UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 0-23530
TRANS ENERGY, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 93-0997412
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
210 Second Street, P.O. Box 393, St. Marys, West Virginia 26170
(Address of principal executive offices)
Registrant's telephone no., including area code: (304) 684-7053
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.
Class Outstanding as of September 30, 1997
Common Stock, $.001 par value 5,663,215
TABLE OF CONTENTS
Heading Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements . . . . . . . . . . . . . 3
Consolidated Balance Sheets -- September 30,
1997 and December 31, 1996 . . . . . . . . . . 4
Consolidated Statements of Operations --
three months ended September 30, 1997 and
1996, and nine months ended September 30,
1997 and 1996. . . . . . . . . . . . . . . . . 6
Consolidated Statements of Stockholders' Equity 8
Consolidated Statements of Cash Flows --
three months ended September 30,1997 and
1996, and nine months ended September 30,
1997 and 1996. . . . . . . . . . . . . . . . . 9
Notes to Consolidated Financial Statements . . 11
Item 2. Management's Discussion and Analysis and
Results of Operations. . . . . . . . . . . . . 12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings. . . . . . . . . . . . . . . 14
Item 2. Changes In Securities. . . . . . . . . . . . . 15
Item 3. Defaults Upon Senior Securities. . . . . . . . 15
Item 4. Submission of Matters to a Vote of
Securities Holders . . . . . . . . . . . . . . 15
Item 5. Other Information. . . . . . . . . . . . . . . 15
Item 6. Exhibits and Reports on Form 8-K . . . . . . . 15
SIGNATURES . . . . . . . . . . . . . . . . . . 16
<PAGE>
PART I
Item 1. Financial Statements
The following unaudited Consolidated Financial Statements for
the period ended September 30, 1997 and December 31, 1996, have
been prepared by the Company.
TRANS ENERGY, INC.
CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1997 and December 31, 1996
<PAGE>
TRANS ENERGY, INC.
Consolidated Balance Sheets
ASSETS
September 30, December 31,
1997 1996
(Unaudited)
CURRENT ASSETS
Cash $ 45,044 $ 481,846
Accounts receivable 170,406 235,757
Prepaid expenses 172,756 59,601
Total Current Assets 388,206 777,204
PROPERTY AND EQUIPMENT
Office equipment 318 -
Vehicles 103,354 44,552
Machinery and equipment 62,206 62,206
Pipeline 2,192,001 2,192,001
Well equipment 374,972 358,471
Wells 4,000,398 3,177,416
Leasehold acreage 263,500 263,500
Accumulated depreciation (1,463,056) (1,381,129)
Total Fixed Assets 5,533,693 4,717,017
OTHER ASSETS
Loan acquisition costs - 6,122
Total Other Assets - 6,122
TOTAL ASSETS $ 5,921,899 $5,500,343
The accompanying notes are an integral part of these financial statements.
<PAGE>
TRANS ENERGY, INC.
Consolidated Balance Sheets (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30, December 31,
1997 1996
(Unaudited)
CURRENT LIABILITIES
Accounts payable - trade $ 1,074,583 $ 685,711
Accrued expenses 323,755 29,385
Notes payable - current portion 380,013 645,348
Total Current Liabilities 1,778,351 1,360,444
NET LIABILITIES IN EXCESS OF ASSETS OF
DISCONTINUED OPERATIONS 602,074 668,717
LONG-TERM LIABILITIES
Advances from related parties 64,033 605,190
Notes payable 646,246 646,246
Total Long-Term Liabilities 710,279 1,251,436
Total Liabilities 3,090,704 3,280,597
COMMITMENTS AND CONTINGENCIES - -
MINORITY INTERESTS - -
STOCKHOLDERS' EQUITY
Common Stock: 30,000,000 shares
authorized at $0.001 par value;
5,663,215 and 3,824,043 shares
issued and outstanding, respectively 5,663 3,824
Capital in excess of par value 10,884,873 8,926,633
Accumulated deficit (8,059,341) (6,710,711)
Total Stockholders' Equity 2,831,195 2,219,746
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 5,921,899 $5,500,343
The accompanying notes are an integral part of these financial statements.
