Trans Energy's Proved Reserves Increase 281%; Top 21 Bcfe
February 28 2007 - 10:05AM
PR Newswire (US)
ST. MARYS, W.Va., Feb. 28 /PRNewswire-FirstCall/ -- Trans Energy,
Inc. (OTC:TENG) (BULLETIN BOARD: TENG) announced today that its
year-end 2006 proved reserves increased 281% to 21.2 billion cubic
feet equivalents ("Bcfe"). Proved reserves were 62% natural gas and
38% oil. 25% of the reserves are classified as proved developed,
and 75% are proved undeveloped. In accordance with SEC guidelines,
this reserve report does not include any reserves classified as
probable or possible. The analysis and report was recently
completed by Data and Consulting Services, a Division of
Schlumberger Technology Corporation. James K. Abcouwer, President
and CEO of Trans Energy, said all of the Company's current reserves
are located in the Appalachian Basin and this reflects the
Company's commitment to and focus on oil and natural gas
development in that region. "We chose a worldwide recognized
reserves analyst, Schlumberger, to perform this most recent
estimate of the company's proved reserves. It demonstrates that the
development we did in 2006 was effective in adding to both our
production level and our reserve base -- in fact, we almost
quadrupled our reported proved base. We have begun in earnest to
execute our growth plan. To maintain four-fold increases will
require property acquisitions, we plan aggressive growth -- at
least doubling our proved reserves annually -- via our drilling
program." Abcouwer said the company will report some additional
reserves classified as probable and possible, but these reserves
were not included in this SEC reporting format. "Although not
included in this inventory of proved resources, we consider these
probable reserves as significant, and our 2007 program will cause
much of them to be reclassified into the proved category." The
present-value analysis portion of the report indicates a "PV-10" or
present value of these reserves on a discounted cashflow basis to
be over $27 million. Schlumberger used an end-of-year spot market
price of $5.62 per dth with no future escalation in this
projection. 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/
Copyright