2,355,429 Accounts payable - related parties 211,404 -
Accrued expenses 546,758 860,368 Judgments payable 116,102 77,767
Debentures payable 50,000 50,000 Short term debt - related parties
552,431 855,502 Notes payable - current portion 712,377 659,205
Total Current Liabilities 3,321,101 4,858,271 LONG-TERM LIABILITIES
Notes payable 1,835,616 6,872 Liabilities of discontinued
operations - 4,772,812 Asset retirement obligation 1,677,888
799,393 Total Long-Term Liabilities 3,513,504 5,579,077 Total
Liabilities 6,834,606 10,437,348 COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY Preferred stock; 10,000,000 shares authorized
at $0.001 par value; 0 shares issued and outstanding - - Common
stock; 500,000,000 shares authorized at $0.001 par value; 9,433,565
and 4,952,148 shares issued and 9,433,565 and 4,707,515 shares
outstanding, respectively 9,433 4,952 Capital in excess of par
value 33,365,976 30,856,798 Treasury stock - (286,467) Accumulated
deficit (32,670,769) (30,078,207) Total Stockholders' Equity
704,640 497,076 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$7,539,246 $10,934,424 TRANS ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (Unaudited) For the For the
Three Months Ended Nine Months Ended September 30, September 30,
2006 2005 2006 2005 REVENUES $921,062 $1,100,355 $3,445,587
$2,714,043 COSTS AND EXPENSES Cost of oil and gas 660,170 918,826
2,780,681 2,322,168 Depreciation, depletion and amortization 50,426
99,839 244,444 315,525 Selling, general and administrative
1,885,604 276,952 2,476,947 740,796 Total Costs and Expenses
2,596,200 1,295,617 5,502,072 3,378,489 LOSS FROM OPERATIONS
(1,675,138) (195,262) (2,056,485) (664,446) OTHER INCOME (EXPENSE)
Gain on extinguishment of debt 11,864 5,000 17,072 7,306 Net gain
(loss) on sale of assets 14,900 (38,725) 719,016 (46,590) Other
income (expense) (21,027) 1,264 63,949 6,845 Interest expense
(73,409) (31,884) (145,599) (85,156) Total Other Income (Expense)
(67,672) (64,345) 654,438 (117,595) NET LOSS BEFORE DISCONTINUED
OPERATIONS (1,742,810) (259,607) (1,402,047) (782,041) GAIN (LOSS)
FROM DISCONTINUED OPERATIONS - (175,295) 183,775 (245,206) GAIN
(LOSS) ON DISPOSAL OF DISCONTINUED OPERATIONS - - (1,374,290) - NET
LOSS $(1,742,810) $(434,902) $(2,592,562) $(1,027,247) BASIC AND
DILUTED NET LOSS PER SHARE Continuing Operations (0.25) (0.07)
(0.26) (0.17) Discontinued Operations 0.00 (0.04) (0.22) (0.05)
$(0.25) $(0.11) $(0.48) $(0.22) BASIC AND DILUTED WEIGHTED AVERAGE
SHARES OUTSTANDING 6,938,208 4,815,098 5,405,293 4,692,358 About
Trans Energy, Inc. Trans Energy, Inc. (OTC:TENG) (BULLETIN BOARD:
TENG) is an oil and gas exploration and development company in the
Appalachian Basin. Further information can be found on the
Company's website at http://www.transenergyinc.com/. Safe Harbor
Statement under the Private Securities Litigation Reform Act of
1995 - Forward-looking statements in this release do not constitute
guarantees of future performance. Such forward-looking statements
are subject to risks and uncertainties that could cause our actual
results to differ materially from those anticipated.
Forward-looking statements in this document include statements
regarding the Company's exploration, drilling and development
plans, the Company's expectations regarding the timing and success
of such programs. Factors that could cause or contribute to such
differences include, but are not limited to, fluctuations in the
prices of oil and gas, uncertainties inherent in estimating
quantities of oil and gas reserves and projecting future rates of
production and timing of development activities, competition,
operating risks, acquisition risks, liquidity and capital
requirements, the effects of governmental regulation, adverse
changes in the market for the Company's oil and gas production,
dependence upon third-party vendors, and other risks detailed in
the Company's periodic report filings with the Securities and
Exchange Commission. For a more detailed discussion of the risks
and uncertainties of our business, please refer to our Annual
Report on Form 10-K and our amended Annual Report on Form 10-K/A
for the fiscal year ended December 31, 2005 filed with the
Securities and Exchange Commission. We assume no obligation to
update any forward-looking information contained in this press
release or with respect to the announcements described herein.
DATASOURCE: Trans Energy, Inc. CONTACT: James K. Abcouwer,
President and CEO of Trans Energy, Inc., +1-304-422-4062 Web site:
http://www.transenergyinc.com/
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