NEW YORK, May 30, 2013 /PRNewswire/ -- S&P Capital IQ announced today that it has commenced Standard & Poor's Factual Stock Report coverage on Trans Energy Inc.
Trans Energy, Inc. (BB: TENG), an independent energy company, engages in the acquisition, exploration, development, and production of natural gas and oil in West Virginia. It also engages in the marketing and transportation of natural gas.
The company's business strategy is to economically increase reserves, production and the sale of natural gas and oil from existing and acquired properties in the Marcellus Shale. Trans Energy believes that its strategic location in West Virginia enables it to actively pursue the acquisition and development of producing properties in that area that will enhance the company's revenue base without proportional increases in overhead costs. In late 2007, the company redirected its focus from shallow drilling to drilling exclusively in the Marcellus Shale.
Trans Energy drilled five horizontal wells in 2012 and retained a 50% working interest in two of the wells and an approximate 39% working interest in the remaining three wells. In 2011, the company drilled six horizontal wells in a joint venture with Republic Partners targeting the Marcellus Shale. Republic Partners retained a 50% working interest in these wells, as permitted by the terms of the joint venture. Of the six horizontal wells drilled in 2011, four were drilled through a farm out with an industry partner (the partner)., whereby the industry partner would purchase a working interest in the wellbores. Trans Energy retained a 5% working interest in the wellbores while the industry partner retained a 45% working interest. Once the industry partner receives 100% of its investment, then Trans Energy's working interest will increase to 12.5% and the participating company's working interest will be reduced to 37.5%. Republic Partners retained a 50% working interest in these wells as permitted by the terms of the joint venture.
On January 24, 2013, the company closed the sale of its interests in certain non-core assets for approximately $2,625,000 of net cash proceeds. The interests sold consisted of Trans Energy's working interest in all existing shallow wells, but the company retained an overriding royalty interest of approximately 2.5% on most of the wells. The purchaser assumed the role of operator with respect to approximately 300 wellbores, and intends to commence a workover program with respect to a number of the existing wells. The wells produced at a rate of approximately 800,000 cubic feet equivalent per day as of December 31, 2012, which was the effective date for the transaction.
Trans Energy, Inc. is based in St. Marys, West Virginia.
Standard & Poor's Factual Stock Report coverage on Trans Energy Inc. will also be accessible on an ongoing basis to the investment community by scores of buy-side institutions and sell-side firms that utilize S&P Capital IQ research and information platforms daily. Millions of self-directed investors also have access to the report via their e-brokerage accounts. Please visit www.transenergyinc.com for additional information.
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Currently profiling approximately 500 issuers, Standard & Poor's Factual Stock Reports, produced by S&P Capital IQ, increase market awareness of issuers in the investment community with insightful commentary and key statistics and information. Standard & Poor's Factual Stock Reports provide factual research coverage about company fundamentals and business prospects, thereby enabling information about covered companies to reach a wide investor audience of Buy and Sell-side investors. Updated weekly with the latest pricing, trading volume, and other data, the reports include recent developments, a financial review, key operating information, industry and peer comparisons, institutional holdings analysis, Street Consensus and opinions, performance charts, business summary, fundamental data, and news. Because coverage of these reports is underwritten by the issuer, S&P Capital IQ does not offer investment opinions concerning the advisability of investing in these stocks.
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