Trans Energy Announces Expansion Of Marcellus Joint Venture
ST. MARYS, W.Va., July 20 /PRNewswire-FirstCall/ -- Trans Energy, Inc. (OTC Bulletin Board: TENG) announced today that it has expanded its joint venture with Republic Energy Ventures, LLC ("Republic") into Marion and Tyler counties in West Virginia, building upon its already successful operating areas in Wetzel and Marshall counties. As part of this expansion, the Company sold Republic a 50% interest in approximately 5,000 net acres in Marion County and approximately 2,600 net acres in Tyler County and a small overriding royalty position on over 6,000 net acres in Wetzel County for cash proceeds of $23,500,000 and drilling credits of $3,500,000.
The Company repaid $15,000,000 on its senior credit facility and intends to use the balance of the proceeds for working capital to develop its position in the Marcellus shale and for general corporate purposes.
John G. Corp, President of Trans Energy, said, "The entry of the joint venture into both Marion and Tyler counties expands our relationship with Republic into two additional counties we believe hold substantial reserves and the potential to add significantly to our production. We continue to move forward with our plan to rapidly develop our acreage position in the Marcellus shale along with our experienced partner. We have plans to jointly drill up to five additional horizontal Marcellus wells this year and are developing our capital plan for 2011 with our partner."
About Trans Energy, Inc.Trans Energy, Inc. (OTC 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 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 for the fiscal year ended December 31, 2010 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. SOURCE Trans Energy, Inc.
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