TENG Trans Energy's Proved Reserves Increase 281%; Top 21 Bcfe
ST. MARYS, W.Va., Feb. 28 /PRNewswire-FirstCall/ -- Trans Energy, Inc. (OTC 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 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 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.