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EnerCom, Inc. traveled with Steve Lucado, chairman, and John Corp, president of Trans Energy, Inc. (ticker: TENG) to meet with investors in New York City and Baltimore during the week of April 15, 2013.  Click here for the company’s latest corporate presentation.

Trans Energy, Inc. is a pure play Marcellus Shale oil and gas exploration and development company operating in the wet-gas window of West Virginia.

Below are a series of questions the management team fielded during its meetings with investors.

  • In the past 18 months, you have successfully grown production, increased reserves and proved up additional acreage in the Marcellus Shale.  What were the primary factors contributed to your company’s success in 2012 and early 2013 compared to previous years?
  • During your presentation at the IPAA conference you note the importance of “identified well bores” rather than acreage alone.  What is your rationale for taking this approach?
  • How many well bores have you identified to date?  How many well bores can you add by downspacing to 500-acre spacing from 750-acre spacing?
  • Not too long ago, you expanded your credit facility by $25 million.  Is this sufficient to fully fund your 2013 drilling program?
  • Improved completion techniques have driven your internal rates of return to north of 40% from approximately 25%.  What completion techniques have you implemented that contributed to this success?
  • Your existing PowerPoint presentation indicates approximately two-thirds of your acreage is held by production.  What steps are you taking to further increase that number?
  • Is your acreage prospective for the Utica and Upper Devonian zones?
  • A quick back-of-the-envelope calculation shows that TENG’s proved reserves and acreage position is worth $11 to $13 per share.  Your stock, however, trades in the $3 per share range.  What are investors missing?  What is the disconnect?
  • How many wells do you plan to drill in 2013?
  • You’ve gone a long way in proving up your acreage position in Marshall and Wetzel Counties, West Virginia.  Is your 2013 drilling plan sufficient to take steps to prove up your remaining acreage positions in Tyler and Marion Counties, West Virginia?
  • You operate in the wet-gas window of the Marcellus.  What percentage of your production stream is wet gas?
  • The company’s recent 10K filing made on April 16, 2013 can be found here.

Acreage Map

Operationsw Overview Map

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. As of the report date, neither EnerCom nor any of its employees has a financial interest in any equity or debt of any company mentioned in this report.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.