<PAGE>
TRANS ENERGY, INC.
Consolidated Statements of Operations
(Unaudited)
For the Nine Months For the Three Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
REVENUES
Oil and gas sales $801,982 $ 984,380 $ 258,432 $357,262
Total Revenues 801,982 984,380 258,432 357,262
COSTS AND EXPENSES
Cost of oil and gas 444,312 627,823 196,047 225,924
Salaries and wages 208,398 77,289 78,012 20,542
Depreciation and
amortization 219,136 114,620 42,784 40,334
Selling, general and
administrative 921,092 284,191 299,608 88,336
Total Costs and
Expenses 1,792,938 1,103,923 616,451 375,136
Net Income (Loss)
from Operations (990,956) (119,543) (358,019) (17,874)
OTHER INCOME (EXPENSE)
Bad debt expense (100,000) - - -
Interest income 10,229 - 74 -
Interest expense (267,903) (722,545) (86,736) (314,667)
Total Other Income
(Expense) (357,674) (722,545) (86,662) (314,667)
NET INCOME (LOSS) BEFORE INCOME
TAXES AND AND MINORITY INTERESTS
AND EXTRAORDINARY
INCOME (LOSS) (1,348,630) (842,088) (444,681) (332,541)
INCOME TAXES - - - -
NET INCOME (LOSS) BEFORE MINORITY
INTERESTS AND EXTRAORDINARY
INCOME (LOSS) (1,348,630) (842,088) (444,681) (332,541)
MINORITY INTERESTS - 15,960 - -
NET INCOME (LOSS) BEFORE
EXTRAORDINARY INCOME (LOSS)
AND DISCONTINUED
OPERATIONS (1,348,630) (826,128) (444,681) (332,541)
LOSS FROM DISCONTINUED
OPERATIONS - (525,720 ) - (361,270)
NET INCOME (LOSS)
BEFORE EXTRAORDINARY
NCOME (LOSS) $(1,348,630) $(1,351,848)$(444,681)$(693,811)
The accompanying notes are an integral part of these financial statements.
<PAGE>
TRANS ENERGY, INC.
Consolidated Statements of Operations
(Unaudited)
For the Nine Months For the Three Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
EXTRAORDINARY INCOME (LOSS)
Forgiveness of debt $ - $ 20,000 $ - $ -
Early payoff of debt - (10,444) - -
TOTAL EXTRAORDINARY
INCOME (LOSS) - 9,556 - -
NET INCOME (LOSS) $(1,348,630) $(1,342,292) $ (444,681) $ (693,811)
PRIMARY EARNINGS (LOSS)
PER SHARE
NET INCOME (LOSS) BEFORE
EXTRAORDINARY INCOME $ (0.31) $ (0.41) $ (0.09) $ (0.22)
EXTRAORDINARY INCOME - NIL - NIL
NET INCOME (LOSS) $ (0.31) $ (0.41) $ (0.09) $ (0.22)
FULLY DILUTED EARNINGS
(LOSS) PER SHARE
NET INCOME (LOSS) BEFORE
EXTRAORDINARY INCOME $ (0.31) $ (0.41) $ (0.09) $ (0.22)
EXTRAORDINARY INCOME - NIL - NIL
NET INCOME (LOSS) $ (0.31) $ (0.41) $ (0.09) $ (0.22)
The accompanying notes are an integral part of these financial statements.
<PAGE>
TRANS ENERGY, INC.
