ST. MARYS, W.Va., April 8, 2011 /PRNewswire/ -- Trans Energy, Inc. (OTC BB: TENG) announced today that it turned the Keaton #1H horizontal Marcellus well into a sales line on Monday, April 4.
The Company also announced that it completed the 15 stage hydraulic fracture stimulation on the Groves #1H horizontal Marcellus well in Marshall County, WV, and is currently drilling out the frac plugs and will then run production tubing in the well. The Company expects the Groves #1H to be turned into a sales line by April 22.
The Company also announced that, on March 31, 2011, it completed the sale of 2,950 net acres in its operating areas to its joint development partner, Republic Energy Ventures LLC, for $14,012,500. The Company used $5,000,000 to pay down its existing senior bank indebtedness and the balance for working capital. As part of this transaction, the Company has reached an agreement with its senior secured lender, CIT Capital USA, Inc. ("CIT") for an extension of its existing bank loan until March 31, 2012.
John G. Corp, President of Trans Energy, said, "With the success of our drilling activities in the Marcellus shale we are pleased to have this working capital to complete the funding of our recent drilling activities and to have reached an agreement with CIT for an extension of our senior credit facility. We continue to develop our acreage position in the Marcellus shale and look forward to starting our 2011 drilling program."
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, 2009 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.