ST. MARYS, W.V., May 21 /PRNewswire-FirstCall/ -- Trans Energy, Inc. (Pink Sheets: TENG - News) announced today its financial results for the quarter ended March 31, 2007.
Selected Operational and Financial Highlights for first quarter 2007 versus first quarter 2006:

-- Net Loss decreased 68.9% to $578,000 from $1.9 million;
-- Production costs decreased 23.3% to $109,000 from $143,000;
-- Oil and gas revenue decreased 12.3% to 284,000 from $324,000;

James K. Abcouwer, President and CEO of Trans Energy said, "Oil and gas revenue levels change as commodity prices fluctuate from month to month. The actual production levels for the company are now gradually increasing as the company works over many of our oldest wells. The reduction in production costs is significant as the company settles into more normal operations after the reorganization that was completed during 2006.

"With the complete overhaul of the company done, we are moving forward with our core contingent of 18 employees focused on the development of our acreage position in West Virginia. The cost levels reported this quarter are representative of a lean production company, with a small leasing staff, a small accounting department, and a lean but sufficient field operations group. After a turbulent 2006, we are now unencumbered by unrelated businesses and the divestiture of non-core assets. Our task now is to develop the acreage, and execute the most basic of business strategies -- add to the top line, and control costs."

Of significance this quarter is the acquisition of acreage in Trego County, Kansas. This is not a strategic shift away from our main focus in the Appalachian Basin, but rather it is an opportunistic move to participate in a proven oil producing area. Currently, we are working on a 3-D seismic shoot of the area to identify sub-surface features. We will proceed with developmental drilling if the 3-D seismic shoot reveals the multi-zoned oil resource as in neighboring production areas.

He continued, "We also entered into an agreement with P.D. Farr to purchase all rights, title and interests in the 384 acre Ezra Hays lease in West Virginia including oil and gas wells, associated well equipment, interest in the natural gas sales pipeline, all rights to Dominion Gas sales meter and all pertinent rights-of-way. We believe that this property will enhance our future prospects for revenue growth, and it lies in the region we have made our primary target.

Abcouwer concluded, "We will drill more wells this year than last, adding to our revenue, using commodity hedging to lock-in the currently attractive market prices, while keeping our fixed costs fixed. During the coming year, we'll reach a production and income level commensurate with our current size. As the year continues, we'll surpass that level of production and revenue, and become profitable."

About Trans Energy, Inc.

Trans Energy, Inc. (Pink Sheets: TENG; TENG.PK) is an oil and gas exploration and development company in the Appalachian Basin headquartered in St Mary's West Virginia, with offices also in Parkersburg. The company, operating since 1994, restructured itself during 2006 with a new management team, a focus on oil and gas development, and a business plan for rapid growth. 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, 2025 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.