Consolidated Statements of Stockholders' Equity
Capital in
Common Shares Excess of Accumulated
Shares Amount Par Value Deficit
Balance, December 31, 1995 3,174,122 $ 3,174 $5,629,734 $(3,071,721)
Common stock issued for
debenture at $0.90 per share 55,555 56 49,944 -
Common stock issued for
services at $2.67 per share 9,000 9 23,991 -
Common stock warrants issued - - 774,000 -
Cancellation of common stock
options issued services - - (275,000) -
Shareholder loans contributed
to capital - - 250,000 -
Issuance of common stock for
cash at $5.36 per share 585,366 585 3,137,415 -
Common stock offering costs - - (663,451) -
Net loss for the year ended
December 31, 1996 - - - (3,638,990)
Balance, December 31, 1996 3,824,043 3,824 8,926,633 (6,710,711)
Issuance of common stock for
services at $2.75 per share
(unaudited) 25,000 25 68,725 -
Issuance of common stock for
services at $1.38 per share
(unaudited) 75,000 75 103,050 -
Conversion of debenture to common
stock at $1.10 per share
(unaudited) 455,840 456 499,544 -
Conversion of debenture to
common stock $9.90 per share
(unaudited) 1,033,332 1,033 967,171 -
Issuance of common stock for
services to the Company at
$1.28 per share (unaudited) 250,000 250 319,750 -
Net loss for the nine months
ended September 30, 1997
(unaudited) - - - (1,348,630)
Balance, September 30, 1997
(Unaudited) 5,663,215 $ 5,663 $10,884,873 $ (8,059,341)
The accompanying notes are an integral part of these financial statements.
<PAGE>
TRANS ENERGY, INC.
Consolidated Statements of Cash Flows
(Unaudited)
For the Nine Months For the Three Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $(1,348,630) $(1,342,292) $ (444,681) $ (693,811)
Adjustments to Reconcile Net
Income to Cash Provided by
Operating Activities:
Depreciation, depletion
and amortization 219,136 371,129 42,784 64,765
Minority interest - (39,393) - 38
Common stock issued for
services 421,875 24,000 250,000 -
Changes in Operating Assets
and Liabilities:
Decrease (increase) in
accounts receivable 65,351 22,439 4,114 35,440
Decrease (increase) in
inventory - 9,351 - 323,910
Decrease (increase) in
prepaid expenses (113,155) (136) (172,756) -
Decrease (increase) in loan
acquisition costs 98,973 367,587 98,973 193,500
Increase (decrease) in
accounts payable
and accrued expenses 692,396 484,862 196,514 307,401
Increase (decrease) in
interest payable (9,154) (13,357) - 9,464
Cash Provided (Used) by
Operating Activities (26,792) (115,810) (25,052) 240,707
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for property and
equipment (911,363) (82,508) (113,027) (44,169)
Cash Provided (Used) by
Investing Activities $ (911,363) $ (82,508) $ (113,027) $ (44,169)
The accompanying notes are an integral part of these financial statements.
<PAGE>
TRANS ENERGY, INC.
Consolidated Statements of Cash Flows (Continued)
(Unaudited)
For the Nine Months For the Three Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of stock offering costs $ - $ (71,091) $ - $ (31,591)
Borrowings of long-term debt 1,312,700 551,309 - -
Repayment to related parties (410,541) 13,559 - (1,313)
Borrowings from related parties - 200,135 - 111,820
Principal payments on
long-term debt (454,390) (343,655) (300,326) (142,550)
Cash Provided (Used) by
Financing Activities 447,769 350,257 (300,326) (63,634)
NET INCREASE (DECREASE) IN CASH (436,802) 151,939 (438,405) 132,904
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 481,846 - 483,449 19,035
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 45,044 $ 151,939 $ 45,044 $151,937
CASH PAID FOR:
Interest $ 181,167 $ 260,938 $ - $ 92,582
Income taxes $ - $ - $ - $ -
NON-CASH FINANCING ACTIVITIES:
Common stock issued for
services $ 421,875 $ 24,000 $ 250,000 $ -
Conversion of debt to equity $1,538,207 $ 50,000 $1,038,207 $ -
Warrants issued for loan
acquisition costs $ - $ 774,000 $ - $ -
Shareholder loans contributed
to capital $ - $ 250,000 $ - $250,000
The accompanying notes are an integral part of these financial statements.
