Current TENG Stock Info

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

On October 2, 2013, TENG announced the divestiture of 1,163 net acres, two pad sites and one uncompleted horizontal Marcellus well, all in Tyler County, West Virginia, to Antero Resources (future ticker: AR) for approximately $11.2 million. The transaction is expected to close before year end 2013, pending satisfactory title diligence by the buyer.

OAG360 Comments:

TENG believes allocating the proceeds from the sale toward development of its core acreage positions in Marshall, Wetzel and Marion Counties will further enhance the value of its positions in those counties, thereby increasing shareholder value.

OAG360 notes the acreage sold represents approximately six percent of Trans Energy’s total net acreage position targeting the Marcellus Shale. Pro forma the sale, TENG owns a combined 17,500 net acres in three counties.

The raw per acre sale price was $9,630 per acre. According to PLS, since March 2012, approximately 39 Utica and Marcellus deals have been completed with an average price of $5,067 per acre. Using the average price per acre paid in the last 39 Utica/Marcellus deals and the $9,630 per acre TENG received for Tyler County, TENG’s remaining 17,500 net acres could be worth between $88.7 million and $168.5 million. At the time of publishing, TENG’s market capitalization was $39 million.

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. As of the report date, no employee of EnerCom holds an equity position in Trans Energy.


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