Trans Energy Announces Closing of a $3,000,000 Line of Credit to be Utilized for its Work-Over Program on its 12,000 Acre Smithf
12 Diciembre 2006 - 7:05AM
PR Newswire (US)
ST. MARYS, W.Va., Dec. 12 /PRNewswire-FirstCall/ -- Trans Energy,
Inc. (OTC:TENG) (BULLETIN BOARD: TENG) announced today that it has
closed on a $3,000,000 line of credit to be utilized for its
work-over program on its 12,000 acre Smithfield/Wallace field in
Wetzel County, West Virginia. The Smithfield/Wallace field consists
of approximately 102 existing wells. As part of its work-over
program the Company has engaged a third party service rig on a full
time basis and with the initial success of the work-over program
the Company decided that a larger work-over program should be
designed and executed including adding a second third party service
rig. The work-over program consists of moving a service rig on each
of the existing wells, running a series of tests and evaluating
whether or not a pumping unit should be installed to lift the
fluids out of the well to increase both the natural gas and oil
production. Huntington National Bank of Morgantown, WV. provided
the line of credit and is contingent upon the Company maintaining
certain covenants and terms and conditions and is secured by the
all of the Company's interests in the Smithfield/Wallace field.
James K. Abcouwer, President and CEO of Trans Energy, said the
work-over program reflects the Company's commitment and focus in
oil and natural gas exploration and development in the Appalachian
Basin. "This work-over program will be our main focus of capital
spending over the next few months. The work-over program of the
Smithfield/Wallace field will provide additional revenues for the
Company and this acreage fits strategically with our future
exploration plans. The existing shallow producing wells produce
cash flow and hold the leases for us going forward. This acreage
has deeper unexploited zones of oil and natural gas that we will
develop over the next several years. With the initial results from
our just started work-over program we determined that a larger
capital investment was needed and we are pleased to have this
financing in place to complete this project." 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/
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