<PAGE>
TRANS ENERGY, INC.
Notes to the Consolidated Financial Statements
September 30, 1997 and December 31, 1996
NOTE 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been
prepared by the Company without audit. In the opinion of
management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position,
results of operations and cash flows at September 30, 1997 and
for all periods presented have been made.
Certain information and footnote disclosures normally included
in consolidated financial statements prepared in accordance with
general accepted accounting principles have been condensed or
omitted. It is suggested that these condensed consolidated
financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's December
31, 1996 audited consolidated financial statements. The results
of operations for the periods ended September 30, 1997 and 1996
are not necessarily indicative of the operating results for the
full year.
NOTE 2 - CONVERTIBLE DEBENTURES
In March 1997, the Company completed an offering of $1,430,000
of convertible debentures. The Company received net proceeds of
$1,212,700 after the costs of the offering. The costs of the
offering will be amortized over the life of the loan. The
convertible debentures bear interest at 8% per annum, payable on
a prorata basis at the earlier of the conversion date or the
maturity date (March 25, 2000). The convertible debentures are
convertible to common stock at the lesser of 80% of the 5 day
average daily closing bid price for the 5 trading days
immediately preceding the closing date or 75% of the 5 day
average daily closing bid price for the 5 trading days
immediately preceding the applicable conversion date. The
debentures are subject to a mandatory 36 months conversion
feature at the end of which all debentures outstanding will be
automatically converted upon the terms above.
During the nine months ended September 30, 1997 the convertible
debentures were converted to shares of common stock.
Accordingly, the related loan fees were expensed in the period
then ended.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The following table sets forth the percentage relationship to
total revenues of principal items contained in the Company's
Consolidated Statements of Operations for the three month and nine
month periods ended September 30, 1997 and 1996. It should be
noted that percentages discussed throughout this analysis are
stated on an approximate basis.
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
(Unaudited) (Unaudited)
Total revenues . . . . . 100% 100% 100% 100%
Total costs and expenses . 239 105 224 112
Other income (expense) . (34) (88) (45) (73)
Net (loss) before income
taxes, minority interest
and extraordinary income
(loss) . . . . . . . . (172) (93) (168) (86)
Income taxes . . . . . . - - - -
Minority interest. . . . - - - 2
Net (loss) before
extraordinary income
(loss) and discontinued
operations . . . . . . (172) (93) (168) (84)
Loss from discontinued
operations . . . . . . - (101) - (53)
Extraordinary income . . - - - 1
Net income (loss). . . . (172) (194) (168) (136)
Results of Operations
Total Revenues for the three month period ended September 30,
1997 ("third quarter of 1997") and the nine month period ended
September 30, 1997 ("first nine months of 1997) decreased 28% and
19%, respectively, when compared to the corresponding 1996 periods.
This decrease is attributed to the Company's continuing decision
not to purchase gas from its suppliers at a price higher than
management believed it could profitably resell the gas, and was
partially offset by higher prices and higher volumes of oil and gas
produced from Company owned wells. Total costs and expenses as a
percentage of total revenues increased from 105% in the third
quarter of 1996 to 239% for the third quarter of 1997, and from 112
for the first nine months of 1996 to 224% for the first nine months
of 1997. Total costs and expenses for the third quarter of 1997
increased 64% compared to the corresponding 1996 period and
increased 62% for the first nine months of 1997, compared to the
same 1996 period. This increase is primarily attributed to the
224% increase in selling, general and administrative costs which
was partially offset by a 29% decrease in the cost of oil and gas
due to the Company's decision not to purchase higher priced gas
from its suppliers. Salaries and wages increased 280% to $78,012
for the third quarter of 1997 and increased 170% to $208,398 for
the first nine months of 1997, compared to the corresponding 1996
periods. Depreciation and depletion increased 6% in the third
quarter of 1997 and increased 91% for the first nine months of 1997
compared to the same periods in 1996. Selling, general and
administrative expenses increased 239% to $299,608 in the third
quarter of 1997 and increased 224% to $921,092 for the first nine
months of 1997 compared to the same periods in 1996. Interest
expense decreased 72% to $86,736 for the third quarter of 1997 and
decreased 63% to $267,903 for the first nine months of 1997 due to
decreased borrowings and the 1997 issuance of additional shares of
common stock to debenture holders.
The Company's minority interests of $0 for the third quarter
of 1997 was unchanged form the third quarter of 1996. The
Company's net loss was $444,681 for the third quarter of 1997 and
$1,348,630 for the first nine months of 1997 compared to losses of
$693,811 and $1,351,848 for the respective periods in 1996.
For the remainder of fiscal year 1997, management expects
salaries and wages to increase and other general and administrative
expenses to remain at approximately the same rate as for the third
quarter of 1997. The cost of oil and gas produced is expected to
fluctuate with the amount produced and with prices of oil and gas
generally, and management anticipates that revenues are likely to
increase during the remainder of 1997.
Net Operating Losses
The Company has accumulated approximately $8,059,341 of net
operating loss carryforwards as of September 30, 1997, which may be
offset against future taxable income through the year 2011 when the
carryforwards expire. The use of these losses to reduce future
income taxes will depend on the generation of sufficient taxable
income prior to the expiration of the net operating loss
carryforwards. In the event of certain changes in control of the
Company, there will be an annual limitation on the amount of net
operating loss carryforwards which can be used. No tax benefit has
been reported in the financial statements for the period ended
September 30, 1997 because the potential tax benefits of the loss
carryforward is offset by valuation allowance of the same amount.
Liquidity and Capital Resources
Historically, the Company's working capital needs have been
satisfied through its operating revenues and from borrowed funds.
Working capital at September 30, 1997 of a negative $1,390,145
decreased from a negative $583,240 at December 31, 1996. This
change is primarily attributed to the increase in accounts payable
from $685,711 at December 31, 1996 to $1,074,583 at September 30,
1997, and the increase in accrued expenses from $29,385 at December
31, 1996 to $323,755 at September 30, 1997. The Company
anticipates meeting its working capital needs during the remainder
of the current fiscal year with revenues from operations.
<PAGE>
As of September 30, 1997, the Company had total assets of
$5,921,899 and total stockholders equity of $2,831,195 compared to
total assets of $5,500,343 and total stockholders equity of
$2,219,746 at December 31, 1996. This represents a $421.556 (8%)
increase in total assets and a $611,449 (28%) increase in total
stockholders equity for the period. For this same period, cash
decreased from $481,846 to $45,044 and total current assets
decreased 50% due to decreases in accounts receivable and cash.
Total current liabilities increased 31% primarily attributed to an
increase in the Company's accounts payable and accrued expenses.
At September 30, 1997, the Company's current portion of its
long term debt was $380,013. In 1996, certain outstanding
convertible debentures having a face value of $50,000 plus accrued
interest were convened into common stock. In 1997, convertible
debentures with a face value of $1,430,000 were converted into
common stock. The Company currently anticipates that it will be
able to provide for its debt obligations and repayments coming due
during the remainder of 1997 from operating revenues generated by
the Company.
In the opinion of management, inflation has not had a material
effect on the operations of the Company.
Risk Factors and Cautionary Statements
Forward-looking statements in this report are made pursuant to
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. The Company wishes to advise readers that
actual results may differ substantially from such forward-looking
statements. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expressed in or implied by the statements, including,
but not limited to, the following: the ability of the Company to
provide for its debt obligations and to provide for working capital
needs from operating revenues, and other risks detailed in the
Company's periodic report filings with the Securities and Exchange
Commission.
PART II
Item 1. Legal Proceedings
There are no material pending legal proceedings to which the
Company is a party or to which any of its property is subject
except as set forth below.
On December 30, 1996, a complaint entitled R&K Oil Company,
Inc. vs. Trans Energy, Inc. was filed in the United States District
Court, Western District of Texas, Midland/Odessa Division
(# MO96CA197). The complaint alleges that the Company owes R&K Oil
Company, Inc. $131,978 as a result of business transacted by the
Company's subsidiary, Vulcan Energy Corporation. The complaint was
dismissed June 3, 1997.
On March 12, 1997, a complaint entitled F. Worthy Walker vs.
Loren Bagley, William Woodburn, Mark Woodburn, Trans Energy, Inc.
and Vulcan Energy Corporation, was filed in the District Court of
Dallas, Texas (# 9702304C). The complaint alleges that the Company
breached certain contracts related to Mr. Walkers employment with
Vulcan Energy Corporation, and seeks punitive and exemplary
damages. The Company denies all allegations. Management believes
that the results of the proceedings will not have a material
adverse effect on the Company.
On May 14, 1997, a complaint entitled R&K Oil Company, Inc.
vs. Vulcan Energy Corporation and Trans Energy, Inc. was filed in
District Court, Andrews County, Texas, 109th Judicial District
(File #14,430). The complaint alleges that the Company owes R&K
Oil Company, Inc. $126,978 as a result of business transacted by
the Company's subsidiary, Vulcan Energy Corporation. The complaint
also seeks $500,000 for breach of contract. The Company denies all
allegations and management believes that the results of the
proceedings will not have a materially adverse affect on the
Company.
Item 2. Changes In Securities
During the third quarter of 1997, the Company issued 250,000
shares of its common stock, valued at $1.28 per share, to one
person for services rendered to the Company. Also during the third
quarter of 1997, $930,000 of the Company's 8% convertible
debentures, issued in March 1997, were converted into 1,033,332
shares of common stock at $.90 per share, issued to two persons.
The issuances of shares for services was made in a private
transaction in reliance on the exemption from registration provided
by Section 4(2) of the Securities Act of 1933, as amended (the
"Act"). The issuance of shares pursuant to the conversion of the
convertible debentures was made in reliance on the exemption from
registration provided by Section 3(a)(9) and, as to the original
issuance of the convertible debenture, Regulation S of the Act.
Item 3. Defaults Upon Senior Securities
This Item is not applicable to the Company.
Item 4. Submission of Matters to a Vote of Security Holders
This Item is not applicable to the Company.
Item 5. Other Information
This Item is not applicable to the Company.
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the three month
period ended September 30, 1997.
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange
Act of 1934, the Registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
TRANS ENERGY, INC.
Date: November 26, 1997 By Loren E. Bagley
(Signature)
LOREN E. BAGLEY, President
and Chief Executive Officer
(Chief Financial Officer)
Date: November 26, 1997 By William F. Woodburn
(Signature)
William F. Woodburn, Vice
President and Director
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE TRANS ENERGY, INC. FINANCIAL
STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 1997
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 45,044
<SECURITIES> 0
<RECEIVABLES> 170,406
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 388,206
<PP&E> 6,996,749
<DEPRECIATION> 1,463,056
<TOTAL-ASSETS> 5,921,899
<CURRENT-LIABILITIES> 1,778,351
<BONDS> 710,279
0
0
<COMMON> 5,663
<OTHER-SE> 10,884,873
<TOTAL-LIABILITY-AND-EQUITY> 5,921,899
<SALES> 801,982
<TOTAL-REVENUES> 801,982
<CGS> 444,312
<TOTAL-COSTS> 1,792,938
<OTHER-EXPENSES> 100,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 267,903
<INCOME-PRETAX> (1,348,630)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,348,630)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,348,630)
<EPS-PRIMARY> (.31)
<EPS-DILUTED> (.31)
</TABLE>
